{"id":31376,"date":"2026-05-12T14:47:55","date_gmt":"2026-05-12T14:47:55","guid":{"rendered":"https:\/\/brownsburgsentinel.com\/site\/?p=31376"},"modified":"2026-05-12T19:53:22","modified_gmt":"2026-05-12T19:53:22","slug":"referendum-deadline-looms-as-town-schools-and-townships-seek-funding-compromise","status":"publish","type":"post","link":"https:\/\/brownsburgsentinel.com\/site\/2026\/05\/12\/referendum-deadline-looms-as-town-schools-and-townships-seek-funding-compromise\/","title":{"rendered":"Referendum Deadline Looms as Town, Schools, and Townships Seek Funding Compromise"},"content":{"rendered":"
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At A Glance:
\n<\/b>What: <\/b><\/strong>Brownsburg Community School Corporation seeks to close short-term funding gaps and avoid a 2026 referendum by partnering with the Town of Brownsburg, Brown and Lincoln Townships.<\/p>\n

What:<\/strong> Joint Town Council & RDC Meeting – May 14th,  2026, 6:00pm – Town Hall
\nWhat:<\/strong> Joint Brown & Lincoln Township Meeting – May 19th, 2026 6:30pm – Town Hall 
\nWhat:<\/strong> Information how to contact your public servants is listed near the bottom of this article.<\/p>\n

Summary:
\n<\/strong>Brownsburg schools face a multi-million-dollar funding gap caused by recent state legislation and tax cuts. The Brownsburg Community School Corporation<\/a><\/span> (BCSC) has already cut costs, has turned to local taxing entities for additional temporary support. Town and township officials are negotiating contributions that could prevent a 2026 referendum, though a vote may still be necessary in 2028 if state funding does not improve. BCSC must secure alternative funding before the referendum<\/a><\/span> filing deadline of June 1st 2026.<\/p>\n

The Town of Brownsburg is also facing financial impacts from this legislation, and an overview of the Town\u2019s position is included in this article.
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A Brief Look Back, How We Got Here<\/strong><\/h3>\n

2023 House Bill 1454 Is Passed<\/strong>
\nThis discontinued the option of seeking an exemption from the Department of Local Government Finance (DLGF), where the DLGF confirmed eligibility within prescribed guidelines, they then dictate the surplus monies BCSC could transfer between capital and operating funds. This resulted in a loss of approximately 3 million to the operations fund.<\/p>\n

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2024 BCSC Devises Austerity Measures<\/strong>
\nBCSC executive staff has implemented austerity measures, including an organization wide multi-year wage freeze, operational efficiency initiatives, and workforce reductions through attrition. With school board approval, transfers from the Education Fund to the Operations Fund may be incrementally increased, from  5.5% each year, up to an amount to mitigate revenue losses from HB 1454. Program rollout begins in 2025 with completion scheduled for 2026.\"\"<\/p>\n

2025-2026 BCSC Eliminates Positions and Enacts Operational Efficiencies<\/strong>
\nBCSC eliminated 49 positions for 2026\u201327, generating $2,438,000 in personnel savings across certified staff, educational support staff, and operations support staff.
\nAdditional operational and one-time savings total $990,000.
\nBringing total projected cost reductions to $3,326,000.<\/p>\n

Given the aforementioned, BCSC felt they had weathered the budgetary storm.<\/strong>  <\/p>\n

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2025 Senate Enrolled Act 1 Reduces Tax Revenue<\/strong>
\nSenate Enrolled Act 1 commonly known as SB1 passed on April 15, 2025, which included current year and future property tax cuts. It impacts all municipalities, school corporations, fire territories, among government entities.  This legislation was enacted after BCSC budgets were submitted to the DLGF. This results in a 1.3-million revenue shortfall. BCSC estimates $7.9 million in cuts over the next three years.  BCSC realizes the loss of revenue outweighs earlier mitigations and seeks additional short term revenue sources. <\/p>\n

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2026 BCSC Begins Community Engagement Series and Negotiations with Town of Brownsburg Begin<\/strong>
\nBCSC rolls out their Community Engagement Series<\/a><\/span>. Included within their program was a call to action asking the public to contact the Indiana state legislators to carve out an exception to HB1454 for school systems similar to BCSC who are in like circumstances. BCSC viewed this was an easy stopgap measure to replace funding lost by SB1. The short legislative session was primarily focused on redistricting, no action was taken to address BCSC and like districts budgetary woes.     <\/p>\n

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Slide Taken From Community Engagement Session 4 – Slide 21<\/figcaption><\/figure>\n

The series also include information on which areas would be reviewed if additional cuts were necessary.  Being on this list is NOT an indication cuts will occur, just that these areas are first for further scrutiny.<\/p>\n

Following the failure by the Indiana State Legislature to act, BCSC publicly announces their intention to seek 15% of Town of Brownsburg Tax Increment Finance<\/a><\/span> (TIF<\/a>)<\/span> revenues. This first-of-its-kind request is in alignment with Indiana State Law. BCSC publishes their estimate that 1.3 million are eligible for transfer.<\/p>\n

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2026 A Difference in Available TIF Monies Surfaces<\/strong>
\nThe Town of Brownsburg Redevelopment Commission (RDC) offers $550,000. The $1.3 million figure BCSC used represents the maximum amount the Commission could legally provide under Indiana\u2019s 15% TIF statute based on eligible 2025 revenues. The Commission instead offered $550,000 because it says significant debt obligations, reserve requirements, future capital projects, refinancing risks, and anticipated revenue losses from SEA 1 require the Town to retain more TIF funds for financial stability.<\/p>\n

At the April 16, 2026 RDC<\/a><\/span> meeting $550,000 is approved. The RDC suggests the Town Council is better positioned to adjust the number up or down as the measure is forwarded to them for approval. The town council tabled the same matter on April 23rd<\/sup>, 2026<\/a><\/span>, noting more time was needed to explore additional funding options.<\/p>\n

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2026 The Town Council Asks the Townships to Share a Portion of the Load<\/strong>
\nMembers of the Brownsburg Town Council initiated discussions with the Lincoln and Brown Township Trustees to explore financial support options for BCSC to help avoid a referendum. Following multiple legal reviews, BCSC requested assistance for the McKinney-Vento program<\/a><\/span>, an unfunded Federal mandate from the Reagan Administration, which provides transportation and educational continuity for students experiencing homelessness, even when temporary housing places them outside district boundaries. The transportation cost for the program is approximately $315,000 annually. BCSC seeks a three-year financial commitment from the townships to help sustain this mandated service.<\/p>\n

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Town of Brownsburg Faces Its Own Fiscal Pressures\"\"<\/strong><\/h2>\n

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Town of Brownsburg Faces Budget Strain Amid SB1 Revenue Losses<\/strong><\/p>\n

The Town of Brownsburg is preparing for significant financial challenges following the passage of Indiana SEA 1 (SB1), which has already reduced property tax revenue and threatens future losses.\"\"<\/p>\n

Austerity Measures and Cost Savings
\n<\/strong>Town officials say Brownsburg has already implemented multiple cost-saving strategies while aggressively pursuing outside funding for infrastructure projects.<\/p>\n