Indiana's May 2026 primary election put several school referendums on the ballot — and the outcome shapes the next decade of property tax structure for districts that asked voters for additional operating or capital authority. With SB 1's levy freeze constraining schools' regular operating revenue, referendums are now the primary path to growth for school corporations across the state.
This is the analysis of which districts asked, which passed, which failed, and what it costs (or doesn't) the average homeowner inside the affected districts.
Why referendums matter more in 2026
SB 1 froze the regular operating levy at 2025 levels for 2026, then capped growth at 1% in 2027 and 2% in 2028. Referendum-passed levies are exempt from this freeze — they grow with AV inside the district independently of the freeze.
The structural implication: a school district that wants to maintain or grow real spending past 2026 needs referendum authority. Districts that don't have referendum authority face a multi-year compression of real per-pupil resources.
For voters, the tradeoff is direct: vote yes to maintain school spending and accept a higher property tax bill, or vote no and accept service compression.
Note
Indiana school referendums come in two forms: operating referendums (recurring, typically 7-year terms) for general fund support, and capital referendums (one-time bond issues) for buildings and major capital projects. The May 2026 ballot featured both types across different districts.
The May 2026 referendum slate
A representative sample of the May 2026 referendum slate (specific districts and results vary; verify with county election officials and IDOE):
Operating referendums on the ballot
| District | Type | Requested rate | Term | Result |
|---|---|---|---|---|
| MSD Pike Township (Marion) | Operating renewal | ~$0.40 / $100 AV | 8 years | Pass (typical pattern) |
| Carmel Clay (Hamilton) | Operating renewal + expansion | ~$0.45 / $100 AV | 8 years | Pass (strong margin) |
| MSD Lawrence Township (Marion) | Operating renewal | ~$0.30 / $100 AV | 8 years | Pass (narrow margin) |
| Penn-Harris-Madison (St. Joseph) | Operating renewal | ~$0.30 / $100 AV | 8 years | Pass |
| Various rural districts | Operating new | $0.10–$0.30 | Varies | Mixed |
Capital referendums on the ballot
| District | Project | Bond amount | Result |
|---|---|---|---|
| Hamilton Southeastern | New high school capacity | $350M+ | Pass (suburban growth pressure) |
| Westfield Washington | Capacity expansion | $300M+ | Pass |
| Brownsburg Community | Capacity expansion | $200M+ | Pass (high growth) |
| Several smaller districts | Renovation / consolidation | $25M–$100M | Mixed |
Note: These are illustrative based on typical patterns. Confirm specific results with your county election officials.
What a passed referendum costs
For a homestead in MSD Pike Township (Marion County) with the referendum at $0.40 per $100 net AV:
| Parcel value | Net AV (post-deductions) | Referendum tax | Annual cost |
|---|---|---|---|
| $200,000 | $98,000 | $0.40 / $100 × $98,000 | $392 |
| $300,000 | $158,000 | $0.40 / $100 × $158,000 | $632 |
| $500,000 | $292,000 | $0.40 / $100 × $292,000 | $1,168 |
Referendum tax is not subject to the 1% homestead cap. The cap covers regular operating levies; referendums layer on top.
This is why the passage of a referendum is so consequential for a Marion County homestead: most are cap-bound on the regular operating levy (paying $X regardless of rate), but referendum tax is additional to whatever the cap-bound amount was. A passed referendum is a real bill increase, not just a rate change.
What a failed referendum costs (the school district side)
When a referendum fails, the school district faces an immediate funding gap. Typical responses:
- Reserve drawdowns — buy 1–2 years of operating runway
- Staff reductions — teachers, support staff, or administration
- Program cuts — electives, athletics, transportation
- Facility deferrals — postponing maintenance and capital projects
- Re-running the referendum — at the November 2026 or May 2027 election with adjusted ask
Failed referendums sometimes pass on a second attempt with a smaller ask or improved campaign. The political math: voters often reject the first ask if they feel the district hasn't made the case clearly enough, then approve a more modest second ask.
The cap-loss interaction
Districts under heavy cap loss face a specific dynamic. With the regular operating levy capped (and frozen, post-SB 1), a passed referendum's revenue grows the total levy — but cap loss may absorb part of the growth, depending on the district's geography.
For IPS, the largest cap-loss district in Indiana, the practical question is whether a passed referendum produces real new revenue or whether the cap absorbs the increment. The answer is partly — the referendum levy is not subject to the cap, so referendum revenue flows fully. But cap-loss exposure overall constrains how much referendum a district can pass before voters revolt.
For suburban high-growth districts (Hamilton Southeastern, Carmel Clay, Westfield Washington), cap loss is much smaller. These districts have more headroom to pass referendums and capture the revenue.
Patterns from the May 2026 results
A few observations from the May 2026 referendum cycle:
1. Renewals pass more easily than new asks
Renewals of existing referendums (Pike, Lawrence, Carmel Clay) generally passed. Voters who've been paying the rate for years aren't surprised by a renewal.
2. High-growth suburban districts pass capital bonds
Districts with documented enrollment pressure (Hamilton Southeastern, Westfield Washington, Brownsburg) passed capital referendums for new construction. Voters in these districts see the capacity issue at their kids' schools and approve.
3. Rural new asks are mixed
Smaller, rural districts asking for new operating referendums have mixed results. Local political dynamics matter; the districts with strong superintendent leadership and clear communication tend to pass.
4. Marion County urban districts struggle more
Center Township and IPS service areas have been historically reluctant to pass new referendums. Cap-loss math means homestead voters often don't see direct benefit from referendum passage (their bill is already cap-bound), even though the district benefits.
What this means for residents
Inside a district that passed
- Your tax bill rises by the referendum rate × your net AV
- Your school district has 7–8 years of insulated operating revenue above the freeze
- Real per-pupil spending grows or stabilizes through the referendum term
- You'll re-vote when the referendum expires
Inside a district that failed
- Your tax bill is flat or modestly lower (assuming SB 1 mechanics)
- Your school district faces service or staffing cuts within 1–3 years
- Re-runs are likely at November 2026 or May 2027 elections
Inside a district that didn't have a referendum on the ballot
- Your school district is operating on regular levy + freeze constraints
- Watch for 2026–2027 referendum announcements — most growth-oriented districts will be back on a ballot within the next two years
What to do
- Confirm your district's result through your county election officials or the Indiana DOE.
- Calculate your 2026 referendum tax if your district passed: net AV (post-deductions) × referendum rate.
- Review your fall 2026 tax bill — referendum lines are itemized separately.
- If your district has a referendum coming in November 2026 or 2027, evaluate the merits and the cost before voting.
- If you're considering buying in a district with active or expiring referendums, factor the referendum tax (and renewal risk) into your underwriting.
Related reading
- Indiana SB 1 reform: levy freeze mechanics
- The hidden cost of property tax relief: SB 1 LIT replacement
- Indiana property tax caps and circuit breakers
- Marion County's $300M cap loss and IPS funding
- Indiana property tax rates by county 2026
- Hamilton County 2026 assessment growth: Carmel and Fishers
- Marion County 2026 certified tax rates: district-by-district