By Lilly Buist / editor in chief
Earlier this year, Indiana legislators passed Senate Bill 1 (SEA1), a bill intended to benefit individuals by providing a $30 credit towards property tax bills. While this will benefit homeowners, schools and other government units will bring in less money next year in property tax revenue, significantly affecting the NPCS and surrounding districts.
According to NPCS superintendent Dr. Gina Pleak, SEA1 will change “how the state funds education and how schools can use their budgets.”
“Starting in 2028, schools will no longer receive Local Income Tax (LIT) funding. For NPCS, that change will mean about $500,000 less revenue beginning in 2028,” Pleak said.
However, Pleak assured students that any changes won’t affect extracurriculars or classroom opportunities.
While New Palestine students may not be significantly affected in the near future, SEA1 particularly negatively affects school districts in the surrounding area, such as the Beech Grove City Schools (BGCS).
BGCS superintendent Dr. Laura Hammack worries about how SEA1 will affect her school district’s Operations Fund. Due to the budget changes, BGCS will not receive any money in its Operations Fund, which covers non-classroom expenses such as transportation, maintenance, technology, capital projects, and the district administration office.
“Without this revenue stream, the financial stability of these essential services is at risk,” Hammack said.
Due to this change, BGCS plans to transfer 15% of its Education Fund revenue to their Operations Fund, which is the maximum percentage permitted by law.
“Many districts do not need to make this transfer and are able to direct all of their Education Fund resources into the classroom,” Hammack said. “Unfortunately, Beech Grove City Schools does not have that option. In order to cover essential expenses such as utilities and fuel for transportation, we are forced to divert money away from teacher compensation, student supplies, and curriculum.”
Hammack has worked hard to make sure the community understands just how her school district will be impacted by this bill.
“Over the past several months, I have shared presentations with all of our faculty and staff in each Beech Grove school building, outlining the specific ways these changes affect our district,” Hammack said. “I also provided an initial analysis during our State of the Schools address in July, and I recently presented the same information to our Beech Grove Ambassadors group, which meets regularly throughout the school year.”
In October, BGCS held a community-wide Town Hall to make sure community members understand the situation.
Hammack believes that if people “stay engaged” in what is happening, the community will continue to support the school district to help them get through this difficult time.
“What gives me hope is that every time we’ve faced a challenge, Beech Grove has rallied together—whether it’s through volunteering, mentoring, supporting a classroom project, or simply showing up for our kids,” Hammack said. “Members of surrounding communities, like New Palestine, can also be allies in advocacy, ensuring that lawmakers understand how these funding decisions impact all Hoosier students. At the end of the day, our community’s love and care for its children is our greatest asset. That spirit will carry us forward, even through these incredibly difficult times.”
