FTCSC Referendum Information

Why are Franklin Township’s schools struggling financially?

Despite recent unprecedented academic success, Franklin Township is in a dire financial situation for three main reasons:

1)      Franklin Township receives the least amount of money per student from the state compared to all the school districts in Marion County. In the state, we rank 306 among the 349 public school districts and charter schools in dollars-per-child funding. Our school district has been underfunded by the state for years.

2)      With the state’s economy struggling, the State has had less money to fund education than in years past. So, not only does Franklin Township get less money from the state on a per pupil basis compared to most other school districts, the actual amount we get per child has decreased as well.

3)      Another way in which a school district receives a large amount of its funding is through local property tax revenue. With the recently enacted 1% tax cap placed on property taxes, Franklin Township Schools will receive 30% less money ($9.7 million) than it did from property taxes in 2010. That is in addition to the money the school district lost as a result of the 2008 property tax reductions. 

Aren’t these the same problems other school corporations are facing?

The problems are similar, but the situation is much worse in Franklin Township because of two compounding reasons.

1)      Franklin Township remains largely a residential and rural community. With little commercial and industrial development to help generate property tax income, the responsibility of generating income for local governments, including the school district, has been and remains on the Township’s residents.

2)      With little commercial and industrial development and for so many other reasons, Franklin Township has been a desirable place to live for years. Thus, enrollment in its schools rose 46% in seven years. We were the fourth fastest growing school corporation in the State of Indiana in that time period. However, the state’s school funding formula did not keep up with our rapid growth. (This is one of the reasons FTCSC joined a lawsuit filed by two other Indiana school districts against the state. It is hoped that this lawsuit will make the school funding formula more equitable.)

Why did we build new schools and increase our debt?

New schools were built as enrollment grew by 2,598 students from 2000-2007.  It was an enrollment increase of 46% in seven years.  We were the fourth fastest growing school corporation in the State of Indiana in that time period.  When the previous administration initiated the last major construction project, no one could foresee the impact of property tax caps.

Wasn’t the stadium wasteful spending?

The current administration and school board inherited the stadium and the negative public perception it has created. The Flashes Football Stadium was built in 2004 at a one-time cost of $4.3 million. While it adds little to our current budget deficit, we realize that it has created the perception that FTCSC built too much, too fast, and too lavishly. Under the leadership of this school board and administration, the FTCSC has not initiated a single new construction project.

Why are there new signs on the stadium?

The stadium has not been renamed.  Our partnership with Ray Skillman Chevrolet allows for prominent display of their signs as supporters of Franklin Township athletics.  We are pleased to be partners with Ray Skillman Chevrolet.  They are a local business that strongly supports many aspects of our community. 

Is artificial turf being added to the football field?

There are no plans to add artificial turf to the football field. 

The stadium has not been renamed.  Our partnership with Ray Skillman Chevrolet allows for prominent display of their signs as supporters of Franklin Township athletics.  We are pleased to be partners with Ray Skillman Chevrolet.  They are a local business that strongly supports many aspects of our community. 

Is artificial turf being added to the football field?

There are no plans to add artificial turf to the football field. 

Why don’t we cut administrators’ salaries?

Central administration salaries have been cut more than 36% in the last four years.  Principals and other administrators have not received a base salary increase since 2006. Administrators’ health insurance benefits were reduced this year, which means that administrators are being paid less than they were in 2006. Superintendent Dr. Bourke and his staff are among the lowest paid administrators in the county. Dr. Bourke remains the lowest paid superintendent in Marion County.  He also asked to have his salary reduced another $10,000 next year. Our administrative expenditure, as a percentage of operational costs, is one of the lowest in the State of Indiana!

Why do we have all of that technology?

The technology and televisions in each school were part of the planned costs of new construction and renovations.  What we know for certain is that the career and college readiness of every child in our community will depend upon their ability to use and learn from technology.  Failing to make new technologies available to students will handicap their future. 

Will transportation really be eliminated if the referendum fails?

We will have no choice but to cut transportation. The 2011 property tax caps will reduce our revenue by $9.7 million. After our required debt commitments and utilities are paid, there will be no money left to fund transportation. We cannot charge students for transportation costs because the State Attorney General says such transportation fees are unconstitutional.  Simply, we cannot provide a service which we cannot fund.

Why target art, music, and physical education for elimination?

We are doing everything we can to not increase class sizes. By reducing special teachers in these curricular areas, we can reduce our expenditures by a minimum of $1.1 million without further increasing elementary class sizes.  Classroom teachers will provide instruction in these special areas, but parents need to appreciate the fact that a typical general education classroom teacher does not the extensive training required to fully implement the outstanding instruction that our students are accustomed to receiving in art, music and physical education.   

If the referendum passes, how much is it going to cost me?

The median home value in Franklin Township is $143,500.  With typical deductions, the net assessed value of the median home is $61,025.  A tax rate increase of.75 (cents) per $100 will cost the median homeowner $38.14 per month if the proposed referendum passes in May 2011.  We will soon provide a “calculator” on our website that will allow any homeowner to enter the value of their home and determine their exact costs.

How long will we have to pay more taxes?  How do we know our taxes won’t go up again?

The law only allows the referendum tax rate to be levied for seven years.  At the end of seven years the tax rate must be approved again by a referendum vote or be eliminated.  The Indiana Constitution now provides that homeowners’ property taxes cannot exceed one percent of gross assessed value without their approval by referendum. 

What happens if State funding improves or we win the lawsuit?

A successful referendum in support of schools establishes a maximum referendum tax rate.  If funding for FTCSC improves from other sources, the referendum tax rate will be reduced.  The Department of Local Government Finance only allows us to levy the funds necessary to operate our schools. 

If the referendum passes, will things go back to the way they were?

No.  A successful referendum allows us to maintain programs and services as they are today, not what we were able to provide in the past. 

If the referendum passes will there still be future expenditure reductions?

In 2009 the State of Indiana took over full funding of all school districts’ General Fund budgets.  This effectively tied school funding to the economy.  With the recent downturn in the economy, our Governor ordered a $2.4 million reduction to our funding in 2010, which will not be restored in 2011.  Increases in our costs, or further reductions in funding, could easily lead us back to future expenditure reductions, even if the referendum passes.  

Why seven years?

The state statute that establishes the referendum process limits the term of increased funding obtained through property taxes to a maximum of seven years.  As the economic condition of Indiana improves over the next seven years we hope that our community’s assessed valuation and our level of funding from the State improves.  Without improvement in the revenue available to FTCSC, we would have to return to taxpayers to extend the funding.