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MSD of Decatur Township Referendum
On Feb. 12, 2019, the locally elected Metropolitan School District of Decatur Township Board passed a resolution establishing that the Corporation will pursue a referendum that would, if passed by the voters residing in the district, allow for a new referendum tax rate not to exceed $0.2890 and to discontinue the current referendum.
This referendum was passed by the voters of Decatur Township on May 7, 2019. The MSD of Decatur Township made a commitement to the community that funds from the 2019 operating referendum (estimated at the time to be $5.3 million) would support student transportation, electricity, building maintendance, and student and staff safety. MSD of Decatur Township is dedicated to ensuring tax dollars are used wisely and effectively. The district’s monthly school board meetings are open to the public, and the referendum fund is included in the monthly financial report.
How are referendum funds currently allocated? Here are some more details (updated September 2025) about the MSD of Decatur Township referendum fund. The MSD of Decatur Township has consistently used less than the maximum allowable rate approved by taxpayers since 2023.
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Referendum FAQ
A referendum is when eligible voters in a community decide directly on a specific question.
In 2010, after Indiana placed limits on property taxes (reducing how much money local governments and schools could collect), the state legislature created a referendum process. This allows school districts to put a funding question on the ballot, giving voters the opportunity to decide whether to provide additional financial support for their schools.
The MSD of Decatur Township is running an Operating Referendum. Operating referendums can be used to cover day-to-day costs.
Decatur Township uses referendum funds to fund:
- Student Transportation
- Electricity
- Building Maintenance
- Student & Staff Safety
Indiana has had property tax caps in place since 2009. Property taxes are calculated using the Net Assessed Value (NAV) of your property: 1% for residential homes, 2% for apartments and farmland, and 3% for commercial property. For homeowners, this means you pay 1% of your property’s NAV. If your tax bill has gone up, it’s likely because your property’s assessed value has increased.
The MSD of Decatur Township does not set the NAV. What the district can manage is the tax rate. The school board has been fiscally responsible by lowering rates—both the Debt Service tax rate of .6683 (decreased by 26.4% since 2021) and the Referendum tax rate, which has decreased by 14.27% since 2021.
Funds from the 2019 Operating Referendum support:
- Student Transportation
- Electrcity
- Building Maintenance
- Student & Staff Safety
Schools cannot use construction funds to pay for referendum expenses, and they cannot use referendum funds for construction projects. Building renovations and expansions are paid for through the Debt Service Fund. Thanks to the careful financial management of our Board and district leaders, the Debt Service tax rate has actually decreased since 2021 by 26.4%. New debt is not issued until a previous debt is paid in full.
School Finance in Indiana
School funding in Indiana can feel complicated, but here’s a simple way to think about it: money comes into schools from different places, and by law it has to be kept in separate “buckets.” Each bucket can only be used for certain things. That’s why you might hear that a district has money to buy new buses or update a building, but still may struggle to pay teachers more or add staff—it depends on which bucket the money is in.
Where the Money Comes From
Federal Grants: These are special dollars for things like school lunches, special education, or extra help for students from low-income families.
State Funding: This is the biggest piece and pays for most classroom instruction. It’s based mainly on the number of students enrolled.
Local Property Taxes: Approved by the community, these funds help keep schools running, maintain buildings, and sometimes (if a referendum passes) help pay teachers and staff.
The Buckets of School Finance
Here’s what each “bucket” pays for:
Education Fund – Teacher salaries, benefits, and classroom learning costs.
Operations Fund – Transportation, utilities, building maintenance, and daily operations.
Debt Service Fund – Loan payments for building projects and renovations.
Exempt Debt Fund – Certain older debt payments not limited by property tax caps. Decatur Township does not have an "Exempt Debt Fund."
Referendum Fund – Extra funds approved by local voters that can be used for specific purposes like safety, staffing, or instruction.
Why Buckets Matter
Because money has to stay in its assigned bucket, schools can’t just move funds around. That means even if there’s money available for new buses or building upgrades, it can’t be shifted into the teacher pay bucket.
Understanding how these buckets work helps explain why school budgets sometimes feel confusing. It also shows why community support—like voting for school referendums—can make such a big difference for students and teachers.
The MSD of Decatur Township submits expenditures every 6 months to the IN Dept of Education.
Those public reports can be viewed at the Finance Dashboard at EdData.
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