The referendum ballot language is established by Indiana law and approved by the Indiana Department of Local Government Finance. The language voters will see in November 2026 was established by legislators in Indianapolis in 2025 and uses required language that does not always clearly reflect the actual impact of the referendum.The referendum question as approved reads:“Shall Carmel Clay Schools increase property taxes paid to the School Corporation for no more than eight (8) years for the purpose of sustaining educational and operational funding stability in response to reductions in property tax revenue, including renewing and replacing existing referendums, supporting student safety, health, and well-being, including the employment and retention of school resource officers, supporting and retaining teachers and staff, funding academic and support programs, and meeting the educational needs of all students, by imposing a property tax rate that does not exceed $0.4274 and results in a maximum annual amount that does not exceed $61,981,519? If this operating referendum public question is approved by the voters, for a median residence of $500,000 the property's annual property tax bill would increase by $1,062 per year. The most recent operating referendum public question proposed by the school corporation was held in 2023 and passed.”The purpose of the referendum is to prevent a significant funding decline and preserve the educational excellence our community expects. The proposal would repeal and replace the two existing referendums with one eight-year operating referendum and establish a maximum rate of $0.4274 per $100 of net assessed value. The additional revenue is intended to offset the impact of recent changes in Indiana property tax law and supplement education funding so Carmel Clay Schools can maintain teacher salaries, class sizes, academic programs, student safety and support services.Breaking down the ballot language, the first section reads:“Shall Carmel Clay Schools increase property taxes paid to the School Corporation for no more than eight (8) years for the purpose of sustaining educational and operational funding stability in response to reductions in property tax revenue, including renewing and replacing existing referendums…”The word “increase” is required as part of the ballot language. The proposal is not simply about adding new programs or services; it is about sustaining what Carmel Clay Schools currently provides.The ballot asks voters to approve an eight-year referendum that combines and continues funding previously approved by the community. It would renew the school safety referendum first approved in 2019, which is set to expire, and combine it with the operating referendum approved in 2023 into a single question.This combined approach is being proposed in response to recent changes in state tax laws that will significantly reduce local school funding beginning next year. The goal is to maintain stable funding so Carmel Clay Schools can continue providing the level of education, safety and student services our community currently expects without major reductions caused by declining revenue.The second section explains what the referendum funding would support:“…supporting student safety, health, and well-being, including the employment and retention of school resource officers, supporting and retaining teachers and staff, funding academic and support programs, and meeting the educational needs of all students…”This language was developed by Carmel Clay Schools based on the Revenue Spending Plan approved by the Carmel Clay Board of Trustees. The district must review and approve a spending plan each year, and referendum spending is audited against that plan by the State Board of Accounts. The referendum is intended to preserve the educational opportunities, safety resources and student support systems currently available to students and families.The final section is required by state law and can be confusing when compared with the projected tax impact:“…by imposing a property tax rate that does not exceed $0.4274 and results in a maximum annual amount that does not exceed $61,981,519? If this operating referendum public question is approved by the voters, for a median residence of $500,000 the property's annual property tax bill would increase by $1,062 per year. The most recent operating referendum public question proposed by the school corporation was held in 2023 and passed.”It is important to understand that the $0.4274 rate shown on the ballot is the maximum allowable rate, not the rate Carmel Clay Schools expects to use in the first year. Property taxes will not increase $1,062; this amount assumes there is not a current referendum. The estimated first-year rate is approximately $0.30 per $100 of net assessed value. For a median-value Carmel home, the referendum portion of the tax bill is projected to increase by less than $143 per year in the first year. However, after accounting for new state property tax deductions and credits, the overall property tax bill for that same home is projected to decrease by approximately $250 per year.The accompanying chart shows how the projected referendum rate gradually rises as changes in state law reduce the district’s net assessed value, the tax base used to generate referendum revenue. The rate reaches its projected high point around 2031 and then begins to decline. Even as the referendum rate changes, the projections show the overall tax bill continuing to decline because of the significant reduction in taxable assessed value.In short, the 2026 referendum would combine Carmel Clay Schools’ two existing voter-approved referendums into one eight-year referendum, respond to reductions in school funding created by changes in state law, and continue the community’s long-standing investment in its schools.

Yes. Carmel voters approved the current operating referendum in 2023, and under normal circumstances it would continue through 2031.Since that vote, however, Indiana enacted Senate Enrolled Act 1 (SEA 1), which changed the way property taxes are calculated and significantly reduced the local revenue available to school districts. As a result, the 2023 referendum rate will no longer generate the level of funding voters approved to support Carmel schools.At the same time, Carmel’s separate school safety referendum, first approved in 2019, is approaching expiration in 2027. State law now limits school referendum elections to general elections in even-numbered years, making 2026 the practical opportunity to address that funding before it expires.The 2026 proposal brings these two existing voter-approved funding sources together into one eight-year referendum. It would repeal and replace the current operating referendum while renewing the expiring safety referendum, creating one combined funding source going forward.

No. The 2026 referendum would replace Carmel’s two existing referendums, not be added on top of them.Carmel taxpayers currently support a 19-cent operating referendum and a 5-cent school safety referendum, for a combined maximum rate of 24 cents per $100 of net assessed value. If the 2026 referendum is approved, those two existing referendums would be repealed and replaced by one operating referendum.The new referendum is designed to continue the community’s existing investment in Carmel schools while adjusting for the revenue reductions created by SEA 1.

Combining the two referendums creates one stable source of voter-approved funding for teachers, academic programs, student services, school safety, and School Resource Officers.Today, Carmel’s operating and safety referendums are on different schedules. The operating referendum was most recently approved in 2023, while the safety referendum was approved in 2019 and is approaching expiration. Combining them places both on the same eight-year schedule and avoids asking voters to consider separate school funding referendums every few years.Most importantly, the combined approach allows voters to consider the full package of services the current referendums support in one question.

The tax base underneath the referendum is changing because of SEA 1.SEA 1 created new property-tax deductions and credits that reduce the overall tax bill. However, the amount of school property taxes collected are also reduced. That means the same referendum rate will generate less revenue for Carmel Clay Schools over time, even though the rate itself has not changed.Independent modeling by Policy Analytics projects that this impact grows as the new law is phased in. The estimated unrealized revenue attributable to SEA 1 is approximately $6.0 million in 2027, $9.0 million in 2028, $11.8 million in 2029, $14.9 million in 2030, and $18.0 million in 2031.The proposed referendum rate is intended to respond to those growing reductions while allowing Carmel Clay Schools to maintain current staffing, programs, safety services, and student opportunities.

Indiana law requires the ballot to describe an operating referendum as an increase and to show the maximum rate that could be used during the life of the referendum.That wording does not tell the full Carmel story. Carmel taxpayers already support two voter-approved referendums with a combined maximum rate of 24 cents: 19 cents for operating needs and 5 cents for school safety. The 2026 referendum would replace those existing referendums rather than being added to them.The ballot also uses a state-required calculation that does not simply compare the proposed referendum with what a homeowner is paying today. That is why the figure printed on the ballot can look very different from the actual change a homeowner may experience.For a clearer picture of the impact on your property, use the Impact Calculator.

The exact impact depends on your property’s gross assessed value, the deductions and credits you receive, and the referendum rate set for that year.The referendum tax rate is applied to net assessed value—the taxable value remaining after eligible property-tax deductions are applied. Because SEA 1 changes those deductions and adds new credits, the change in the referendum portion of a tax bill is not the same thing as the change in a homeowner’s overall property-tax bill.The rate shown on the ballot is the maximum rate that could be used during the eight-year referendum. District projections anticipate a lower rate in the first year, with the rate reviewed annually by the School Board as SEA 1’s reductions are phased in.

Indiana law requires the ballot to show the maximum referendum rate that could be used at any point during the eight-year term.Carmel Clay Schools has modeled a phased approach because the revenue reductions from SEA 1 grow over several years. The district’s projection begins below the maximum rate and increases as the new deductions are phased in. Under the current model, the maximum rate would not be reached until later in the referendum period.The maximum rate on the ballot is therefore a ceiling, not a promise that the full rate will be charged every year.

The Carmel Clay Schools Board of Trustees sets the referendum rate each year as part of the district's public budgeting process.The ballot establishes the maximum rate the Board may use. It does not require the Board to levy that maximum. Each year, administrators and the Board can review the district's financial needs, net assessed value, state funding, and other available revenue before setting the rate.If financial conditions improve or other funding becomes available, the Board has the ability to use a lower rate.

The 2026 referendum is designed to continue the services supported by Carmel’s existing operating and school safety referendums.That includes supporting and retaining teachers and staff, maintaining academic and student support programs, supporting student safety, health, and well-being, and continuing the School Resource Officer program and related safety services.The purpose is to protect the educational opportunities, staffing, and support systems Carmel students already have—not to create a new collection of programs.

If the referendum does not pass, Carmel Clay Schools would lose the opportunity to replace the expiring safety referendum and would not receive the additional revenue needed to offset the growing effects of SEA 1.District financial projections show that without updated referendum funding, significant reductions would be required. Those reductions could affect staffing, class sizes, academic and support programs, student services, and the safety and well-being initiatives currently supported by referendum dollars.The district has stated that lower-revenue scenarios would still require reductions to staffing and student programs, while the recommended referendum provides the best opportunity to maintain current staffing, programming, and student services.A Yes vote protects the current level of educational opportunity and support available to Carmel students.

Indiana’s school funding formula is determined by the General Assembly and distributes state revenue to public schools on a per-student basis, with additional funding based on factors established by the legislature.Carmel receives among the lowest levels of state funding per student in Indiana. The district has historically relied on locally approved referendum revenue to supplement that funding and maintain the level of educational programming the Carmel community expects.SEA 1 adds another challenge because it reduces local property-tax revenue as well. That means Carmel is facing pressure from both the state funding formula and changes to the local tax base.Only the Indiana General Assembly can change the state funding formula. The referendum gives Carmel voters local control over whether to continue supplementing that funding for their schools.

Carmel Clay Schools reviews its budget annually and is required to balance educational priorities with the revenue available to the district.The challenge created by SEA 1 is not a one-time shortfall. The law reduces the local tax base over several years, and the impact grows as the new deductions are phased in. At the same time, the district continues to face normal costs for teachers and staff, transportation, safety, insurance, utilities, and student services.The district evaluated lower referendum scenarios during the public planning process. Those scenarios still required reductions to staffing and student programs, and some produced recurring budget deficits in later years.The proposed referendum is intended to maintain the programs and services students already receive while continuing annual School Board oversight of spending and the referendum rate.

Indiana school finance law separates school funding into different funds and restricts how those dollars can be used.Money available for debt service and capital projects cannot simply be transferred to pay teacher salaries or other classroom instructional expenses. That means funding used for projects such as school renovations, athletic facilities, or other building improvements is not an alternative source of money for teachers and classroom programs.Carmel Clay Schools has historically managed facility projects through its capital and debt structure without asking voters for a separate construction referendum. The operating referendum supports a different set of needs—people, programs, student services, and school safety.

Property taxpayers within the Carmel Clay Schools district pay the referendum tax. This includes residential, commercial, and rental property owners within the district boundaries.The referendum rate is applied to a property’s net assessed value, which is the taxable value after eligible deductions are applied. Homeowners may also qualify for credits that reduce their final tax liability.Indiana law does not allow a school referendum tax to be charged only to households with children in the schools. Public education is available to the entire community, and the referendum rate applies uniformly to taxable property within the school district.

Registered voters who live within the Carmel Clay Schools district are eligible to vote on the referendum.The referendum will appear on the November 3, 2026 general election ballot for voters residing within the school corporation boundaries. A majority of voters casting a vote on the question must vote Yes for the referendum to pass.

Indiana law limits the use of public school resources to advocate for or against a referendum once it is placed on the ballot.Carmel Clay Schools may continue to provide factual information about the referendum, including what it funds, how the tax rate works, and what the district’s financial projections show. Advocacy asking voters to vote Yes must come from an independent organization rather than the school corporation.School employees may participate in campaign activity on their own time, just like other members of the community, but public resources and work time cannot be used for campaign advocacy.

“Friends of Carmel Schools” is the independent community organization supporting the 2026 referendum.The campaign is made up of parents, educators, alumni, neighbors, and community members who believe strong schools are essential to Carmel’s future. The organization works independently from Carmel Clay Schools to provide referendum information, recruit volunteers, distribute yard signs, communicate with voters, and encourage a Yes vote.Campaign expenses, including this website, yard signs, printed materials, digital communication, and voter outreach, are paid for with private campaign contributions, not school district funds.You can help by volunteering, requesting a yard sign, sharing information with friends and neighbors, or making a contribution to support the campaign.