What is an operating referendum, who receives the money and who is allowed to vote for it?

A school corporation may conduct a referendum to create a property tax levy for purposes of  supplementing the revenue it receives from the state funding formula. The Delphi Community  School Corporation (DCSC) Board of Trustees passes a resolution that states that the proposed  referendum would be used to supplement existing revenues received from the state of Indiana  for the purpose of funding daily educational operations, academic and support programs,  managing class sizes, and for any other educational needs of the school corporation. 

An operating referendum creates an additional levy that goes into a special fund titled  “referendum fund” for a period not to exceed eight years. However, a referendum tax rate may  be re-imposed or extended under the law only if approved by the voters of the district. Only one  operating referendum can be in place in a school district.  

Indiana law requires Delphi Community Schools hold the election in May or November. If the  election occurred in 2023, the school corporation would be required to pay election costs for  rural areas not holding a municipal election. No election costs are charged if the election occurs in  2022

The revenue is collected by the county through the property tax bills of property taxpayers in the  school district. The money does not pass through the state, but goes directly to the school for 

 the purposes of supplementing the education and operation funds of the school corporation.  The education fund primarily pays for faculty and classroom staff.  

The referendum is only on the ballot of voters registered to vote in the DCSC district. Registered  voters living outside of the DCSC district will not be voting on the referendum. The reduced  referendum tax rate will take effect only if a majority of the voters vote “Yes” to the ballot  question. If it passes, the reduced referendum rate goes into effect next year.