INDIANAPOLIS (WISH) — A record number of Indiana school districts are asking voters to approve property tax increases this November to close budget shortfalls caused by recent state tax relief legislation.

The surge in referenda follows the passage of Senate Enrolled Act 1. While the law aimed to lower property taxes for homeowners after values climbed following the pandemic, it reduced the revenue schools rely on for daily operations. Many districts are now asking voters to restore those funds.

The stakes vary by community. In the Lowell area of Lake County, district officials warned that failing to pass the tax increase would result in the elimination of bus service for students across three townships. Other districts reported that a rejection could lead to staffing cuts and larger class sizes.

“I think it would be up to the districts to communicate what those cuts might look like,” Amelia Pack-Harvey of Chalkbeat Indiana said. She noted that many families would likely see the impact of a failed vote immediately.

The requests come as taxpayers struggle with inflation. Costs for groceries, gasoline, and farming supplies have climbed significantly, leading to organized opposition. The group Americans for Prosperity has launched a website to help residents coordinate efforts against the property tax increases.

“The cost of doing business as a farmer, the cost of running your household has just increased,” Pack-Harvey said, noting that some residents who previously supported schools are now hesitant because of their own financial constraints.

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