Indiana Tax Overhaul Sparks Wave of School Funding Referenda Statewide

More than one-third of Indiana school corporations plan to ask voters for additional funding this fall through referenda, according to Ball State economist Michael Hicks. The wave of ballot measures is a direct consequence of HEA 1001, the state's tax restructuring law, which gave cities and counties the option to raise local income tax rates but did not extend that option to school corporations — leaving them to seek voter approval instead.

The law also limits local housing mandates and regulations, connecting the tax overhaul to housing affordability policy statewide.

Blackford County's next major step in implementing HEA 1001 is an August 26 county meeting on local income tax rate-setting. Under the law, municipalities with populations under 3,500 — including Dunkirk — will lose independent control of their public safety local income tax revenue to the county council.

Source: Journal Gazette / Hicks column (July 29, 2026); Fox59 (July 27, 2026)