The Michigan City Area Schools Board of Trustees approved a resolution on Tuesday evening to propose a new operating referendum for the November 3, 2026 ballot.
Before considering an operating referendum, MCAS spent several years carefully reviewing district operations, reducing expenses, reorganizing staffing, and responsibly managing taxpayer resources while working to protect students’ educational opportunities. Those efforts have helped the district navigate financial challenges while continuing to serve students and families.
Recent changes to Indiana’s school funding system, including Senate Enrolled Act 1 (SEA 1), combined with declining enrollment, property tax caps, rising operational costs, and increasing demands on school services, have created new long-term challenges for districts across Indiana, including MCAS.
Michigan City Area Schools is one of many Indiana school districts evaluating operating referendums in response to the statewide funding changes affecting local school operations.
“Recent changes to SEA1 have created new financial challenges for school districts,” said School Board President Marty Corley. “This referendum will allow our community to determine how Michigan City Area Schools can continue meeting the needs of our students while planning for the future.”
If approved by voters, the proposed referendum funding would provide up to $10 million annually, or $80 million over eight years, to help sustain student programs and services, transportation, building safety, student health and behavior services, daily operations, and the retention of high-quality educators and staff. Every dollar generated by the referendum would remain within Michigan City Area Schools and could only be used to support the district and its students. The referendum would also support the district’s long-term financial stability as MCAS navigates increasing operational costs and changes to state and local funding.
The proposal indicates a maximum rate of $0.2998 per $100 of assessed property value over the eight-year term. Under Indiana Law, school districts must seek voter approval for the highest possible rate they may need during the referendum’s term. District leaders anticipate recommending a much lower rate in the early years and strategically adjusting as necessary to address financial needs. If approved, the School Board of Trustees would annually set the referendum rate and a spending plan outlining how referendum funds would be used during the budget year.
MCAS has consistently demonstrated a commitment to fiscal responsibility while maintaining high-quality educational programs and services for students. Recently, the district identified more than $2 million in ongoing cost reductions through staffing adjustments, operational efficiencies, reduced expenditures, and other cost-saving measures while minimizing the impact on students and classrooms.
“Our priority is to continue to ensure every one of our students has access to a safe, supportive, and excellent educational experience,” said Superintendent Dr. McCollum. “We look forward to providing our community with factual information and opportunities to learn more about the proposed referendum.”
Community organizations, groups, members, and neighborhood associations interested in learning more about the proposed referendum may attend a community meeting or request a presentation from the superintendent by completing the online request form. Meeting dates, presentation requests, financial information, and frequently asked questions are available at educateMC.net/2026-Operating-Referendum.