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Senate Enrolled Act 1 (SEA 1) Takes Being Underfunded to a New Level

Future-Focused Finances: Fast Facts

THE IMPACT OF SEA1

  • The impact of SEA affects every student, teacher, and family in MV.
  • SEA 1 drastically decreases the Operations Fund revenue: in 2026, there is an additional loss of $1 million and this loss is sustained through 2030.
  • As a result of SEA 1, Local Income Tax (LIT) revenue will be eliminated in 2028. Currently, LIT provides approximately $1.2M in Operations Fund revenue.
  • Tax caps are approximately 29% of the total operations levy for MVCSC, which is nearly $3M of uncaptured funds. This loss impacts revenues each year.
  • SEA 1’s NAV cap was not created for fast-growing districts like MVCSC. The NAV cap prevents schools from using the full property taxes from new homes. Each year the cap remains, the funding gap grows and compounds. Fast-growing districts like MVCSC need immediate support for capacity—teachers, classrooms, buses, and safety upgrades.
  • Schools are now required to pass any new debt through a public vote on election day if the Debt Service Rate is over $0.70. MV’s has consistently decreased through the years from $1.33 in 2018 to $ .79 in 2026.

Growing Fast

MVCSC's growth rate in 2024-2025 was 4.7%, and is projected to continue. In early 2025, over 50 new subdivisions were proposed, approved, or under construction in Vernon and Buck Creek Townships.

One of the Lowest Funded Districts

Of the Indy Metro area school districts, the combined dollars-per-student funding for Education and Operations shows MV ranked in the bottom 25% based on 2026 data. Without the current Operating Referendum, MV would rank nearly dead last.

SEA1 Decreases MV's Funding Further

Senate Enrolled Act 1, passed during the 2025 legislative session, further exacerbates MVCSC's longstanding underfunding challenges.

FINANCIAL REALITY

  • Student needs are increasing, but funding is decreasing. Since 2019, English language learners increased 900%, students with disabilities increased 33%, and free or reduced lunches increased 20%.
  • Revenue is delayed for new students and new homes. If two students move into the MVCSC district in November, they immediately begin riding our buses, using our classrooms, and accessing school resources. However, MVCSC does not receive student tuition funds until the following April. Property tax funding is not received for a year and a half. New Homestead Deductions further offset property tax revenue. As a result, school districts must absorb the costs of growth long before the funding arrives.
  • MVCSC has a high diligence in reviewing all expenditures, including reducing a few positions through attrition and identifying efficiencies in supply purchases, among other cost-saving initiatives.
  • Despite revenue challenges, MVCSC has committed to staff raises and staff retaining a job. MVCSC’s collective retention rate is 97%.
  • MVCSC leaders engage with legislators at the statehouse to explain MVCSC’s unique funding situation with our growth.

LOOKING AHEAD

  • Mt. Vernon High School is projected to need an expansion in 2028.
  • Collaboration with our community is vital to protect the future of local education programs and opportunities, which have a great affect on property value.
  • Minimizing taxes is important, but not at the expense of lessening the funding support for our students, teachers and school community.
  • State-elected officials can create exceptions for growing schools like MVCSC.