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Voters by a comfortable margin Tuesday renewed an operating referendum for the Duneland School Corporation that will help them stay ahead of financial challenges posed by property tax changes made by state law.

The unofficial final tally saw the referendum pass, 3,261 to 2,007 votes (61.9 to 38.1%).

The Duneland School Corporation’s 8-year referendum renewal was the only issue on Tuesday’s ballot in Porter County. Only 18%, or 5,283, of the 30,176 eligible registered voters participated, according to Porter County’s online election results portal. Most of the voters live in Chesterton as the school district encompasses Westchester, Liberty and Jackson Townships.

Chesterton High School social studies teacher Bob DeRuntz announced to a gathering of around 60 supporters at Gelsosomo’s Pizzeria Tuesday night the final total after the last voting center, Brummitt Elementary School, reported its results. From the first early votes counted, the referendum, which will sustain educational and operational funding, was ahead by a large margin.

“I am pleased the Duneland community continues to put kids first,” said Superintendent Chip Pettit.

Pettit said he hated having to ask taxpayers to make up for the loss of tax revenue.

A fiscal analysis performed by the state’s Legislative Services Office on the impact of Senate Enrolled Act 1 estimated that Duneland Schools could lose about $8.3 million in property tax revenue over the next three years, starting in 2026.

But Pettit said he believes those supporting the referendum recognized the alternative would have been “devastating” for the schools. If the referendum failed, Duneland schools would have had the option to return to voters in November 2026. Pettit said ultimate failure would have meant Duneland Schools would have had to find a way to cut 15 to 20% from its budget.

Duneland School Board President Brandon Kroft has been through his share of elections. When he was young, Kroft remembers being at the Porter County Courthouse on election night when they tallied votes on a chalkboard for his father, John Kroft, when he successfully ran for the Duneland School Board.

“I am very proud to be a Chesterton grad tonight, knowing how this town supports our kids and our schools,” Kroft said.

There was no organized opposition to the levy, but in the closing days more people expressed opposition on social media. The last referendum renewal in 2019 was easily approved with 73% of the vote.

“You have your doubts before election night. You start second-guessing everything there is to second-guess,”  Kroft said. “When it comes in like this, you’re just very proud.”

Indiana Senate Enrolled Act 1 enacted property tax reforms that will provide breaks for homeowners but cap future revenue growth for municipal governments and school districts.

The referendum had been formerly pegged at 22 cents per $100 of assessed property value. On Tuesday’s ballot, the referendum was set at 39 cents per $100 of assessed property value.

The reason is that the state changed the way property taxes are calculated, with homeowners getting larger deductions on their property valuation. As a result, governmental entities will receive less.

For a resident with a home assessed at the median value of $350,000, they would still pay between $25 to 40 less in property taxes next year with the levy’s approval, school district officials have said.

The average savings from the new property tax law are around $300. In essence, the voters decided to give back to the schools a large portion of the projected savings created by Senate Enrolled Act 1.

The new referendum levy would raise a maximum of $16.1 million. The language for the two prior referendums in 2012 and 2019 didn’t state a specific amount of money to be raised.

Currently, the levy raises $8.9 million per year. Operating levy referendums don’t cap property tax revenue, so the school district has seen an increase in yearly receipts from when the referendum was first approved.

Lynn Kwilasz, the assistant superintendent and chief financial officer, said during the budget hearing on Oct. 6 that voters approved the referendum, she favored putting aside $5 million in a “rainy day” fund so the district can be financially prepared.

Jim Woods is a freelance reporter for the Post-Tribune.