The Whole Truth
2010 Lebanon Community Schools Referendum

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The Lebanon School Board approved a $40 million capital projects referendum for the November 2010 ballot. To support the referendum, the Support Lebanon Students Political Action Committee (SLSPAC) has a website at http://www.supportlebanonstudents.com/Home_Page.php. Both the Lebanon School Board and SLSPAC have merely been advocates for the dreams and schemes of the Lebanon Schools administration and the Greater Lebanon Community Vision Committee. To provide voters The Whole Truth about the 2010 Lebanon Community Schools Referendum, Watchdog Indiana has developed this web page.

Any community organization claiming to educate voters about the 2010 Lebanon Community Schools Referendum is not getting the job done if they invite only the SLSPAC to make a presentation - Watchdog Indiana should also be invited to make certain there is a balanced presentation.

Please send an E-mail to taxless3@comcast.net if you wish to join a Watchdog Indiana Planning Committee to help provide The Whole Truth to voters this November.

Taxpayers deserve The Whole Truth. The number of Lebanon students receiving free lunches/textbooks has steadily increased from 33% to 38% to 39%. The parents of these students cannot afford to have their property tax or monthly rent payment increased to support an extensive nice-to-have high school renovation primarily designed to attract the "high income families" desired by the Greater Lebanon Community Vision Committee.

1. It is unlikely that a "gateway" high school with all the "bells and whistles" will attract high-income families to Lebanon.

The SLSPAC asserts that the referendum "makes our schools more competitive in attracting families and businesses." To understand what this means, one has to recognize that a primary goal of the developer-dominated Greater Lebanon Community Vision Committee is to make Lebanon a "destination community" for high-income families. The SLSPAC has no problem increasing the taxes or rental payments of those Lebanon families whose students receive free lunches/textbooks no matter how unlikely it is that a "gateway" high school with all the "bells and whistles" will attract high-income families to Lebanon.

Listed next are some facts for the four public school corporations in Boone County.

Note 1: The Passing Both statistics represent the percent of school corporation students passing the spring ISTEP+ tests for BOTH English/Language Arts and Mathematics in Grades 3-8 (see http://www.doe.in.gov/istep/2010/docs/Public_Report_Corp.xls).

Note 2: Graduation Rate, Free Lunches/Textbooks, and Total Expenditure Per Pupil data can be found at http://mustang.doe.state.in.us/SEARCH/s3.cfm.

Note 3: Ratio of Student Instructional Expenditures data can be found at http://www.in.gov/omb/2495.htm.

Note 4: Student Instructional Expenditure Per Pupil Three-Year Average = (Total Expenditure Per Pupil Three-Year Average) (Ratio of Student Instructional Expenditures to Total Expenditures)

Lebanon Community School Corp.
2009 Percent of Students Passing Both ELA and Math = 70.05%
2010 Percent of Students Passing Both ELA and Math = 75.14%
2008-09 Graduation Rate = 90.3%
Percent of Students Receiving Free Lunches/Textbooks
    2006-07 = 33%    2007-08 = 38%    2008-09 = 39%
2008-09 Total Expenditure Per Pupil Three-Year Average = $10,500
2008-09 Ratio of Student Instructional Expenditures to Total Expenditures = 54.5%
2008-09 Student Instructional Expenditure Per Pupil Three-Year Average = $5,723

Zionsville Community Schools
2009 Percent of Students Passing Both ELA and Math = 86.51%
2010 Percent of Students Passing Both ELA and Math = 87.83%
2008-09 Graduation Rate = 96.5%
Percent of Students Receiving Free Lunches/Textbooks
    2006-07 = 4%    2007-08 = 4%    2008-09 = 5%
2008-09 Total Expenditure Per Pupil Three-Year Average = $11,700
2008-09 Ratio of Student Instructional Expenditures to Total Expenditures = 48.6%
2008-09 Student Instructional Expenditure Per Pupil Three-Year Average = $5,686

Western Boone Co. Com. School Dist.
2009 Percent of Students Passing Both ELA and Math = 71.31%
2010 Percent of Students Passing Both ELA and Math = 76.97%
2008-09 Graduation Rate = 93.2%
Percent of Students Receiving Free Lunches/Textbooks
    2006-07 = 22%    2007-08 = 26%    2008-09 = 29%
2008-09 Total Expenditure Per Pupil Three-Year Average = $9,000
2008-09 Ratio of Student Instructional Expenditures to Total Expenditures = 55.5%
2008-09 Student Instructional Expenditure Per Pupil Three-Year Average = $4,995

Sheridan Community Schools
2009 Percent of Students Passing Both ELA and Math = 68.62%
2010 Percent of Students Passing Both ELA and Math = 73.31%
2008-09 Graduation Rate = 85.8%
Percent of Students Receiving Free Lunches/Textbooks
    2006-07 = 27%    2007-08 = 29%    2008-09 = 31%
2008-09 Total Expenditure Per Pupil Three-Year Average = $9,100
2008-09 Ratio of Student Instructional Expenditures to Total Expenditures = 62.3%
2008-09 Student Instructional Expenditure Per Pupil Three-Year Average = $5,669

Statewide Averages
2009 Percent of Students Passing Both ELA and Math = 61.32%
2010 Percent of Students Passing Both ELA and Math = 66.02%
2008-09 Graduation Rate = 81.5%
2008-09 Percent of Students Receiving Free Lunches/Textbooks = 44%
2008-09 Total Expenditure Per Pupil Three-Year Average = $10,700
2008-09 Ratio of Student Instructional Expenditures to Total Expenditures = 57.8%
    Note: Trails the U.S. average by 5 percentage points.
2008-09 Student Instructional Expenditure Per Pupil Three-Year Average = $6,185

A review of the Boone County Public School Facts leads to the observations listed next.

a. All four Boone County public school systems have ISTEP+ test results that are better than the statewide average.

b. Lebanon schools are ranked third in the county on ISTEP+ test results (behind Zionsville and Western Boone).

c. The percent of Lebanon school students passing the spring 2010 ISTEP+ tests for BOTH English/Language Arts and Mathematics in Grades 3-8 improved significantly to only 75.14%.

d. All four Boone County public school systems have a graduation rate better than the statewide average.

e. Lebanon schools are ranked third in the county by graduation rate (behind Zionsville and Western Boone).

f. Considerably fewer Zionsville students receive free lunches/textbooks than do Lebanon, Sheridan, and Western Boone students.

g. Lebanon schools are ranked third in the county in the Ratio of Student Instructional Expenditures to Total Expenditures (behind Sheridan and Western Boone), and lag behind the statewide and national averages.

h. There is no correlation between Student Instructional Expenditure Per Pupil and education results.

It is easy to conclude that the sensible voter should be cautious about supporting the Lebanon Schools referendum because the high-income families that the Lebanon School Board and Greater Lebanon Community Vision Committee want to attract at any cost are NOT likely to choose the Lebanon schools over the Zionsville schools. High-income families are much more likely to send their children to the Zionsville schools where only 5% of students receive free lunches/textbooks than to the Lebanon schools where 39% of students receive free lunches/textbooks. Zionsville education outcomes merit a B+ consideration while Lebanon education outcomes have improved only to a "solid C."

2. We need constitutional property tax cap protection first.

The Lebanon School Board and the SLSPAC have consistently failed to reveal that if the $40 million capital projects referendum passes this November, the property taxes necessary to support the $40 million bond issue will NOT be subject to the 1% homeowner property tax cap.

Lebanon's taxpayers are trying to recover from the nation's longest recession since the Great Depression. An important part of this recovery - to keep Lebanon's taxpayers from having to make terrible choices between nutritious meals, life-enhancing medications, and keeping their home - is a more fair and affordable tax burden. 

The most important factor in establishing a more fair and affordable tax burden is Public Question #1 that voters statewide have the opportunity to pass this November to amend the Indiana Constitution to (1) make the 1% - 2% - 3% property tax caps permanent and (2) protect homeowner property tax deductions from legal challenge. No prudent taxpayer should consider the merits of any referendum that will establish a property tax obligation outside the property tax caps UNTIL and UNLESS the Constitutional Amendment is passed. Complete information about the Constitutional Amendment can be found at http://www.finplaneducation.net/caps_top_twenty.htm.

According to the SLSPAC Tax Calculator for the proposed $40 million school referendum, the following annual property tax burdens will be created OUTSIDE the 1% homeowner property tax cap for the average Lebanon homeowner (who lives in a home valued at $90,900): $85 for 2012 through 2017, $129 for 2018 through 2020, $178 for 2021 through 2023. 

The Indiana General Assembly WILL erode the property tax caps protection if the Constitutional Amendment does NOT pass, and the average Lebanon homeowner will be left with disappearing property tax protection on top of a costly bond payment. Information on how past property tax protection has quickly disappeared can be found at http://www.finplaneducation.net/betrayal_incompetence.htm. 

To help ensure a more fair and affordable tax burden for Lebanon's taxpayers, the sensible voter should be cautious about supporting any Lebanon Schools referendum UNTIL and UNLESS the Constitutional Amendment is passed this November. If the Lebanon School Board cared about the tax burden of the economically stressed parents of their students, they would not have approved a costly capital projects referendum until AFTER the Constitutional Amendment in Public Question #1 passed this November.

3. The Lebanon Community School Corporation does not need to worsen its below average ratio of student instructional expenditures to all other expenditures. 

Legislation passed by the Indiana General Assembly in 2006 requires the Indiana Office of Management and Budget to report on the progress (or lack of progress) of Indiana school corporations in improving the ratio of student instructional expenditures to all other expenditures. The latest Student Instructional Expenditure Report is for the 2008-09 School Year and can be found at http://www.in.gov/omb/2567.htm.

The statewide Student Instructional Expenditures ratio (Dollars-to-the-Classroom) in 2008-09 was 57.8%, which trails the US average by 5 percentage points. The 2008-09 Student Instructional Expenditures ratio for the Lebanon Community School Corporation is less than both the state and national averages and is only 54.5%. Lebanon schools are ranked third in Boone County in the Student Instructional Expenditures ratio (behind Sheridan and Western Boone).

If the $40 million school capital projects referendum does NOT pass this November, Lebanon schools debt will start to be retired and taxpayers will get more for their money in the form of a better Student Instructional Expenditures ratio. The proposed referendum would just take more taxpayer dollars that are not directed to student instruction.

4. The $40 million school capital projects referendum will increase the Lebanon Community School Corporation property tax rate because additional school capital projects are likely before 2023. 

IF the Lebanon schools debt is allowed to come off the books the next few years WITHOUT a new $40 million capital projects bond issue, the average Lebanon homeowner (who lives in a home valued at $90,900) will pay $85 less in annual property taxes dedicated to school debt service payments for 2012 through 2017, $129 less for 2018 through 2020, and $178 less for 2021 through 2023. 

The proposed $40 million capital projects bond issue is structured so that repayment is scheduled to take place in 13 years where the new debt is phased in over time in such a way to keep the overall rate stable by replacing the retiring current debt with new debt. The SLSPAC slide presentation on how this repayment scheme, which is NOT subject to the 1% homeowner property tax cap limit, will supposedly keep the overall school property tax rate stable can be found at http://www.supportlebanonstudents.com/uploads/taxrateimpact.pps.

The proposed repayment scheme for the $40 million capital projects bond issue will keep the overall school property tax rate stable ONLY if there are no other new capital projects undertaken by Lebanon's schools for the next 13 years. What are the chances that the Lebanon School Board will NOT accommodate Lebanon's school administrators with new capital projects between now and 2023?

5. The property tax savings that would result from NOT passing the $40 million capital projects referendum will help offset future property tax and utility rate increases.

The property tax savings that would result from NOT passing the $40 million capital projects referendum will help offset the property tax increases and utility rate increases sought by the Greater Lebanon Community Vision Committee to support Lebanon's I-65 annexation and "gateways" scheme.

1. The Pay 2010 Total Property Tax Rate for those property owners living within the Lebanon city boundaries prior to the I-65 annexation is 2.72% more than if there were NO annexation. Center Township property owners that were included in the I-65 annexation pay 25.28% more and Perry Township property owners included in the annexation pay 38.48% more. These property tax increase details can be found at http://www.finplaneducation.net/lebanon_property_increases.htm.

2. Ostensibly to properly serve the I-65 annexation area, Lebanon will construct a new public safety building on Hall-Baker Road that will cost more than $2.25 million. Much of the cost of this new building will come from accumulated funds generated by the Lebanon Business Park Tax Increment Financing (TIF) District. Also, Lebanon is planning to use the $2 million generated annually by its TIF District to help fund the nonsensical "gateways" construction at Lebanon's I-65 exits. IF Lebanon eliminated its TIF District instead of using it to help pay for the dreams and schemes of the Greater Lebanon Community Vision Committee, the property taxes of Lebanon's property owners would decrease almost 11%. Details about the Lebanon Business Park TIF District can be found at http://www.finplaneducation.net/lebanon_TIF_district.htm.

3. The Lebanon Business Park TIF District proceeds are not likely to be enough to fund the extravagant I-65 exit "gateways" desired by the Greater Lebanon Vision Committee. Lebanon is expected to increase property taxes to pay for a bond issue to provide the tens of millions of dollars that the unneeded "gateways" will cost.

4. The property tax savings that would result from NOT passing the $40 million capital projects referendum are particularly needed to help offset the alarming Lebanon utility rate increases that will be needed to provide the $20.7 million required to extend water and sewer service into Lebanon's I-65 annexation area by 2012. Supposedly, I-65 annexation utility rate increases were to be avoided by utilizing recoupment agreements from developers who would build 3,486 homes (with an average sales price of $145,000) and 40 commercial developments (with an average $18 million net assessed value) within the annexation area by 2019. There were supposed to be 439 new homes and 6 new commercial developments within the annexation area by now - NO new homes and NO new commercial developments have been built. Failure to realize the ridiculous growth projections within the I-65 annexation area will result in alarming Lebanon utility rate increases to extend water and sewer lines into the annexation area. Details about Lebanon's I-65 corridor annexation can be found at http://www.finplaneducation.net/I-65_corridor_annexation.htm.

6. The Lebanon School Corporation student population is not likely to grow much in the foreseeable future.

The proposed referendum would add 8 classrooms to the existing 40 academic classrooms at Lebanon High School. These additional classrooms are not REQUIRED because the Lebanon School Corporation student population has plateaued and is not likely to grow much in the foreseeable future. 

Lebanon's Planning and Zoning Department Director reported on May 7 that 67 new single-family construction permits were issued in 2005, 35 in 2006, 36 in 2007, 20 in 2008, 5 in 2009, and 3 in 2010. Whatever new home construction that occurs in Boone County is not likely to happen in Lebanon to a significant extent any time soon. 

The LHS special education teachers can continue to efficiently share open rooms during the school day. The nice-to-have LHS reconfiguration can be postponed without affecting student achievement.

7. The plans for integrated presentation technology at Lebanon High School cannot be reasonably expected to improve student performance. 

The plans for integrated presentation technology at LHS, where notes made on an electronic whiteboard are downloaded to some kind of student hand-held device, are a costly energy-consuming frill that cannot be reasonably expected to improve student performance. Better results would be obtained in a cost-efficient manner if volunteer community resources were used to provide mature homework partners for all first, second, and third grade students. LHS students would be better prepared to learn if they mastered language arts and math before the fourth grade in an environment where the community clearly signaled that education is highly valued (see http://www.finplaneducation.net/HELP.htm). Additional ceiling-mounted presentation technology in LHS classrooms and enhanced technology in the LHS media center could be part of a much smaller bond issue that falls WITHIN the property tax caps.

8. Marginal security improvements are not justified.

Whatever marginal security improvements would be realized by reconfiguring the LHS layout do not justify the hefty $40 million price tag. Disturbed persons could still breeze right by the repositioned reception area and gain ready access to the school interior. Providing all LHS rooms with panic buttons and installing school cameras that are monitored at a central location could be part of a much smaller bond issue that falls WITHIN the property tax caps.

9. Mechanical, electrical, and plumbing improvements could be part of a much smaller bond issue.

Mechanical, electrical, and plumbing improvements at Lebanon High School and Central Elementary are estimated to save from $250,000 to $330,00 a year in energy costs. This equates to a 160-year payback period for a $40 million bond issue! Any NEEDED utility improvements could be part of a much smaller bond issue that falls WITHIN the property tax caps.

CONCLUSION

The informed voter should be cautious about supporting the $40 million Lebanon Schools referendum because the possible deleterious taxpayer effects of this poorly-timed costly referendum offset the minimal contribution to improved educational achievement that may be achieved. A much smaller bond referendum within the property tax caps can achieve some of the higher-priority desired results. In addition, the provision of a "gateway" high school with all the "bells and whistles" will do little to attract to Lebanon any new high-income residents that decide to move to Boone County. The average Lebanon resident cannot now afford to foot the $40 million bill for the hopes and dreams of narrowly-focused educators and developers.

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This page was last updated on 09/03/10 .