Higher taxes or tighter budget — that is the question for Duneland voters

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Updated: February 13, 2012 9:57PM

Voters in the Duneland School district will decide on higher property taxes or tighter school budgets in the upcoming May primary after the school board unanimously voted in favor of placing a referendum on the ballot.

The school administrators took their case to the public in two forums last week where they pitched the need for higher taxes. Consultants to the school district have estimated cumulative deficits of $40 million if no action is taken.

Duneland voters will be asked to increase property taxes by up to 22 cents per $100 assessed valuation for each of the next seven years. This rate will increase property taxes by approximately $185 per year for an average house priced at $178,800.

The impact on the household is likely to be less. A state loan will be paid off in 2013, which will effectively reduce the rate to 19 cents.

The pension bond issue will be retired in 2016, further reducing the effective rate to 10 cents per $100 assessed valuation for the years 2017 through 2019, when the tax increase will expire.

School Superintendent Dirk Baer asked, “The question is not, ‘what price education;’ we really need to ask, ‘what cost if we don’t have an adequate education?’”

Chesterton resident Jim Jeselnick speaking in favor of the tax noted it should be viewed, “not as a cost, but as an investment.”

The referendum will appear on the May primary ballot. Registered Duneland voters may vote only on the referendum without declaring party affiliation.