SCHOOL OPERATING REFERENDUMS AND FINANCIAL CONDITION: A QUANTITATIVE ANALYSIS OF INDIANA SCHOOL DISTRICTS’ FINANCIAL CONDITION

Abstract

This quantitative research was conducted to understand the relationship between public school district financial condition and the success or failure of an operating referendum in Indiana. In the decade that followed the Great Recession, schools experienced a period of financial austerity. Policymakers established the operating referendum as a local solution for increasing school funding, and an increasing number of Indiana school district leaders sought referendums to fund programs and operations. This study analyzed referendum results and the financial health of the Indiana public school districts that sought operating referendums between 2015 and 2019. The researcher conducted a descriptive analysis of schools’ financial condition using a national, practice-based framework, then conducted a binary logistic regression to determine whether differences in financial condition impact the outcome of referendum results. Descriptive data indicated that districts with a stronger financial condition were more likely to pass operating referendums. The regression findings indicated that overall financial condition does not predict referendum success or failure. Enrollment growth was the only financial condition indicator that predicted the successful passage of an operating referendum. School leaders were not more likely to propose or pass a referendum in districts with a worse financial condition. Policymakers concerned about Indiana public schools’ financial condition should consider alternatives to the current operating referendum law. Leaders of school districts in need of additional funding should consider proposing an operating referendum, but should account for the district’s financial condition when developing voter education strategies.