Why Should Delaware Care?
School referendums are the only time that Delawareans can have a direct say in their taxation rate, but they also make it harder for school districts to meet rising costs. A recent spike in failed referendums suggests a changing outlook from the public on funding any request from school districts.
The Indian River and Smyrna school districts both went out for a referendum this month, and both failed to gain the support of residents, continuing a growing string of failed referendums statewide in recent years.
Both of the districts aimed to raise the money for their ongoing operations, including for retaining and recruiting educators. The Indian River School district asked voters to fund $22.3 million, while Smyrna sought $5.4 million.
The districts’ decision to hold a referendum came after districts throughout Delaware have struggled to retain educators with competitive salaries amid an ongoing national teacher shortage.
The request also coincided with the ongoing re-assessments throughout the state.
IRSD rejects first referendum in eight years
The Indian River School District’s referendum for $22.3 million was denied by 53% of voters Thursday. It was the first request from the district in eight years.
The results follow a day of voting in the downstate district where a large number of retirees live.
Several voters who spoke with Spotlight Delaware while leaving the polls Thursday expressed frustration with the district’s request and some said it pointed toward the need for higher development fees to support local schools.
Millville Town Councilman Bob Wisgirda also said that he didn’t believe the referendum would pass because residents were also “very paranoid” about the impact of the county’s ongoing reassessments.
If approved, the referendum would have resulted in a tax increase of $1.2105 per $100 of assessed property value, but the tax increase was estimated to be lowered to $0.057 per $100 of assessed value to remain revenue neutral after Sussex County residents’ property values are reassessed and adjusted.
The current district tax is about $3.23 per hundred, meaning the increase is about 37%.
The district has said that regardless of whether the referendum passed, it would need to have a reduction in force (RIF) or layoffs to cut costs. Those cuts will likely be deeper if Indian RIver doesn’t pass a second referendum later this year.
“We are obviously disappointed with the result of the referendum but understand that this is part of the school funding process in Delaware,” IRSD Superintendent Jay Owens said in a statement Thursday night. “We certainly respect the opinions and wishes of our public and understand the uncertainty caused by the recent property reassessment and rising residential energy bills. However, without the passage of a current expense referendum, the district faces difficult decisions regarding staff and programs. As expenses continue to outpace revenue and cause further deficit spending, our administration and Board of Education will explore numerous options, including hosting another referendum in 2025. Despite this setback, we will continue to strive to provide our students with premier educational services.”
Steve — a voter who asked to only use his first name — said he voted “no” because he believes there are other ways the district can raise money without holding a referendum, including charging impact fees to developers.
School district finance leaders have fought for Sussex County Council to implement a voluntary school assessment (VSA) or impact fees.
Jason Hale, the director of operations at the Cape Henlopen School District, previously told Spotlight Delaware that these fees can actually reduce taxes by preventing a district from holding a referendum.
Smyrna residents also reject referendum
Thursday’s rejected vote in Indian River is the second failed referendum in just a week, after nearly 60% of voters rejected Smyrna’s March 15 operational referendum asking for $5.4 million. It marks the second year the district has seen a failed referendum.
The Smyrna School District said its request would go toward recruiting and retaining educators, enhancing school safety, improving technology to ensure that each student has access to a device, and purchasing new band uniforms.
More than half of the funds raised would have gone toward staff salaries to better compete with other districts. Teachers would have received a salary increase in both the first and second year, helping to push the district from the lowest tiers of pay in New Castle County.
The district has not responded to Spotlight Delaware’s request for comment, which asked if the district anticipated laying off educators, like Indian River, because of the failed referendum.
This is the second year that Smyrna has failed to pass its referendum. In March 2024, the district attempted to raise around $5.5 million a year to hire constables, deliver mental health supports, and offer competitive salaries.
Its second referendum attempt in June 2024 passed by just 22 votes, allowing the district to build a new school, costing residents about an extra $1.44 per month
Smyrna also did not respond to Spotlight Delaware’s question about whether the district would go out for another referendum this year, or if it would consider taking advantage of the ongoing reassessment process.
