/>iIn the meantime, we want to alert our non-public school corporation clients to a key, time-sensitive change: SEA 1’s expansion of the definition of a “controlled project,” which brings previously exempt projects within the scope of Indiana’s petition-remonstrance and referendum requirements.
Many local government entities have previously undertaken capital projects which were outside the scope of these statutory processes. However, SEA 1 now extends these voter-triggered mechanisms to cover a broader range of political subdivisions and projects, including those initiated by cities, towns, counties, and special districts such as library districts, fire protection districts, and redevelopment districts.
Subject to the controlled project exceptions provided in law, these new categories of controlled projects will apply to any projects:
Approved by a resolution of the non-school corporation governmental entity adopted on or after July 1, 2025; and
Expected to be financed, in whole or in part, by bonds or leases paid from that governmental entity’s debt service fund.
These projects may be subject to the petition-remonstrance process or a mandatory referendum process in accordance with the below:
For Cities, Towns, and Counties:
| Current Debt Service Fund Tax Rate | Project Requirements |
| Less than $0.25 | Not subject to petition-remonstrance process or referendum process. |
| Greater than $0.25 but less than $0.40 | Subject to petition-remonstrance process if requested by community. |
| Greater than $0.40 | Must be approved via referendum. |
For All Other Political Subdivisions** (Except Public School Corporations):
| Current Debt Service Fund Tax Rate | Project Requirements |
| Less than $0.05 | Not subject to petition-remonstrance process or referendum process. |
| Greater than $0.05 but less than $0.10 | Subject to petition-remonstrance process if requested by community. |
| Greater than $0.10 | Must be approved via referendum. |
** Category includes municipal corporations, such as library districts, fire protection districts, special service districts, airport authorities, and all other separate local governmental entities that can finance projects through bonds or leases paid from ad valorem property taxes, and all special taxing districts, including, but not limited to, park districts, sanitary districts, and redevelopment districts.
However, governmental entities can avoid triggering the petition-remonstrance or referendum process under SEA 1 by taking the following steps on or before June 30, 2025:
- Adopting the necessary ordinance or resolution approving the project and its financing; and
- Holding any necessary public hearings related to the project and financing.
If both steps are completed by June 30, 2025, your project will not be subject to the new requirements.
Please note that due to other changes in SEA 1, referenda for controlled projects may only be on the ballot in general elections, so if your upcoming project is subject to a mandatory referendum under the new rules, it will not be on the ballot until November 2026.
