Bremen Public Schools Brace for Financial Strain Under Indiana’s Senate Bill 1

BREMEN, Ind. -- School leaders in Bremen are preparing for changes ahead after newly enacted Senate Bill 1 takes effect across Indiana, which promises property tax relief for homeowners, but with major implications for public school funding.

Bremen Schools Superintendent Dr. Jim White says the legislation could cost the district roughly $300,000, and that's just the beginning.

“It’s gonna be a lot of tightening as we go, and we’re still trying to figure out the impact on the property tax caps,” White said.

The bill places additional restrictions on a school district’s ability to issue debt, complicating long-term planning and needed maintenance to aging infrastructure.

In response, White purposed a first mortgage financing option with school board approval to move forward on critical projects, including replacing the middle school's outdated HVAC system, a project with an estimated cost of up to $12 million.

“We’re gonna have to juggle between first mortgage or general obligation bonds,” White explained. “But I still want to go as minimally as possible, like a 5½ year period, so the most amount of tax dollars are going into the classroom, not just paying bank interest.”

Among the other improvements White hopes to prioritize include upgrading the front entrance with a more secure and modernized office layout.

Despite the funding hurdles, White remains firm on the district’s responsibility to maintain its facilities for student safety and learning.

“We can talk about a dark and gloomy outlook… but we don’t have any choice but to move forward. We have to maintain these buildings, keep them safe, clean, and acceptable for our children, we’ll find a way, one way or another.”

But his concerns go beyond Bremen.

White fears Senate Bill 1 may lead to school closures elsewhere pointing to the Union School Corporation in Randolph County, which recently shut down, as a sign of what could come.

“If they can close one corporation with a legislative wand, who’s next?” he asked. “There may be a list in the future of schools deemed not economically viable… That should get people’s attention.”

White is set to retire this fall after 11 years as Bremen's superintendent, but he says the full impact of the 400-page Senate Bill 1 remains unclear.