Understanding the Referendum: What's Being Asked For and Why

I want to begin by acknowledging something very important: conversations about taxes, school funding, and referendums can feel overwhelming — especially right now on the heels of a confusing reassessment season. Families are juggling rising costs everywhere, and when a school district brings forward a referendum, it’s reasonable to have questions, concerns, or even strong opposition.  

Rather than asking our community to absorb a single, lengthy presentation all at once, I will be sharing a series of weekly blog posts between now and the February 9 vote, each focused on one clear question at a time. Alongside these blogs, you’ll also begin to see short video "referendum reels" released on the Laurel School District website and our official social media channels, so you can engage with the information in the way that works best for you.

If at any point you want to see everything in one place, the entire referendum PowerPoint presentation is available on our website as well. Whether you read one post, watch one video, or explore everything in depth, my hope is simply that you feel informed — not rushed.

What Is a Referendum?

In Delaware, school districts cannot raise local taxes on their own. Any increase to local school funding must be approved directly by voters through a referendum. This structure is designed to ensure that decisions about local funding remain in the hands of the community.

There are only two limited exceptions:

• The Match Tax, which allows districts to provide the local match required for certain state-funded initiatives.
• The Tuition Tax, which helps cover legally required services for students with disabilities who must be educated outside the district.

Because those services are mandated by law, they do not require voter approval.

All other local tax increases — including those used to operate schools day to day — must be approved by the community.

Capital vs. Current Expense: Why This Can Be Confusing

There are two very different types of school referendums, and it’s completely understandable that this distinction can cause confusion.

• A capital referendum funds buildings, renovations, and major construction projects.
• A current expense referendum funds the daily operation of a school district — staffing, transportation, utilities, technology, safety, and student services.

A simple way to think about it is this:

A capital budget builds the building (think mortgage)
A current expense budget runs the building (think monthly bills)

Many Laurel residents remember voting in 2012, when the community approved a capital referendum. That vote allowed us to build and improve facilities — something the district remains grateful for. However, that referendum did not increase the operating budget.

That is why it is accurate to say that Laurel has not passed a current expense referendum in forty years. The last time the community voted to increase funding for daily operations was in 1985.  

When people ask, “How can this be the first one in 40 years when we voted in 2012?” — it’s a fair question. The answer is simply that the two referendums serve very different purposes.

At a Glance:

• This referendum is for current expense, not construction.
• Laurel has not passed a current expense referendum in forty years.
• Over the last forty years, the cost of living in this country has nearly tripled. Schools have faced those same pressures — salaries, benefits, utilities, transportation — yet Laurel has not had a current expense referendum during that entire time.
• The proposed increase is $0.0742 per $100 of assessed value.
• For an average Laurel home assessed at $230,527, that increase equals about $171 per year.
• The funding request focuses on stabilization, compensation, and essential operations.
• A future blog will explain why this amount was chosen, how it compares regionally, and how it was projected responsibly over time.

What Comes Next

My goal in sharing this information is to educate and inform, and yes, to persuade. I also recognize that some in our community may care little about how schools are funded or about the structural disadvantages Laurel faces under the state’s funding model. I understand that, and I can respect that stance.  

Even so, it is my responsibility to be clear about the realities we face and the choices before us. This referendum involves real trade-offs and real consequences, and the decision deserves a full and honest explanation.

Thank you for reading — and for staying engaged.

Next week’s blog will focus on what current expense funding actually pays for, and why it is the foundation of a functioning school district.

Until then, remember, on February 9, Big Red Says Vote FOR the first time in forty years.

With Pride,

Dr. Shawn Larrimore, Superintendent