PORTER TOWNSHIP | If local taxpayers pursue a referendum next year on a proposal to nearly double the size of Boone Grove High School, the $40,000 bill for the special election would be picked up by taxpayers countywide.

Yet school Superintendent Nick Brown said there is no need to hold a referendum to determine if the district can spend beyond its tax cap.

The $34 million school project can be completed within budget, he said.

At issue is a plan to renovate and add more room at the high school and move seventh and eighth graders to the building, he said. Fourth and fifth graders would be moved over to the middle school.

The original $54 million proposal, which included renovations at the middle and elementary school buildings, was well received by the state tax board, Brown said. The board, however, referred the project on to the state tax commissioner without approval and there was concern it would be cut at that level.

The school corporation opted instead to pursue the project under the new state law capping property taxes at no more than 1 percent of a home's assessed value. A public hearing and presentation is planned for 6:30 p.m. Thursday at the high school cafeteria.

Under the new rules, local taxpayers can force a vote on the proposal by collecting 100 signatures, Brown said. If the referendum passes, the cost of the high school project would be paid for in excess of the 1 percent cap.

Brown said the vote is not needed because the school corporation could cover the cost within its existing budget. This approach would increase taxes on homes with a value of $225,000 or more to the maximum 1 percent and the district has the resources to cover the estimated $150,000 exceeding that cap each year.

He said the tax impact would amount to about the same if the referendum passes.