Voters rebuffed a seven-year $7.5 million operating referendum Tuesday for the Lake Station Community Schools.
Tuesday's crushing defeat at the polls could lead to teacher layoffs and larger class sizes, school officials said before the vote. In unofficial totals, the referendum lost by about a 3 to 1 margin.
The small district of about 1,500 students expects to lose $1.1 million in state funding over the next two years; that fueled the bid for the referendum. Lake Station operates three elementary schools and Edison Jr.-Sr. High School.
The district lost 10 teachers who weren't replaced. Some were laid off and some retired. Eighteen 18 support staff, such as teacher aides, were laid off.
School officials said the referendum would provide a boost of about $700,000 annually to stem teacher and staff layoffs, as well as reductions in students courses and programs.
The referendum, one of four in Indiana, divided the community. A political action committee called Yes for Our Children's Education supported its passage and another group called Just Vote No rallied to oppose it.
Supporters of the school referendum had a visible presence at each polling place, though there were few voters for them to greet.
Opponents, meanwhile, used bullhorns and signs to chant their message to voters and passing motorists, many who honked in support.
Opponents said school officials were using scare tactics to win votes and the increase in taxes would hurt businesses.
John Bastin of the Vote No committee, said district officials haven't used budget money wisely and the school administration is top-heavy.
Bastin, head of the Just Vote No committee, said he was glad residents made their voices heard. He said the vote was about both sides having the chance to come together at the same time to get the word out about their position.
"We are very happy we won," Bastin said.
Freelance reporter Carrie Napoleon contributed.