A $165 million plan for a new high school in Hammond, Ind., has flunked its first financial test and could be headed for a showdown with property tax-weary voters. The state School Property Tax Control Board voted 6-3 to reject the construction project. The nonbinding recommendation now goes to the Indiana Department of Local Government Finance Commissioner Cheryl Musgrave, who has six months to make a final decision. If Musgrave axes the project, supporters would have to win approval for the new high school via referendum.

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