by Mackenzi Klemann, Indiana Capital Chronicle
September 23, 2026
Dozens of Indiana’s public school superintendents say their districts will cut teaching and support staff in the coming years to contend with the financial fallout of property tax reform, according to a new survey from the Indiana Coalition for Public Education.
This is the second year the volunteer advocacy group surveyed superintendents about the financial outlook of their schools in the wake of Senate Enrolled Act 1, which set forth a series of major property tax reforms.
The survey went out to 290 superintendents throughout the state in August; 144 responded.
Other solutions raised in the report are creative: one superintendent said they planted prairie grass instead of mowing to save money on fuel, removed televisions to save on electricity and launched a student-run business to generate new income.
38 Indiana school districts to seek property tax referendums this fall
Nearly all of the respondents said they anticipate negative financial impacts from SEA 1, while a clear majority expressed similar concerns about universal school choice and the level of funding the General Assembly will allocate to public schools next year.
Schools would need anywhere from 1% to 25% in one-time funding increases to maintain the level of services expected by the community, plus an average of 6% in ongoing increases thereafter, the report found.
Jim May, a volunteer with the ICPE, described the findings as “more disheartening than surprising.”
“We’ve seen very large numbers of schools reduce staff, both support staff and teaching staff,” he said. “We’re seeing cuts to services. We’re seeing a lot of rural corporations saying things like classroom sizes are growing.”
How schools are contending with shortfalls?
Many districts are eliminating support staff and teaching roles to make up for budget shortfalls.
Half of respondents said they’ve already cut support staff, while another 16% will do so soon and 30% are considering the same.
Forty-six percent of superintendents said they are eliminating some teaching roles. That number rises to 93% when accounting for districts that are actively considering or will take similar action.
Nearly 40% have issued or will issue a new general obligation bond, though many others are considering the option to raise more support.
Others are considering delayed maintenance, reduced staff raises, cuts to transportation services, electives and field trips or consolidation. One raised the possibility their district won’t be able to sustain student internships, career pathways or dual-credit offerings.
In rural districts, superintendents say they worry lawmakers are pressuring them to consolidate or close schools.
“I feel like funding is bleeding the small schools dry,” one superintendent wrote. “I am skeptical that this is simply a push to consolidate.”
“Our commitment to live within our means in the past, with no referendum and super low tax rates, has caught up with us,” another said. “I think larger schools with better tax bases have given the rest of us a black eye. We haven’t spent haphazardly, but are punished like we did.”
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Why so few referendums?
Far fewer districts are seeking a referendum than initially expected this year, despite it being a record year for referendum questions on the ballot.
Responses to the group’s superintendent survey offer a clue as to why so few took this route: 39% of respondents cited a lack of support within their communities.
This is particularly true for rural districts, which were more likely to cut staff than pursue a referendum when compared to urban and suburban districts.
Still, survey responses suggest more referendums could appear on the ballot in 2028 — the next year schools can do so.
“We cannot continue to do more with less,” one superintendent wrote in response to the survey, which did not identify respondents.
“Funding has got to keep pace with salary requirements, safety concerns, increased utility costs, and increased equipment and supply costs. In a day and age where we are required to do more and more to support our students and their families, we lack the financial support to do so. At some point in the very near future we will all have no choice to run a referendum because of the inadequate financial support. And on top of all of those increased costs, in my district 51% of our students do not have English as their native language — it does take more to educate them.”
Others lamented the state’s move to universal access for private school vouchers, which became available to all Hoosier families regardless of income for the first time this year.
“It is a shame that our Indiana public schools are being unnecessarily defunded by our general assembly,” one superintendent wrote, saying they were advised to eliminate $2.5 million from the district’s budget.
“Our state’s super majority has chosen to create a manufactured financial crisis by way of funding their voucher program, supporting the growth of their charter school program, and the growth of statewide online schools/platforms. Billions of dollars are being funneled away from our public schools to support these private projects.”
Several respondents suggested private schools should be subject to similar accountability measures as public schools as a condition to accept publicly funded vouchers.
One superintendent went a step further, suggesting any new or existing law should apply to equally to public and private schools supported by tax dollars.
“I do not believe it was a wise financial decision to prioritize paying for the private education of wealthy families,” the superintendent wrote.
“That said, the decision has been made and Indiana is now a 100% school choice state. If this is the case, then we need to level the playing field so all school entities are operating on a level playing field. Any current or new law that applies to public education should be applied to any other school system that accepts state dollars.”
