School officials in Indiana are pushing back at the state’s new property tax relief efforts by claiming the reforms are destabilizing their budgets to the point that employees are being laid off and services are being reduced.
The Indiana Capital Chronicle reports that a new statewide survey released by the Indiana Coalition for Public Education polled 148 of the state’s 290 traditional public school corporations on how the Senate Enrolled Act 1 (SEA 1) impacted local school budgets in the months since its passage. The survey found 95.3% of Indiana districts expected SEA 1 to negatively affect their funding in 2025, and 99.3% predicted impacts in future years.
The survey found that 65.3% of Indiana districts already reduced or will reduce support staff, while 55.8% have already reduced or will reduce teaching staff.
The survey noted large suburban school districts were concerned about their ability to accommodate growth without property tax-fueled operational dollars, while small rural districts worried about “existential threats” to staffing and operations. Urban districts said the reduction in funds would exacerbate their problems in dealing with aging buildings and higher concentrations of high-needs students.
Indiana schools rely on local property taxes to pay for essential personnel and operational services. One superintendent polled for the survey complained the “negative impacts of SEA 1 cannot be overstated,” adding that “uncontrollable cost increases in utilities, transportation and insurance cannot be addressed adequately” under the new levy limits.
