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Indiana school leaders report staffing cuts amid property tax changes

a row of yellow school buses parked in a parking lot

INDIANAPOLIS, Ind. (WOWO) — Dozens of Indiana public school superintendents say their districts are cutting or considering cuts to teaching and support positions as they adjust to changes in school funding following the state’s property tax overhaul.

According to the Indiana Capital Chronicle, the Indiana Coalition for Public Education surveyed all 290 public school superintendents in August, with 144 responding. Nearly all respondents said they expect Senate Enrolled Act 1, the property tax reform law approved in 2025, to negatively affect their districts financially.

Half of the responding superintendents said their districts have already reduced support staff, while 16% said cuts are coming and another 30% are considering them.

The survey found 46% of respondents reported eliminating some teaching positions. When districts considering or planning similar reductions are included, that figure rises to 93%.

District leaders also reported considering delayed maintenance, smaller staff raises and reductions to transportation, electives and field trips. Some districts are looking at consolidation or issuing bonds to address funding needs.

The property tax law was designed to provide relief to taxpayers while limiting future property tax revenue growth for local governments and school districts. When lawmakers approved the legislation in 2025, supporters noted that revenue for many local units would continue to increase, but at a slower rate than under the previous system.

The survey also found rural districts were more likely to consider staff reductions than pursuing voter-approved property tax referendums.

Thirty-eight Indiana school districts have placed referendum questions on the November ballot. Under changes included in the property tax law, school referendum questions can now appear on ballots once every two years.

The full survey findings were reported by the Indiana Capital Chronicle.

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