A record 38 school districts in Indiana are seeking additional funding via ballot referendums this Nov. due to the expansion of property tax cuts, according to Chalkbeat Indiana.
The driving force behind these referendums is Senate Enrolled Act 1 (SEA 1), which went into effect on Jan 1, 2025, and limited the amount of property taxes local units of government could gather from their residents, according to Fox 59. This put a financial strain on public school districts, as they could lose significant portions of their funding, according to the Indiana Coalition for Public Education (ICPE).
State Representative and Chair of the Indiana House Education Committee, Bob Behning, said SEA 1 has provided Hoosiers, especially those on fixed incomes, with much-needed tax relief.
“People, regardless of income level, generally don’t like paying property taxes,” Behning said. “…it is probably the most despised tax that we have out there today, so there has been a consistent and large number of people saying we need to look at ways to reduce dependence on property taxes.”
Behning said he is not opposed to referendums in general, as he feels they give taxpayers more direct say in whether they want to provide additional funding to their schools. However, Professor of Political Science at the University of Indianapolis, Laura Merrifield Wilson, pointed out that there “is no guarantee” that voters will pass these referendums and that there aren’t many other avenues for schools to obtain the funding they need. Wilson also stated that she does not believe legislators intended to cause financial strife for public schools by passing SEA 1, but they did know it was a likely consequence.
UIndy Director of Undergraduate Studies for the School of Education, Elizabeth Turner, said that as funding becomes harder to come by, it is likely that schools will be consolidated, class sizes will grow larger and programs will be cut, which will inevitably result in students having fewer educational pathways.
“So, when you look at funding, transportation, athletics, fine arts, they’re going to cut the things that aren’t on [standardized tests] first,” Turner said. “You just don’t have as many options. The school can’t offer as much because they don’t have… the ability to support [these programs].”
Turner said that increasing class sizes would affect younger children and those with special needs the most, but she would also note that those in advanced placement programs would likely suffer as well. Wilson and Turner both believe larger classes will make things harder for teachers and students and will likely result in a lower-quality education, reflected by a drop in standardized test scores.
Behning had a more positive outlook, stating that he believes that SEA 1 will ultimately have a positive impact for Hoosiers, although it will likely need a few tweaks along the way. Additionally, Behning said he frequently talks with educators about the issues they are facing, helping them explore possible solutions and informing himself about what legislative changes may be needed. He also said schools in Indiana generally have “very nice facilities,” but he does not believe public school districts always spend taxpayer money in the “most judicious” way, and that legislators and taxpayers need to ask whether the extra funding requested is truly necessary. Behning also said he frequently talks with educators and that he believes those conversations have positive outcomes most of the time.
Wilson and Turner both expressed personal concerns as parents of children in public schools. Wilson said the increase in property taxes in recent years is a real issue that needs to be addressed, but she also believes schools must be funded properly to provide all children with ample opportunities to learn and grow.
“I want to make sure my children and all the children in our schools have every opportunity for a high-quality education, and money isn’t tantamount to quality, but it is tantamount to opportunity,” Wilson said. “…I recognize why the state legislature passed the law that it did; people were very concerned about property tax. They had gone up a lot in recent years, but the reality is you get what you pay for, and if we’re not going to be paying for high-quality public schools, we simply won’t get them in the future.”
