INDIANAPOLIS (WLKI)- Dozens of Indiana public school superintendents say their districts are considering cuts to teachers, support staff and student services as they prepare for the financial effects of the state's property tax reform law.
The Indiana Coalition for Public Education surveyed 290 superintendents in August and received 144 responses. Nearly all respondents said they expect Senate Enrolled Act 1 to have a negative financial effect on their districts.
The law, approved in 2025, made significant changes to Indiana's property tax system. Supporters say the legislation provides relief for homeowners, while school leaders and local government officials have warned that lower property-tax revenue growth could force difficult budget decisions.
According to the survey, half of participating districts have already reduced support staff, while 16 percent expect to do so soon. Another 30 percent said they are considering similar reductions.
Forty-six percent of respondents said their districts have eliminated teaching positions. When including districts that are considering or expect to make those cuts, the number rises to 93 percent.
Superintendents also identified transportation, electives, field trips, maintenance projects, employee raises, internships and dual-credit programs as areas that could be affected by budget shortfalls.
Some school leaders said rural districts may be especially vulnerable because they have smaller tax bases and fewer alternatives for raising local revenue. While some districts are considering referendums, many respondents said they believe their communities would not support one.
The coalition's report also found that school leaders remain concerned about the expansion of private-school vouchers and uncertainty surrounding future state education funding. The group estimates SEA 1 will affect public school finances over the next several years.