Education Funding

Indiana Shifts School Costs Away From Local Tax Rolls

By Michele McNeil — March 25, 2008 1 min read
  • Save to favorites
  • Print

Capitol Recap offers highlights of the legislative sessions. Precollegiate enrollment figures are based on fall data reported by state officials for public elementary and secondary schools. The figures for precollegiate education spending do not include federal flow-through funds, unless noted.

Indiana

Gov. Mitch Daniels

Republican
Senate:
17 Democrats
33 Republicans

House:
51 Democrats
49 Republicans

Enrollment:
1.6 million

The Indiana legislature in its recently completed session passed sweeping changes to the state’s property-tax system that give substantial breaks to homeowners by shifting the costs of running schools entirely from local tax rolls to the state. Before the change, about 15 percent of school districts’ general operating funds, or about $2 billion statewide, came from local property taxes. Now, that $2 billion will be picked up by the state.

The measure also caps the amount a homeowner’s property-tax bill can increase, which could further limit the flow of such revenue into schools. Property taxes will still help pay for school construction. The tax breaks, the top item on Republican Gov. Mitch Daniels’ agenda, will be funded by raising the sales tax from 6 percent to 7 percent.

Under the legislation, which was approved on March 14, the final day of the 2008 session, districts would also be required to get voter approval for high school building projects of at least $20 million, and elementary and middle school projects of at least $10 million.

This was not a budget year for Indiana, which runs on a two-year spending plan.

See Also

See other stories on education issues in Indiana. See data on Indiana’s public school system.

Related Tags:

A version of this article appeared in the March 26, 2008 edition of Education Week

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Leadership in Education: Building Collaborative Teams and Driving Innovation
Learn strategies to build strong teams, foster innovation, & drive student success.
Content provided by Follett Learning
School & District Management K-12 Essentials Forum Principals, Lead Stronger in the New School Year
Join this free virtual event for a deep dive on the skills and motivation you need to put your best foot forward in the new year.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Privacy & Security Webinar
Navigating Modern Data Protection & Privacy in Education
Explore the modern landscape of data loss prevention in education and learn actionable strategies to protect sensitive data.
Content provided by  Symantec & Carahsoft

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Inside a Summer Learning Camp With an Uncertain Future After ESSER
A high-poverty district offers an enriching, free summer learning program. But the end of ESSER means tough choices.
5 min read
Alaysia Kimble, 9, laughs with fellow students while trying on a firefighter’s hat and jacket at Estabrook Elementary during the Grizzle Learning Camp on June, 26, 2024 in Ypsilanti, Mich.
Alaysia Kimble, 9, laughs with fellow students while trying on a firefighter’s hat and jacket at Estabrook Elementary during the Grizzly Learning Camp on June, 26, 2024 in Ypsilanti, Mich. The district, with 70 percent of its students coming from low-income backgrounds, is struggling with how to continue funding the popular summer program after ESSER funds dry up.
Sylvia Jarrus for Education Week
Education Funding Jim Crow-Era School Funding Hurt Black Families for Generations, Research Shows
Mississippi dramatically underfunded Black schools in the Jim Crow era, with long-lasting effects on Black families.
5 min read
Abacus with rolls of dollar banknotes
iStock/Getty
Education Funding What New School Spending Data Show About a Coming Fiscal Cliff
New data show just what COVID-relief funds did to overall school spending—and the size of the hole they might leave in school budgets.
4 min read
Photo illustration of school building and piggy bank.
F. Sheehan for Education Week + iStock / Getty Images Plus
Education Funding When There's More Money for Schools, Is There an 'Objective' Way to Hand It Out?
A fight over the school funding formula in Mississippi is kicking up old debates over how to best target aid.
7 min read
Illustration of many roads and road signs going in different directions with falling money all around.
iStock/Getty