Indiana K-12 Schools Face Budget Cuts Despite Increased State Funding

Despite a 41% increase in state funding for education since 2016, many K-12 schools in Indiana are making budget cuts. This is partly due to Senate Enrolled Act 1, which will reduce schools' property tax revenue by $744 million over three years, with savings primarily benefiting homeowners. While overall school property tax levies increased by 3.2% in 2026, this is below the pace of inflation, leading some districts to shift funds from education to operations and face challenges with teacher pay and benefits due to falling enrollment.