In 2025, Indiana Statehouse passed Senate Bill 1 (now called Senate Enrolled Act 1) with significant property tax cuts that will affect multiple local government sectors, including public schools. The Legislative Service Agency estimates that public schools in Indiana will lose $744.4 million in total across 3 years starting in 2026, with the greatest losses happening in 2028 with a projected revenue loss of $336 million.

Property tax reductions directly impact school operations:

• Transportation (school buses, fuel, mechanics)
• Building maintenance & utilities (electricity, HVAC, plumbing, etc.)
• Custodial staff & security
• Food service infrastructure (not food itself)
• Technology infrastructure (servers, networks, classroom tech upkeep)
• Insurance (property, liability)
• Central office and financial staff

Families will feel these cuts in the following way:

• Fewer staff, bigger classes, and leaner programs.
• Bus disruptions, travel to new/different/consolidated schools. Already seeing a reduction of bus replacements and bus pick-up zones.
• Districts will likely request higher parental engagement (fundraising/volunteering) to maintain activities.
• Reduction in quality of instructional material

You can see how much your district will potentially lose due to SEA 1.