Indiana’s 2025 legislative session sharply intensified a long-running effort to defund Hoosier public schools. Senate Enrolled Act 1 (SEA 1), framed as property tax reform, will reduce local funding for nearly all school corporations through 2031, compounding already inadequate state allocations and rising operational costs.

In the summer of 2025, ICPE received widespread reports of public school budget shortfalls, largely tied to the passage of SEA 1. To assess the statewide impact, ICPE created a 13-question funding survey and emailed it to superintendents of all 290 traditional public school districts.

By the November 6 deadline, 148 districts—51%—responded, and their results form the basis of the report. Most districts report imminent or ongoing staff and service cuts, warn of worsening crises ahead, and note that recent academic gains—largely driven by temporary federal support—are unlikely to be sustained under these funding reductions.

Funding Survey Report

Press release