The Financial Reality of Running a Rural School District in Indiana
By Dr. Scott Van Der Aa, Superintendent, Bloomfield School District
Dr. Scott Van Der Aa
In rural Indiana, schools do more than educate—they serve as the heartbeat of the community. At Bloomfield School District, we’re proud of the pride and purpose that defines us. Whether it’s a packed gym on a Friday night or a classroom visit from the superintendent, our schools bring people together.
We also operate with strategic focus. Through careful planning and community partnership, we’ve built a lean, student-centered district delivering strong outcomes. But recent changes to state funding—especially through Senate Bill 1 and the newly adopted state budget—create serious challenges for districts like ours.
Budget impact ahead
Senate Bill 1’s property tax reform package will reduce Bloomfield’s local revenue by $121,700 in 2026, $121,290 in 2027 and $118,370 in 2028. These aren’t theoretical cuts—they are real dollars that help us pay for transportation, building maintenance, utilities and staffing.
At Bloomfield, we have long practiced smart, efficient budgeting. Our entire K–12 student population is served in a single building, reducing overhead and maximizing service delivery. We operate with just one full-time and one part-time daytime custodian. Our nine-person food service team prepares, serves and manages all meal and compliance tasks for every student.
Even with those efficiencies, inflation in fuel, maintenance and salaries forces us to consider cuts to an already streamlined operations budget.
Limits on local revenue
On top of SB 1’s effects, our district is impacted by Indiana’s circuit breaker tax caps. These limits, while providing predictability for homeowners, restrict how much school corporations can collect—even when local voters approve referenda. The result is less flexibility to respond to rising costs or make long-term infrastructure improvements.
We’re also preparing for economic growth. Project Prometheus, a $300 million development expected to bring 800 to 900 jobs to our region, is a welcome investment. However, because it is located in a tax increment financing (TIF) district, our school corporation will not receive any new property tax revenue from the project during the life of the TIF.
Economic growth should benefit the schools that support families and attract workforce talent. But without access to the expanding tax base, we are left without the resources to scale services as our community grows.
Delivering results
Despite these challenges, Bloomfield continues to deliver exceptional outcomes. We were one of Indiana’s first Early College High Schools, and this year, 15% of our seniors will graduate with both a diploma and an associate degree.
All of our teachers are properly licensed, including those delivering dual-credit coursework. We believe in investing in our people, because they invest in our students.
We are also proud to be a true community hub. Our gym is filled on game nights, and our schools are the social and civic center of town. Families gather, neighbors reconnect, and pride in our students shines through.
Small district, hands-on leadership
In a small district, leadership looks different. As superintendent, I oversee every aspect of operations—from HR and curriculum to grant writing and compliance. I visit every classroom biweekly. I attend events, mentor staff, and stay close to both students and state policy. That proximity is one of our greatest strengths.
A call for equity and support
What we ask of policymakers is simple: recognize the unique needs of districts like ours. A one-size-fits-all approach doesn’t reflect the resource realities in rural Indiana. With equitable funding and targeted investment, we will continue to offer a powerful return on the state’s investment in public education.
We’re not just running schools—we’re shaping the future of our community. And with the right support, we’ll keep delivering excellence for generations to come.