Investing in Indiana’s Future: Why Stable Funding for Public Schools Is Essential

By Terry Spradlin, Executive Director, Indiana School Boards Association

Public education in Indiana forms the backbone of our democracy, strengthens our local communities, and drives economic growth and prosperity. When Indiana’s public schools are adequately funded, they become powerful engines of opportunity, preparing students to thrive in college, careers, and civic life.

The evidence of success is undeniable. Graduation rates reached a record high of 90.2% for the Class of 2024. Students in Indiana lead the nation in earning college credit while still in high school, with 64% doing so and accumulating an average of 13.5 credits. Math and reading scores for fourth and eighth graders are among the best in the nation, and third grade reading proficiency has seen four consecutive years of improvement, with a record five percentage point jump this spring. Chronic absenteeism has declined for three straight years. These achievements are more remarkable given that Indiana ranks 37th nationally in per-pupil education spending.

However, the success of our public schools is threatened by an increasingly burdensome regulatory environment and a less favorable financial forecast. In the last eight years, 308 new education laws have been enacted, forcing schools to divert time and resources away from student achievement and toward compliance and reporting. The sheer volume of mandates has created a moving target, making it harder to focus on what matters most: teaching and learning. Our public schools deserve a “steady target for which to aim.

”Indiana has long prided itself on maintaining low property taxes—Indiana now ranks 39th nationally in property tax as a percentage of personal income—but the resulting consequence is the erosion of essential public services. With Senate Enrolled Act 1 projected to reduce property tax funding for education by $770 million over the next three years, school corporations have no choice but to become more efficient. 

The truth is many are already stretched thin. Annual "circuit breaker" losses for education have topped $300 million for five consecutive years. Transferring additional Education Fund dollars to compensate for Operations Fund losses will mean lower teacher pay raises, larger class sizes, and fewer opportunities for students. Some districts will reluctantly turn to referendums—asking voters to approve new taxes just to maintain core services.

Let’s think beyond SEA 1. Let’s invest in the services that define our quality of life and give our children the world-class education they deserve. Because in the end, you get what you pay for.