Indiana's School Funding Squeeze

connectrealdots.com THU, OCT 8, 2026

KEY INDICATORS

ESSER FUNDS EXPIRED

Sept 2024

Federal COVID relief that had buffered school budgets nationally

STATES WITH NEW TAX CAPS

Indiana, Iowa, Idaho among states enacting property tax limits in 2024–25

PRIMARY LOCAL SCHOOL REVENUE

Property Tax

The dominant funding mechanism for K-12 schools in Indiana and most U.S. states

BALLOT SEASON

Fall 2026

When a record number of Indiana school referendums are expected to appear

INDIANA SCHOOL OPERATING REFERENDUMS BY YEAR

Annual count of ballot measures asking voters to approve school operating tax increases. Stacked bars show passed (bottom) vs. failed/pending (top). 2026 is projected.

PASSED

FAILED / PENDING

PROJECTED

KEY EVENT

2020COVID-19 pandemic: Election disruptions suppressed referendum activity; CARES Act passed

2021American Rescue Plan / ESSER III signed: American Rescue Plan delivers $122B nationally to K-12; Indiana receives ~$1.9B

2024ESSER expires: Federal COVID relief funds expired Sept 30, 2024; GAO flags fiscal cliff risk

2025IN tax cuts enacted: Indiana General Assembly passes property tax relief; school revenue base shrinks

2026Projected record: Axios: record number of school referendums expected on fall 2026 Indiana ballots

THE MECHANISM EXPLAINED