Indiana School Districts Face Immediate Cuts After Tax Vote Losses

Mississinewa Community Schools in Gas City will eliminate one of its two school resource officers starting Monday. The district lost its ballot measure to increase property taxes by 71 votes in Tuesday's election. Superintendent Jeremy Fewell said the district must act quickly to preserve facility maintenance funds. He stated that the administration knows cuts are necessary and chose not to delay the process.

Mississinewa is one of 12 districts that failed to pass funding referendums in the recent vote. Unofficial results show voters in 26 of the 38 districts approved their respective measures. Leaders in the 12 failing districts now must address budget shortfalls caused by state property tax reforms enacted last year. These reforms reduced local funding streams for schools. Consequences vary by district and may include reduced transportation services or school closures.

The district faces a deficit of roughly $2 million. To address about $700,000 of that gap, Mississinewa plans to cut transportation services for approximately 1,200 students next year. It will also reduce its preschool program. The district will eliminate the remaining school resource officer in the next school year. Starting immediately, the district will charge fees to groups that use its facilities. Fewell said some community members viewed the planned cuts as scare tactics, but he confirmed the reductions are real.

Grant County, which includes Mississinewa, is among the poorest counties in Indiana. However, districts in wealthier areas also faced losses. In Sheridan Community Schools, the state's wealthiest county, the referendum failed. Superintendent Dave Mundy said in an email that the district is analyzing its next steps. In Madison County, referendums for Anderson and Elwood schools appear to have failed. Anderson's measure was trailing by 82 votes in unofficial counts. Brad Meadows, the district's communications director, said the district believes it has failed.

Anderson schools anticipate an $8.25 million deficit in 2028 without the referendum funding. Superintendent Joe Cronk expressed disappointment in a Wednesday statement. He encouraged staff to support one another and focus on students. Cronk noted that difficult decisions lie ahead and that those decisions require careful thought and honest discussion. In Elwood, Superintendent Troy Friedersdorf stated that the administration and school board will determine additional reductions affecting staffing, programs, and services. He noted that these decisions weigh heavily on the community.

Terry Spradlin of the Indiana School Boards Association said the roughly 70% passage rate across the state exceeded expectations. He noted that ballot questions are harder to pass in November than in May. Many voters were motivated by cost-of-living issues. Spradlin said the results show that residents understand the value of public education in their communities. He added that statewide enrollment declines could worsen financial problems for districts that did not pass their measures.

This election cycle saw a record number of tax referendums, representing approximately $500 million in annual school funding. Legislative changes restricted these referendums to general election years, contributing to the high volume. Zionsville Community Schools and West Lafayette School Corporation received the most support, with passage rates of roughly 69%. West Lafayette Superintendent Shawn Greiner said the support preserves funding for high-quality education.

Washington Township schools passed its referendum with 67% of the vote. Superintendent Sean Taylor wrote to the community that the district will use the resources to support educators. He stated the goal is to ensure every child feels connected, challenged, and celebrated. Indianapolis Public Schools and local charter schools also passed a referendum. Despite this win, the district plans to close schools and enact cuts to close a lingering $20 million budget hole.

District leaders plan to lobby the state legislature for more funding in the upcoming session. The Indiana School Boards Association will push for increased state tuition support. Spradlin said current state funding has not kept up with inflation. The state's two-year budget adopted in 2025 increased per-pupil state funding by 2% each year. The association seeks an annual increase of 6% in the next budget. Spradlin said if state funding grows at 2% or 3% while costs rise faster, the state is not maintaining the status quo.