Why Indiana’s School Funding Isn’t Working and What It Means for Public Schools
02/11/2026
Across Indiana, school districts are beginning to announce budget shortfalls, difficult cuts and hard choices about programs and staffing. For many families and educators, the news feels sudden. In reality, these funding challenges have been building for years.
Indiana’s school funding system is complicated, but the outcome is increasingly clear. Public schools are being asked to do more with fewer resources, even as costs continue to rise. Changes to the state’s funding formula, policy decisions over time and inflation have steadily reduced the resources available for classrooms.
To help explain how Indiana’s school funding system works and why it is no longer meeting the needs of students and educators, ISTA created the short explainer video below.
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