Dec. 21—As the 2025 session of the Indiana General Assembly approaches, public school leaders will have their eyes on many issues, but uppermost will be overall k-12 funding, as well as potential property tax relief measures.
Legislative leaders caution that while there will be some additional K-12 funding in the next two-year budget, it will be limited.
“We will have some additional revenue, but not windfalls of additional revenue,” said Rep. Bob Behning, who chairs the House Education Committee and wields much influence in education legislation.
Factors impacting revenue include the end of federal pandemic relief funding and a Medicaid shortfall.
Chris Himsel, Vigo County School Corp. superintendent, said keeping up with inflation is a priority.
“We understand the state has many responsibilities. We understand they have many different things they have to consider and think about — many different asks and wants,” Himsel said.
At Vigo County schools, “We just want to make sure that we are able to maintain and keep up with the rate of inflation in terms of the cost of supplies, cost of health care and benefits for employees — and enough of an increase to cover inflationary costs so our employees can continue to make ends meet,” Himsel said. “We don’t want to fall any further behind.”
The district has been trying aggressively to increase salary and wages.
“We don’t want to lose the momentum we have and end up losing employees we’ve gained because the budget doesn’t allow us to at minimum to keep up with those inflationary costs,” he said.
The Indiana School Board Association also advocates tuition support funding increases at or above inflation, said Terry Spradlin, ISBA executive director of the Indiana School Boards Association.
Inflation is currently just below 3% and he suggests funding increases of 3 to 4% would allow districts to meet obligations and continue the forward momentum in improving teacher compensation.
Average teacher pay in Indiana is now about $60,000, which was a goal of Gov. Eric Holcomb and the Next Level Teacher Compensation Commission.
Adequate funding increases will keep the momentum going, but “less than inflation will prompt tough financial decisions that could impact personnel and pay increases for the next two years,” Spradlin said.
“Anything less than inflation would be a loss for us,” he said. “It is a matter of prioritizing funding. … We want K-12 education to remain a top priority.”
Property taxes
Property tax relief measures and potential impact on school revenues is a concern for districts.
Property taxes fund the districts’ operations fund, which supports student transportation, capital expenditures and building maintenance. Property taxes also fund debt service and referendum funds.
Himsel says property tax reform is a complex issue and efforts to address it could fix some problems but cause other problems.
“Every county is different and the impact of these changes affect us all differently,” he said.
VCSC is unique in that it’s one of the few countywide systems in Indiana.
“Unlike some of the other countywide systems, we have some exempted properties that affect our assessed value differently than those of other counties. I wanted to make sure (legislators) understood that complexity,” he said.
Spradlin does expect the Legislature to begin to address property tax relief. “They feel there is a legitimate concern from constituents about the need for some relief,” he said.
ISBA agrees with other local government units in that if those fiscal changes reduce funding for schools and/or local government, the Legislature needs to ensure there is a revenue source to replace it, he said.
“It’s not an easy conversation,” Spradlin said. “I think something meaningful will certainly happen on property tax policy; it’s a matter of what and to what degree.”
School choice, deregulation, other issues
Other legislation likely to be introduced would call for universal school choice, Behning said.
It would remove the income cap for private school vouchers.
Changes made in 2023 to the private school voucher program already made it nearly universal, expanding it to include households with incomes up to 400% of the amount required for a student to qualify for the federal free or reduced price lunch program.
Currently, a family of four with a household income of about $230,000 qualifies for the Choice Scholarship Program.
Enrollment in Indiana’s private-school voucher program grew 31% in 2023-24, with more than 70,000 students participating; the program cost the state $439 million, which is around 40% higher than the $311 million spent on vouchers in the year prior.
“Universal choice would allow even more families to find the right educational fit for their children, further leveling the playing field for Hoosier students,” Behning wrote in a column for the Indiana Business Journal.
Keith Gambill, president of the Indiana State Teachers Association, countered in a subsequent IBJ column that Indiana should not move to universal private school vouchers by removing the current income cap.
“Doing so would deepen inequities in education, further drain resources from public schools and prioritize the interests of a small, select group of families over the needs of most Hoosier kids,” Gambill wrote.
Instead of further expanding the voucher program, Indiana should focus on strengthening its public schools, which serve more than 90% of Indiana students, Gambill stated.
Behning also plans to introduce a “significant” deregulation bill, likely the first of three major deregulation bills over the next few years.
“The goal is reduce the amount of administrative burdens on K-12 schools,” he said. For example, trainings would be determined more at the local level and not as much at the state level unless it’s federally required.
The intent is to streamline school operations and reduce regulatory burdens, he said.
He anticipates a bill on school accountability calling for the state Department of Education to come up with an A to F model; DOE “would like to have some flexibility on what that might look like,” he said.
Another legislative proposal will place a stronger emphasis on student math skills, he said.
Given U.S. math declines on some key international tests, Behning pointed to legislation that will provide for early screening to ensure Indiana students get needed remediation.
He referenced U.S. performance on PISA (Program for International Student Assessment) and TIMSS (Trends in International Mathematics and Science Study).
Behning also anticipates proposals to change the teacher appreciation grant; changes could re-allocate funds toward hard-to-fill teaching positions as well as recognition for teachers who are “doing an exceptional job” in terms of student achievement.
Now, funding goes toward cash stipends paid to teachers rated as effective or highly effective.
Behning also plans to re-introduce a bill that would limit school referendums to general elections. Now, they can also occur during primaries.
ISBA is calling for increased funding for English Language Learners, given the ELL student count in Indiana continues to significantly increase, Spradlin said.
It advocates increased summer school reimbursement, based on the increased emphasis on those programs to address Grades 2 and 3 proficiency in literacy.
ISBA also advocates an increase in the Indiana Secured Schools Safety Grant, from $25 million to $35 million annually.
“Ensuring safe, secure, and supportive classroom learning environments has escalated in urgency and priority given the rash of tragic school shootings across the nation,” according to ISBA’s 2025 legislative priorities.
Gov.-elect Braun’s priorities
Governor-elect Mike Braun has also outlined his educational priorities, which include expanding school choice programs; boosting teacher base pay; investing in programs to transition professionals into teaching; and prioritizing school safety, including establishing the Indiana Office of School Safety.
He also has called for “historic property tax relief” by capping property tax increases, updating deductions and reforming the referendum process.
State Rep. Tonya Pfaff, D-Terre Haute, cautioned that Braun’s push for property tax relief “comes at a cost: less funding for our cities and schools. This raises critical questions about student funding, the expansion of vouchers, and the growing push to prioritize workforce readiness over higher education.”
She said the focus “must remain on investing in the future — ensuring our schools, teachers, and counselors have the resources they need to provide every student with a high-quality education.”
Pfaff also anticipates the upcoming session will address the critical issue of absenteeism. “Student attendance is a significant challenge, as it’s impossible to teach students who aren’t present,” she said. “The session will include in-depth discussions on strategies and solutions to tackle this problem effectively.”
State Sen. Greg Goode, R-Terre Haute, will be a new ranking member of the Senate Committee on Education and Career Development.
He also will serve on the Senate Committee on Appropriations and School Funding Subcommittee.
“I have already had numerous meetings with teachers, administrators and families of children in our local schools,” he said in a statement. “All want common sense approaches to K-12 education policy, and I am committed to being a strong partner.”
K-12 education accounts for nearly half of the state’s current two-year budget, Goode said, “and I expect our next budget will continue to include significant support for districts across Indiana.”