School-funding changes over the last decade have created funding inequities for Indiana’s students from low-income communities, students with disabilities, English language learners, and students in public charter schools—inequities which will likely be exacerbated by COVID-19. Students of color are disproportionately impacted by these funding gaps.
This report examines what caused these inequities, including 2008 property tax reforms and a 2015 change to Indiana’s funding formula. We propose solutions to ensure all students in Indiana receive their fair share of funding:
- Differentiate state aid based on local wealth.
- Create more equitable funding for students from low-income households and English language learners.
- Create a fairer system for special education funding.
- Share local funding with charter schools.
