Indiana schools still haven’t recovered from the financial hit they took from the recession of 2007-09. And schools that serve poor children have fallen furthest behind where they once were.
Those are key findings from an analysis of school funding from the Center for Evaluation and Education Policy at Indiana University. The report, “Equity Analysis of the 2015-17 Indiana School Funding Formula,” was written by CEEP researcher Thomas Sugimoto for the State Board of Education.
The findings should be front and center for legislators as they put together a state budget for the next two years, including a funding formula that will allocate about $7 billion a year to schools.
Sugimoto said lawmakers shouldn’t see the report in isolation but should consider it in light of their efforts to create a fair and effective system for funding education. And the report should improve their understanding of the challenges facing schools where funding has declined, he said.
Indiana schools have been digging out of the hole left by the recession, the report shows, but they’ve not reached daylight. Adjusting for inflation, they operate on less money today than eight years ago. State leaders will say there’s only enough money to give schools a modest increase. But the state has $2 billion in reserves, some of which could be tapped. And tax cuts approved in recent years reduced state revenue by $650 million, according to Purdue agricultural economist Larry DeBoer. Investing that money in education would have put schools on much more solid ground.