Hamilton County school districts get increased funding in new state budget

Indiana public school funding was mostly spared from cuts in the state’s new two-year budget, even as lawmakers expanded private school vouchers.

Legislative leaders moved forward with the expansion despite a revenue forecast showing a $2 billion drop in expected funding across the biennium.

K-12 schools will receive a 2% increase each year of the budget, with the voucher expansion taking effect in the second year.

The budget also follows a new property tax relief law signed April 15, which could cost school districts $744.4 million over the next few years.

In Hamilton County – some of the most impacted school districts by the state’s property tax plan – Carmel Clay Schools will receive $132.1 million in 2026 and $134.6 million in state tuition support.

Hamilton Southeastern Schools is expected to see a nearly 2% enrollment drop in the next two years. But the district’s funding remains strong with a 4.7% increase in funding over the budget years. 

This comes out to $165.9 million in 2026 and $167.9 million in 2027.

Indiana’s state tuition support includes several funding components for student needs. The foundation grant provides a base amount per student, while the complexity grant adds funding for supports to help low-income students. Districts also receive extra support through the special education, career and technical education, and honors diploma grants, which help serve specific student populations and academic programs.

Rep. Jeff Thompson (R-Lizton), the budget architect, said expanding school choice was “very, very important,” as was maintaining support for public schools. Republican leaders highlighted a $640 million increase in tuition support — about 5% over the biennium.

Here’s what funding looks like for each of Hamilton County’s school districts. 

Rachel Fradette is the WFYI Statehouse education reporter. Contact Rachel at rfradette@wfyi.org.