Find out how much money your school district could lose under the GOP tax proposal

Updated Thursday, April 10, 2025 3 p.m.

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Gov. Mike Braun and Indiana House Republicans have struck a deal on a property tax relief plan that could strip nearly three-quarters of a billion dollars from public school districts over the next three years.

In a statement, Braun urged the Senate to take action quickly “to get it to my desk for signature.”

The proposal calls for changes to start in 2026, when all districts could lose a combined 4.2% in local revenue compared to current law. The greatest impact on schools is in 2028, with an estimated reduction of more than $336 million in total property tax revenue, according to the nonpartisan Legislative Services Agency. The total reduction is estimated at $744.4 million.

The amended Senate Bill, which passed the House Thursday, now includes controversial language from Senate Bill 518 that would require local property tax revenue to be shared between traditional public school districts and charter schools starting in 2028. It's projected charter schools would receive about $4.7 million more in operations fund distributions than they would under current law.

Rep. Greg Porter (D-Indianapolis) said schools lose under the current tax plan.

“Senate Bill 1 is a cut in funding schools – over 160 school corporations will be hit,” Porter said. 

SB 1 delivers homeowners a tax credit on their homestead property tax bills beginning in 2026 with stackable credits for veterans and seniors, among other measures. 

School district leaders have spoken out since the legislative sessions began, voicing fears about revenue loss under all three Republican-led property tax plans. School districts rely on local property taxes to fund transportation and facility expenses.

South Bend Community Schools would lose the most, around $27.4 million during the period.

Three Central Indiana school districts, in particular, would face major budget shortfalls under the House plan.

Hamilton Southeastern Schools would lose $26.7 million, and Carmel Clay Schools would lose $25.2 between 2026 and 2028. Indianapolis Public Schools would see a reduction of nearly $14 million.

LSA estimates that IPS would lose nearly $14 million from 2026 to 2028.

IPS officials projected more than $96 million will be lost in property tax revenue from 2026 to 2032 under the full changes outlined in SB 1, including a requirement to divide operation tax funds with eligible charter schools. The fiscal estimates of those changes are not yet available.

Here’s how much money each of the state’s school districts are projected to lose across three years. 

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