Indiana's school funding is based on a complex formula that takes average daily membership, or enrollment, and other factors into account. One of those factors is the complexity index, which is calculated by looking at the percentage of students receiving free and reduced-price lunches, Indiana Department of Education spokeswoman Stephanie Sample said.
School districts that have higher concentrations of poverty, as measured by the percentage of students eligible for free and reduced-price meals, receive additional per-student funding.
This ensures "vertical equity" in the school funding formula and acknowledges that to equalize the playing field and offset the detrimental effects of poverty, some students are more costly to educate, said Terry Spradlin, director for Education Policy at the Center for Evaluation and Education Policy at Indiana University Bloomington.
"Local wealth used to be a factor for determining a school district's funding levels, and those districts that had greater property wealth received a larger percentage of general fund dollars from this revenue source and the state would contribute less," he said. "With property taxes no longer a general fund revenue source for schools, these schools have suffered some under the current funding system.
...
Munster Superintendent Richard Sopko said his district has petitioned the state and legislators for years to create equity in the school funding formula. The School Town of Munster gets $4,750.14 per student.
"It costs us just as much to educate a student as it costs anyone else regardless of where the student lives or the assessed value of their home," he said. "The funding formula has never been kind to Munster."
Sopko said the problem was compounded in 2010 when the state took over funding school districts' general funds, using sales tax and personal income tax, rather than the more dependable property taxes.
Sopko said the district lost $1.8 million that year and over the past three years lost a total of $5.8 million.
"I think it's unconscionable that we have a state with a $2.2 billion surplus, and they've chosen to balance the budget on the back of education," he said.
MSD of Boone Township Superintendent George Letz said Hebron schools have lost $451,156 in funding since 2010.
"In addition to this action, the corporation had reductions of tax dollars in five other funds (capital projects, transportation, debt service, pension and bus replacement) due to the circuit breaker and the corresponding caps which are now part of the Indiana Constitution," Letz said.
"At the same time, our expenses continue to increase because of higher costs for everything we provide to assist teachers in the instructional process and to operate our buildings: insurance, utilities, maintenance, technology ... teacher salaries and benefits, supplies, classified salaries and benefits," he said.
MSD of Boone Township receives $5,190.10 per student for 2012, less than the state average of $5,400. The range of funding for school districts in Indiana is $4,600 to $8,400 per student.
The bottom line is that many school districts have had to cut staff.
