Politics
Indiana Senate Bill 312 Education Funding Formula: Indianapolis District Allocations Compared to Other Cities
The updated per-pupil formula in Senate Bill 312 directs an estimated $6,800 base amount plus adjustments to Indianapolis Public Schools for the 2027 fiscal year, while peer districts in Fort Wayne and Evansville receive different weights based on enrollment and local revenue data.
How we reported this
Senate Bill 312, signed by Governor Mike Braun on June 30, revises the state's K-12 funding formula that sets base per-pupil amounts and adds weights for English learners and special education students. The change directly affects the 42,000 students enrolled in Indianapolis Public Schools and the property taxpayers who support Marion County schools through local levies.
State budget documents released by the Indiana Department of Education in May show the legislation responds to enrollment shifts recorded in the 2025 fall count, when several urban districts reported declines while suburban systems posted gains. Lawmakers adjusted the formula to tie more dollars to current student numbers rather than prior-year averages.
Effects for Indianapolis households and schools
Under the new weights, Indianapolis Public Schools stands to receive roughly $12 million more than it would have under the old structure, according to preliminary estimates from the Marion County auditor's office. That figure translates to about $285 per student on top of the $6,800 base, an amount local advocates note could support additional reading specialists at schools such as Shortridge High School and Arsenal Technical High School. In comparison, Fort Wayne Community Schools receives a smaller adjustment because its enrollment mix produces lower weights for the same base amount.
Evansville Vanderburgh School Corporation, with fewer English learners than Indianapolis, receives a different supplement tied to its 2025 assessed valuation data. The legislation states these variations arise from the formula's local revenue offset, which subtracts a portion of property tax collections before state aid is calculated.
State records list total K-12 appropriations at $8.9 billion for the coming biennium, with Indianapolis Public Schools projected to draw $312 million of that total once the new weights take effect. The Indiana Department of Education says districts will receive final allocation notices by October 2026 after the fall count is certified.
Implementation begins with the 2027 school year budget cycle, when local school boards in Marion, Allen and Vanderburgh counties will incorporate the revised numbers into their spending plans and tax levy requests.