Indiana school funding doesn't keep pace with growth

BICKNELL, Ind. (AP) - Changes in Indiana's school funding formula in which state aid follows the student are having an unexpected effect on a growing southwestern Indiana school district, where officials say they expect to receive less in state support next year despite having more students.

North Knox Superintendent Darrel Bobe says more students should mean more money for his district of about 1,300 students. Instead, he's looking at a $144,000 drop in state funding.

Bobe said the changes to the funding formula approved by state lawmakers include efforts to equalize support among districts. Some districts, like North Knox, have traditionally received "quite a bit more" in per-student aid than other nearby schools, Bobe told the Vincennes Sun-Commercial.

Instead of raising the amount given to lower-funded school corporations, he said, the state is taking away from those that have received more.

"So we're getting less in state support even though our enrollment is increasing," Bobe said.

Adjustments to the funding formula advanced by Republican lawmakers shifted more money to growing suburban districts by paying schools only for students actually enrolled, eliminating the phase-out of funding shrinking districts currently receive to help ease their financial losses.

The drop in funding at North Knox could affect everything from teacher salaries to rewards for high performance.

In the past, Bobe said, extra money often went to pay teachers, and as a result, the corporation's salary scale was "pretty high."

The school board recently approved 1-percent stipends for most teachers and non-certified staff. Such increases will be more challenging in the future, Bobe said.

Though he's frustrated by the situation, Bobe said he's pleased that school officials have carefully managed their finances. In addition, the corporation's assessed property valuation has risen in the past year as a result of development in the school district.

That has helped lower tax bills for property owners.

"We've cut 15 percent out of that levy," he said. "That's being fiscally responsible."

Information from: Vincennes Sun-Commercial