Indiana school districts were relieved when the governor announced that the state would not be cutting aid in the coming fiscal year. With the COVID recession, state sales tax revenues were 15 percent below forecast in both April and May, and income tax revenues were down more. State agencies and universities had been told to reduce their budgets. But the state will find a way to maintain state aid to schools through mid-2021.
State school aid looks secure. Property taxes are the other big revenue source for schools. It’s big for counties, cities, towns and other local governments, too. Will the recession affect property taxes?