Indiana school officials say the state’s new property tax overhaul is creating significant budget pressure.

According to a statewide survey released by the Indiana Coalition for Public Education and reported by the Indiana Capital Chronicle. shows more than 95 percent of responding districts expect to lose funding next year under Senate Enrolled Act 1. Nearly all expect financial impacts beyond 2025.

Superintendents from suburban, rural, and urban districts cited rising operating costs and reduced property tax revenue.

Many districts reported that cuts have already begun. More than 65 percent said they have reduced or will reduce support staff, and more than half reported current or planned reductions in teaching positions. When including districts still considering cuts, more than 90 percent said staffing or facility reductions are likely.

Superintendents also reported delaying building repairs, postponing bus purchases, and limiting technology upgrades. Several respondents said rising utility, transportation, and insurance costs now exceed what their operations funds can cover.

A majority of districts indicated they may pursue operating referendums to sustain services. District leaders said that meeting community expectations would require an average funding increase of 7.6 percent, compared to the roughly 2 percent annual increase approved in the current state budget.

Some respondents said reversing the property tax changes in SEA 1 would be the most effective way to stabilize school operations.