Financial Transparency & Stewardship

How does Indiana Determine School Funding?

Indiana funds public schools primarily based on student enrollment through a formula known as Tuition Support. Districts receive a foundational amount for each student, with additional funding provided for services such as special education, career and technical education, and English learner programs. Because funding is largely tied to enrollment, every student plays an important role in supporting educational opportunities throughout the district.

How Does SEA 1 Impact Lawrence Township?

SEA 1 provides property tax relief to homeowners, but it also reduces the amount of local property tax revenue available to school districts. For Lawrence Township, this primarily affects the Operations Fund, which supports transportation, school safety, facility maintenance, utilities, and other operational services.

The biggest impact of SEA1 in 2026 was the 3% loss in property tax revenue to the supplemental homestead credits. School corporations with more then 50% to 60% of their tax base in homestead property tend to lose more than average. This trend will continue through 2031. Falling net assessed value (AV) means that fixed rate referendum funds (generally operating referenda) will raise less revenue in 2017 than in 2026. To maintain currently funding (2025), property tax rates will have to increase to offset lower net AV due to SEA 1. 

While the district's instructional funding continues to come primarily from the State of Indiana through student enrollment-based funding, SEA 1 may slow future growth in local revenue and increase financial pressures on operational budgets. Beginning in 2028, Indiana law will also require school districts to share a portion of Operations Fund revenue with eligible charter schools (DeBoer, Purdue University, 2026).

How does Indiana determine how much funding Lawrence Township receives?

The State of Indiana uses a student-based funding formula. Districts receive a foundational amount for each student enrolled, with additional funding provided for services such as special education, career and technical education, and English learner programs.

1. Count the students: Average Daily Membership (ADM) - Indiana tracks the district's headcount via official "count days."
2. Apply the Complexity Index: Because some student populations require more resources to educate, Indiana calculates a district-specific complexity index. 
3. Layer Categorical Grants: Indiana adds categorical funding tailored to exact services offered (Special Education, Career & Technical Education, English Leaner Programs, Honors Diplomas, etc.

Limited by strict state caps (1% for primary homesteads), property taxes can only fund the district's Operations and Debt Service funds. 

Why does enrollment matter?

Because state funding is largely tied to student enrollment, the number of students attending Lawrence Township Schools directly impacts the resources available to support teaching and learning. Roughly 82% to 85% of the state's tuition support formula consists of the Basic Grant, which multiplies a set base amount per pupil by the district's student enrollment head count. Districts count enrolled students twice a year to determine this exact state allocation. 

Does Lawrence Township have an operating referendum?

No. Lawrence Township is one of two school districts in Marion County that does not have an operating referendum.

An operating referendum is a local voter-approved tax that provides additional funding for a district's day-to-day operations, including staffing, programs, transportation, and student services. Click here for more information on voter registration. 

What referendum did Lawrence Township voters approve in 2019?

Lawrence Township voters approved a capital referendum to complete major renovations at Lawrence Central High School and Lawrence North High School. Click Here to Learn More.

Are All School Funds the Same?

No. Indiana law establishes separate funds for different purposes. In most cases, dollars designated for one purpose cannot be transferred to another.

• Education Fund: Sourced via state tuition support; exclusively covers classroom instruction, teacher/staff salaries, benefits, and instructional supplies. 
• Operations Fund: Funded primarily by local property taxes; covers building maintenance, utilities, transportation, school buses, and administrative overhead.
• Debt Service Fund: Funded via local property tax levies; dedicated to paying off bonds, loans, building renovations, and capital projects.
• Rainy Day Fund: Used to hold budget surpluses for emergency expenses or unexpected revenue shortfalls.
• Referendum Funds: Additional tax levies approved by local voters for specific, time-limited uses.

What is an operating referendum?

An operating referendum is a local voter-approved tax that provides additional funding for a district's day-to-day operations, including staffing, programs, transportation, and student services.

Does Lawrence Township have an operating referendum?

No. Lawrence Township is one of two school districts in Marion County that does not have an operating referendum.

What referendum did Lawrence Township voters approve in 2019?

Lawrence Township voters approved a capital referendum to complete major renovations at Lawrence Central High School and Lawrence North High School. Click Here to Learn More. A capital referendum is a ballot measure asking voters for permission to issue bonds or raise property taxes to fund a school district's long-term facility needs. 

Can capital referendum dollars be used to pay teachers or support daily operations?

No. Capital referendum funds are legally restricted and may only be used for approved facility-related projects.

How does Lawrence Township ensure financial stability?

The district follows Board-approved financial policies, including maintaining a board mandated cash reserve, conducting annual independent audits, and utilizing long-range financial planning to support operational stability. A public facing financial report is available at the Board of Education meeting held each month. 

How is the district audited?

The MSD of Lawrence Township undergoes an annual independent financial audit to ensure district funds are managed responsibly and in accordance with state and federal requirements. Auditors review financial records, internal controls, accounting practices, and compliance with applicable laws and regulations.

In addition to independent audits, the district submits required financial reports to the State of Indiana and operates under the oversight of the Board of Education. District budgets, financial reports, and audit findings are publicly available, providing transparency and accountability to taxpayers, families, and community members.

Has Lawrence Township increased employee compensation?

Yes. Lawrence Township has continued to invest in its employees through annual compensation increases since 2015 while maintaining strong financial stewardship and a positive cash balance. 

Teacher Pay Increases:

2019-2020 - 3%
2020-2021 - 3%
2021-2022 - 6.7%
2022-2023 - 4.75%
2023-2024 - 5.62% average
2024-2025 - 4.5%
2025-2026 - 2%

The district's ability to invest in employee compensation has been supported by enrollment growth and long-term financial planning.

How are taxpayer dollars monitored?

District finances are reviewed through annual independent audits, public budget hearings, Board of Education oversight, and state reporting requirements.

Where can I review the district's financial reports?

Annual budgets, audits, financial statements, and other financial documents are available on the Business & Finance page of the district website. 

Indiana currently has three major state-funded K-12 scholarship programs that are often discussed under the umbrella of "school choice." The largest and most widely known is the Indiana Choice Scholarship Program, often simply called "vouchers." The Indiana Choice Scholarship—public funds given to families to subsidize their private school tuition—is the largest and oldest voucher in the state (existing since 2011). When a student leaves a public school and enrolls in a private school using a state-funded scholarship, the state funding associated with that student is no longer provided to the public school district. 

How are Indiana Choice Scholarships funded?

Indiana Choice Scholarships are funded through the state's K-12 education budget. Both public school funding and voucher funding are appropriated by the Indiana General Assembly as part of the state's education spending plan.

What changed when income limits on vouchers were removed?

Recent changes to Indiana law expanded eligibility for Choice Scholarships, making virtually all Indiana families eligible regardless of income. As participation grows, a larger portion of state education funding is directed toward the scholarship program.

Does increased voucher participation affect public school funding?

Public schools continue to receive funding based largely on student enrollment. When students leave public schools for private schools using Choice Scholarships, the state funding associated with those students is no longer provided to the public school district.

Do public schools and vouchers draw from the same state education budget?

Yes. Both public school funding and Choice Scholarship funding are included within the state's overall K-12 education appropriations established by the Indiana General Assembly.