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Indiana

Costing Out | Useful Resources

Historical Background

Prior to 2007, Indiana was one of only seven states in which there had been no court review of the constitutionality of the state's school funding system. A 1987 case, Lake Central v. State, No. 56 C01-8704-CP81 (Newton Cir. Ct.), was withdrawn after the State developed a new funding system.

Bonner v. Daniels

In January 2007, an Indiana judge granted - in an extremely brief opinion - the state’s motion to dismiss a school funding lawsuit brought against the state, ruling that school funding is a “political question” that is not appropriate for review by the courts. Plaintiffs in Bonner v. Daniels argued that the state’s school funding system is insufficient to provide all students an adequate education, as required by the state constitution.

Named defendants in the case were Governor Mitch Daniels, Superintendent of Public Instruction Suellen K. Reed, and the Indiana Board of Education. Judge Cale Bradford, the presiding judge, ruled that Governor Daniels and Superintendent Reed are not responsible for the funding formula and thus were not proper defendants. As for the plaintiff’s claim against the remaining defendant, Judge Bradford noted that it “seems to be, in reality, dissatisfaction with how the formula is weighed and implemented by the State Board of Education, not the formula itself.” Saying that such decisions were political and did not lend themselves to a likely judicial remedy, Judge Bradford ruled that he could not order a remedy out of respect for separation of powers. Plaintiffs attorneys have said they will appeal.

On May 2, 2008 the Indiana Court of Appeals reversed the lower court’s holding that the separation of powers doctrine precludes the courts from considering plaintiffs’ claims that children throughout the state are being denied their constitutional right to a quality education and ruled that these issues are justiciable.

Costing Out

In 2002, Augenblick & Meyers conducted a costing-out study for the Indiana State Teachers Association. The study concluded that Indiana's school spending was less than the estimated amount needed to provide an adequate education, and it strongly recommended increased state funding for special education and “hard-to-serve” students.

Useful Resources

The National Center for Education Statistics (NCES) Report, "Public School Finance Programs of the United States and Canada," describes the Indiana school funding system.

Last updated, May, 2008