Northwest Indiana school district eliminates school buses, some sports and clubs after funding cuts
A school district in Northwest Indiana said it will eliminate all school bus transportation and cut sports and clubs for grades K-8 to address a deficit caused by decreased funding from major property tax cuts.
Tri-Creek School District Superintendent Andy Anderson said he feels like the floor is getting ready to fall out and destroy the legacy of schools in Lowell.
"This is not a scare tactic. It is 100% real deal. It's people's lives. It's our youth of tomorrow," Anderson said.
In a statement on their Facebook page the school district — which serves Lowell, Indiana, as well as the rest of Cedar Creek Township, Eagle Creek Township and West Creek Township — said all school-sponsored sports and extracurricular clubs for grades K-8 will be eliminated on Aug. 1, 2027. The district's school bus transportation program will be eliminated on Aug. 1, 2028.
"We have a fleet of 40 buses. These are people's livelihood that live and work in our community, and these jobs are going away," Anderson said.
More than 2,200 kids rely on those buses every day.
"Imagine if transportation is cut and the parent pickup line that stretches all the way down the main drag in our town and creates gridlock and traffic," Anderson said.
The district said additional cuts to high school sports, classroom instructional support staff and student safety programs are pending and will be determined at a later date.
The district said the cuts are necessary to address a $3 million deficit after Indiana passed Senate Enrolled Act 1 in 2025. The law made drastic changes and Indiana's property tax formula, which Indiana Senate Republicans said will provide $1.3 billion in savings for homeowners between 2025 and 2028.
The law significantly reduces the assessed value of homes across Indiana over the course of those three years, and provides substantial property tax credits to homeowners. Public schools rely on property taxes for large portions of their funding; the Tri-Creek School Corporation's social media post says the reduced revenue has necessitated the program cuts and eliminations they "regretfully approved" at their recent meeting.
The Indiana Legislative Services Agency – the arm of the Indiana General Assembly that handles fiscal analysis and research – estimated public schools in the state will lose $744.4 million between 2026 and 2027, according to the Indiana Coalition for Public Education.
Anderson said the district is in a $3 million hole through no fault of its own.
"It truly has to do with a change in Indiana law in how property taxes fund local school districts, and what's happening right now is outside of our control," he said. "We are running as lean as we possibly can."
The Tri-Creek School Corporation tried and failed to pass a referendum in 2023 that would address the funding shortages, and since then they have had to cut 34 positions, including administrators, teachers, counseling staff and more. They're now in a $3 million hole.
"Absolutely no one wanted to make these cuts, but this is the real deal. There are no other options," Anderson said. "In three years, we will not be able to make our payroll. Zero money. No rainy day fund. Nothing. The only fix is you either make all of these cuts that add up to $3 million or you pass a referendum to fill that in and maintain status quo."
A referendum on the ballot in November could reverse all of it. Dozens of Indiana school districts have placed referendums on the ballot that would raise or renew property tax levies and allow them to maintain the status quo, essentially preplacing the revenue the district is losing because of the lowered property taxes from Senate Enrolled Act 1.
The Tri-Creek Board of School Trustees will hold three town hall meetings so community members can ask questions about the cuts on Aug. 11 at 6 p.m., Aug. 19 at 9:30 a.m. and Aug. 26 at 7 p.m., all at the District Administration Office.
The new school year starts on Aug. 18.
