Frequently Asked Questions

Net Tuition Support is a state funding measure used in Indiana’s school finance reports. It is the base number the state uses in the IDOE Teacher Compensation Report to show what percentage of Net Tuition Support funding goes to teacher pay and benefits.

IDOE TEACHER COMPENSATION REPORT 2024-2025

A transfer from Education to Operations does not create new money, and it does not automatically mean less support for students. Indiana requires different costs to be paid from different funds. Transfers are a legal way to move dollars so the district can pay required costs from the correct fund. The transfer is also limited by a state cap of 15% of the total revenue deposited into the school corporation’s Education Fund.

Budgets can be higher than projected revenue when a district plans to use cash balances (savings) to cover the gap. In the 2026 plan, each of the three major funds shows expenses higher than projected revenue, which means cash balances are expected to help cover the difference. This can work for a short time, but cash balances are limited and area primary reason we’re right-sizing expenditures.

If cash balances get too low, the district has fewer options and less flexibility. That can lead to harder choices, like reducing spending or delaying purchases or projects. Closing the yearly gap matters, specifically because cash balances can help temporarily, but they are not a long-term solution.

In 2019, Indiana made funding changes (HEA 1009) that shifted certain types of costs to the Operations fund that were previously in the Education Fund (General Fund). When more required costs must be paid from Operations, districts may need to use transfers from Education to Operations to make sure those costs can be covered.