Indiana Schools Cutting Back As Economic Realities Hit Home

By Mary Ann Zehr

It's turning into a rough spring in Indiana, where some school districts are preparing to lay off teachers and increase class sizes to absorb $190 million in cuts to the state's K-12 education budget, and another $280 million in delayed payments to schools announced last month.

The cutbacks mean districts will also move money from capital-project and transportation funds to general operating funds to pay for such basics as teacher salaries.

Though districts have trimmed construction plans and programs because of the cuts, which were made by Gov. Frank O'Bannon in response to a hefty state budget shortfall, they are managing to spare most...