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New Indiana Budget Could be Tough on Schools

Indianapolis

Lawmakers often say schools are the top priority when it comes to creating the state's budget.

But in the legislative session beginning in January, legislators have a challenge on their hands as they attempt to come up with an education-friendly, balanced two-year budget despite the slumping economy. Schools worry that flat or declining state tax revenues could lead to consequences such as teacher layoffs and larger class sizes.

School districts across Indiana are facing increased costs for salaries, and many are also paying more for health insurance. With increasing costs, even a budget equal to last year could...