Noblesville Schools is facing “significant financial challenges” and will be making staff reductions in the coming weeks, aiming to save $3 million in annual expenses, according to a news release from the school district.
The school district will try to minimize any impacts on students when reducing staff and, when possible, take advantage of not backfilling some positions when employees leave on their own.
Noblesville Schools is pointing to several factors contributing to its multi-million-dollar deficit for 2026, including new state property tax legislation that was passed last year. The legislation provides tax relief for property owners but has impacted school and municipal budgets across the state.
The school district is also pointing to a decline in student enrollment funding, driven by lower birth rates, fewer school-age families in Noblesville, and more students graduating than kindergarteners starting school in the district.
In neighboring Westfield, officials have recently discussed similar enrollment problems. The impact on enrollment comes from parents choosing to age in their homes in their Hamilton County communities after their children graduate from high school. That means fewer kids in the school districts.
Noblesville Schools says inflation has also contributed to the district’s 2026 budget challenge.
“Thanks to sound financial management and savings we are not in crisis mode right now,” Dan Hile, superintendent of Noblesville Schools, said in the news release. “But this direction is not sustainable, and changes must be made to balance the budget so that we can ensure strong financial stability into the future.”
The district has already implemented cost-saving measures over the past year, including providing only modest salary increases for teachers and staff, freezing salary increases for administrative leaders and school board members, reducing positions and renegotiating contracts.
“These efforts have been helpful, but they are not enough to address the gap we’re facing,” Hile said in the news release. “Staffing is our highest ongoing cost, and we must make adjustments there to realign with our current revenue.”
The school district may be asking voters to approve a new referendum this year. Noblesville Schools’ current referendum, passed in 2018, provides about $25 million a year for staff and operating expenses but is set to expire at the end of 2026.
The referendum fund is about 15% of the overall Noblesville Schools budget and makes up 21% of operational funding for the district.
“We will be carefully studying budget projections and needs for the future and will communicate more about the referendum this summer,” Hile said in the news release. “The community ultimately decides whether or not to pass a referendum.”
Contact Jake Allen at jake.allen@indystar.com. Follow him on X, formerly Twitter, @Jake_Allen19.
This article originally appeared on Indianapolis Star: Noblesville Schools to cut staff amid ‘significant financial challenges’
Reporting by Jake Allen, Indianapolis Star / Indianapolis Star
USA TODAY Network via Reuters Connect
