Zionsville Community Schools (ZCS) is committed to transparency, responsibility, and clear communication about how learning is funded within our school community. Every dollar entrusted to our district supports our mission to engage every learner, create opportunities, and ensure that all students belong.

Public education in Indiana and in Zionsville Community Schools is funded through a combination of state, local, and federal dollars. While ZCS receives the lowest state funding per student in Indiana, strong community support and careful stewardship have allowed the district to demonstrate excellence in academic programs, maintain low class sizes, and cultivate robust student experiences.

Indiana schools operate within a state-mandated funding formula that determines how much funding each district receives per enrolled student, known as Average Daily Membership (ADM) as of specific count dates. These dates are October 1 and February 1 (or the nearest school day).

In Zionsville Community Schools (ZCS), every dollar is connected to a story of learning. This information is designed to make public school finance understandable, transparent, and relevant to our community.

School funding dollars are divided into specific funds each with clear rules for how the money can be spent.

These funding sources are directed by state law, which means dollars in one category (for example, debt service) cannot be used to pay for other needs (such as teacher salaries or instructional programs).

State Support for Education

The Indiana Department of Education distributes tuition support to school districts through a funding formula based on:

• Foundation amount: a flat amount per student (for FY2026, the foundation amount is $6,967 per student)
• Complexity index: an additional amount to support students in poverty (ZCS: 1.48%)
• Complexity amount: $4,001

Example:
$6,967 + ($4,001 × 1.48%) = $7,026.21 per pupil for ZCS

Because ZCS has a lower percentage of students in poverty compared to the state average, the district receives less state funding per student than most districts, about $530.96 less per student than the state average.

ZCS Basic Tuition Support (State Funding)

ZCS receives the lowest per pupil funding in the State of Indiana. We receive $7,026.21 per student while the average in Indiana is $7,557.17.

This is one reason why ZCS relies on our voter approved Operating Referendum to help support teacher salaries and benefits.

Why the Operating Referendum Matters

Local referenda allow districts like ZCS to fill the gap between state funding and the actual cost of high-quality education.

Due to overwhelming community support, voters approved a renewal in 2019, which allows ZCS to:

• Maintain class sizes
• Preserve programs in STEM, fine arts, world languages, and wellness
• Support teachers and student services such as counseling and psychology
• Sustain competitive salaries that help recruit and retain excellent educators

Without these locally approved funds, ZCS would lose millions of dollars each year needed to sustain current classroom programs and staffing levels.

How Property Taxes Support Schools

Local taxes fund the Operations, Debt Service, Capital and Operating Referendum funds.

Key terms to understand:

• Gross Assessed Value (AV): The value of property set by the county assessor (based on market value).
• Certified Net Assessed Value (CNAV): Taxable value of the property (Gross AV less deductions).
• Tax Rate: The amount charged per $100 of assessed value.
• Levy: The total amount of property tax revenue the district is allowed to collect.

Formula: Levy = (Tax Rate × Assessed Value) ÷ 100

There are additional legislative constraints placed on our funding resources.  Currently, there are two situations which prevent schools from collecting the full amount of revenue based solely on the CNAV of a property: Property Tax Caps and the Homeowners Credit.

Tax caps set by the state limit how much homeowners, farms, and businesses pay (1%, 2%, and 3% respectively), which can reduce the amount of revenue the district actually receives.

SEA1 Homeowners credit is 10% up to $300 per homeowner.

The Budget Process

School budgets follow a calendar-year cycle and are reviewed by the Department of Local Government Finance (DLGF) and the State Board of Accounts (SBoA) for accuracy and compliance.

The ZCS budget is built with:

• State and local revenue estimates
• Student enrollment projections
• Staffing and operational needs
• Community growth and future facility planning

Transparency and accountability are central to how ZCS manages public funds.

Planning for Growth

Zionsville Community Schools continues to be a highly desirable place to live and learn, one that attracts families because of the strength of our schools, our community values, and the experiences we provide for students. That continued demand requires us to plan thoughtfully and responsibly, not only for today’s students but for those who will arrive in the years ahead.

Over the past two decades, ZCS has experienced significant growth, and projections indicate that trend will continue for the foreseeable future. As a result, our budgeting and long-term planning must anticipate growth rather than react to it.

School funding does not always align with the timing of student enrollment. Students often arrive in our buildings before the corresponding funding follows, creating real and ongoing challenges that require careful planning and strategic decision-making. When new families move into Zionsville, students start school right away, but the district doesn’t receive state funding for those students until the next reporting cycle.

For example, students who enroll in October after "count day" are counted for funding the following February, with dollars arriving later.

That’s why long-term financial planning and local support are essential for a fast-growing district like ZCS.

Other Funding Sources

ZCS also manages several restricted funds and grants outside the public budget process:

• State and federal grants (Special Education, various Title, High Ability, Career Technical Education)
• Food Service Fund
• Donations
• Building-level extracurricular accounts (clubs, athletics)
• Note: The Zionsville Education Foundation and various parent groups such as PTOs and Booster groups work in conjunction with ZCS and support ZCS students and programs but are NOT managed by the district.

Our Commitment

ZCS is committed to financial stewardship, clarity, and open communication. Our financial practices are audited regularly by the Indiana State Board of Accounts, and our financial data is publicly available through the Indiana Gateway Transparency Portal.

We are proud to uphold fiscal responsibility while ensuring every dollar supports teaching, learning, and belonging in Zionsville Community Schools.

Why Your Support Matters

Indiana’s school funding model is designed to provide a consistent base for all districts, but it does not account for every local need. While the state provides funding tied to enrollment, the formula does not adjust for differences in cost of living, staffing needs, or community growth.

In Zionsville, our enrollment continues to grow, yet our per-student state funding remains the lowest in Indiana. This creates a gap between what the state provides and the costs to sustain the high-quality programs, small class sizes, and unique learning experiences that families expect from ZCS.

 To bridge that gap, our community has stepped forward.

Local Investment Makes the Difference

Community support through referenda allows ZCS to maintain the excellence our students experience every day. These locally approved funds ensure that ZCS can:

• Retain outstanding teachers and staff
• Keep class sizes small
• Provide innovative academic and extracurricular opportunities
• Maintain safe, well-supported learning environments

This partnership between state funding and local investment keeps ZCS strong and keeps our focus where it belongs: on students.

Community Support in Action: Thank you!

In 2019, Zionsville renewed the operating referenda (passed in 2012 and 2015) and approved a capital referenda, demonstrating extraordinary community commitment to the future of our schools.

The Operating Referendum has provided ongoing funding to support people and programs directly connected to the classroom. These dollars made it possible for ZCS to:

• Maintain small class sizes that allow for more individualized instruction
• Preserve academic and co-curricular programs in STEM, PLTW, fine arts, and world languages,
• Prioritize student safety with additional student support resources and services across all schools via school counselors, school psychologists, and more.

The 2019 Capital Referendum addressed rapid enrollment growth and facility needs by funding:

• Renovation and expansion projects at multiple school sites to add classrooms and learning spaces.  This includes the 100,000 square foot addition/renovation at Zionsville Community High School and building Trailside Elementary School
• Investments in safety and security infrastructure
• Long-term improvements to accommodate the district’s continued growth while maintaining fiscal stability

Together, these two referenda represent a shared investment in both the people who make learning possible and the places where learning happens.

This dual commitment from our community allows ZCS to remain one of the top-performing districts in Indiana while operating with one of the state’s lowest per-pupil funding rates.

Accountability and Transparency

ZCS maintains strict financial oversight and accountability for all funds, including those generated through the referendum. All district budgets, audits, and financial reports are publicly available and reviewed annually.

Our commitment to responsible stewardship has earned ZCS one of the highest credit ratings (AA) among Indiana school districts a reflection of the trust our community places in us.

Transparency in action:

Looking Ahead

ZCS will continue to share open, accessible information about district finances and how every dollar supports student learning. As enrollment continues to grow and state funding lags, our focus remains steady: ensuring students in Zionsville Community Schools have access to the teachers, programs, and resources they deserve.

Strong schools build strong communities. The continued success of ZCS reflects both the excellence of our educators and the trust of our families and community partners.