"We need to use as much money as we can to just keep our facilities up to par for the time being," Fewell said. "There's no reason to wait going forward. We know these cuts have to happen, so why delay the inevitable at this point in time?"

Mississinewa is one of 12 Indiana districts whose referendums failed in Tuesday's election, according to unofficial results. Those districts must now close budget gaps worsened by property tax reforms enacted last year that reduce a key source of local funding. The consequences could range from reduced bus service to school closures, and declining student enrollment statewide could compound the problems.

This year was a record for tax referendums, representing roughly $500 million in annual school funding, after other legislative changes restricted ballot measures to general election years. Across the state, voters approved tax increases in 26 of 38 districts that placed questions on the ballot.

Recounts could be requested in districts like Mississinewa and Michigan City Area Schools, where the measure failed by 122 votes. Fewell said he does not expect a recount to change the outcome.

Terry Spradlin of the Indiana School Boards Association said the roughly 70% passage rate exceeded expectations. Ballot questions are always harder to pass in November than in May, he noted, and many voters were motivated by cost-of-living concerns.

"It's a clear statement here that Hoosiers understand the value and the importance of public education in their school communities," Spradlin said.

To help close a roughly $2 million deficit, Mississinewa plans to cut transportation for about 1,200 students next year and reduce its preschool program, in addition to eliminating the remaining school resource officer the following school year. The district will also immediately begin charging fees to groups that use school facilities.

"There's some people in the community that did not believe that we're really going to cut those things, they viewed it as fear-mongering or scare tactics," Fewell said. "Unfortunately, that's not the case. These cuts are coming."

Grant County, home to the Mississinewa district, is among the poorest in the state. But wealthier counties did not necessarily fare better. Sheridan Community Schools, in the state's wealthiest county, also lost its referendum. Superintendent Dave Mundy said in an email that the district is analyzing its next steps.

Referendums benefiting Anderson and Elwood schools in Madison County appear to have failed. Approval for Anderson's measure was trailing by 82 votes as of Thursday, according to unofficial results, and the district believes it has failed, said Brad Meadows, director of communications. Anderson had anticipated an $8.25 million deficit in 2028 without the referendum funding.

In a Wednesday statement, Anderson Superintendent Joe Cronk said he was disappointed but encouraged staff to "support one another and keep our attention on our kids."

"There will be difficult decisions, and I do not have all the answers this morning," Cronk said. "Those decisions deserve careful thought, honest discussion, and a clear understanding of how they affect our students and staff."

In Elwood, Superintendent Troy Friedersdorf said in a statement that the administration and school board would determine additional reductions affecting staffing, programs, and services.

"Behind each of those decisions are people we care about and opportunities we want for our children. That weighs heavily on all of us," the statement said.

Even districts that won approval are not spared hard choices. Zionsville Community Schools and West Lafayette School Corporation received the strongest support, with passage rates of roughly 69%. Washington Township schools' referendum passed with 67% of the vote.

"Community support of the referendum means preserving the funding that ensures continued high quality education for our students," West Lafayette Superintendent Shawn Greiner said in a statement.

Washington Township Superintendent Sean Taylor said in a letter to the community that the district would use the resources thoughtfully and support educators "to ensure every child feels connected, challenged, and celebrated."

Although voters passed a referendum benefiting Indianapolis Public Schools and local charter schools, the district still plans to close schools and enact other cuts to close a lingering $20 million budget hole.

District leaders hope to press the legislature for more funding in the upcoming session. The Indiana School Boards Association also plans to advocate for increased state tuition support, which Spradlin said has not kept pace with inflation. The state's two-year budget adopted in 2025 increased per-pupil funding by 2% each year; Spradlin said the group would like to see annual increases of 6% in the next budget.

"If we're only getting state funding that's at around 3%, 2% to 3%, but these costs are far in excess of that number, then we're not keeping up with just maintaining status quo," he said.