Indiana Lawmakers Close Public School District Without Warning, Input

Legislation written by Rep. J.D. Prescott would close rural Union School Corporation by 2027. Community members criticized the lack of public communication or input on the now-passed directive. Photo by Union School Corporation.
News Release
WINCHESTER — More than 150 residents gathered at the Randolph County Fairgrounds on Saturday, April 19 to demand answers from state Rep. J.D. Prescott, R-Union City, after Indiana lawmakers quietly approved legislation that will dissolve Union School Corporation by 2027.
The decision, embedded in a 245-page property tax reform bill passed with little public notice, shocked Union community members and school officials. The crowd, filled with students, staff, and alumni, voiced frustration over the lack of transparency and input in the process.
“You could not have been going through the proper channels for so few people to have known about this before,” said Stephanie Ward, a Winchester resident and 1989 Union graduate. “This is about transparency.”
Prescott, whose district includes Union Township and parts of four surrounding counties, declined to explain further at the event, citing potential legal action from school leaders.
“The legal process was followed,” he told attendees, who responded with jeers.
Under Senate Bill 1, signed into law by Gov. Mike Braun on Tuesday, April 15, Union Schools, a rural district based in Modoc, will be split between neighboring Blue River Valley and Monroe Central school corporations. The district currently serves about 290 in-person students and more than 7,500 through virtual learning programs operated in partnership with Stride Inc., a national online education provider.
Prescott said the closure was prompted by years of discussion around school consolidation, declining local enrollment, and poor academic performance in Union’s virtual schools.
“You just couldn’t continue to ignore the situation,” he said.
Critics say the process lacked transparency. Sen. Andrea Hunley, D-Indianapolis, condemned the last-minute amendment during debate on the Senate floor, warning it set a dangerous precedent for closing school districts without public input.
“Is this the way that we’re going to do business from now on?” Hunley asked.
Chris Lagoni, executive director of the Indiana Small and Rural Schools Association, noted that this marks the first time in 50 years that the state has mandated the closure of a public school district.
“We would just like some very clear parameters to say this is the performance expectation,” Lagoni explained. “We have 290 other school districts in the state, and they’re all saying, ‘So what’s the threshold, what’s the line?’”
District leaders worry the move signals shifting academic expectations that could threaten other small or underperforming districts. Union Superintendent Galen Mast said the district is financially stable due to its virtual school contract, which generates about $3 million annually.
“We are one of the wealthiest school districts in the state of Indiana,” Mast said. “We’re thriving where we are, which is what really bothers us. Just leave us alone.”
Mast suspects Union was targeted because its virtual schools draw thousands of students and their funding away from other districts. In Indiana, funding follows the student, impacting local budgets when students opt for other schools.
INDLS, Union’s largest virtual program, receives 85% of the state tuition support provided to traditional public schools. Test scores at the virtual schools lag far behind state averages. Only 56% of seniors at Indiana Digital Alternative School graduated in 2024, and fewer than 20% of elementary and junior high students met proficiency benchmarks.
Prescott criticized the schools’ performance, saying, “I don’t know how you get much worse than that.”
Elizabeth Sliger, executive director of INDLS, defended the program, noting it serves students who struggled in traditional settings.
“When it doesn’t work for that kid, they make a different choice,” she said. “I am serving a student who has experienced educational failure previously.”
Union School Board President Christy Ogden said lawmakers gave no indication of the impending closure when they met with district officials earlier this month.
“They just wanted to be able to tell the people around that they had a meeting with us,” Ogden said.
While Prescott and Sen. Scott Alexander, R-Muncie, have cited low academic performance, Ogden and others argue that data from Union’s physical schools were not considered separately from virtual results. Only four students failed the state’s IREAD-3 exam at Union’s elementary school this year, compared to more than half of virtual students.
Union educators and supporters expressed frustration at a rally hosted by the Indiana State Teachers Association on Monday, April 14.
“There are schools that are as small. There are schools with worse test numbers,” said Chelsea Howard, a science teacher at Union. “It’s hardest to watch how it impacts students and families who chose Union.”
The Indiana Department of Education said it will work with the district to support students during the transition. But Mast said the district will fight the law in court, calling the legislation unconstitutional.