The Hamilton Southeastern (HSE) School District is facing what Superintendent Patrick Mapes has called “a perfect storm of financial challenges,” as contract negotiations with the district’s teachers remain unsettled.
In a statement released this week, Mapes outlined a series of pressures on the district’s budget, including declining student enrollment, rising insurance premiums, and legislative changes projected to reduce revenue in coming years.
According to Mapes, enrollment declines have already cost HSE more than $172,000 in state tuition support this year, with greater losses possible if the trend continues. Rising healthcare costs are also straining the budget, with insurance premiums expected to increase between 10.5% and 16.8% in 2026.
The superintendent pointed to steps the district has already taken to manage finances, including saving $1.5 million through health insurance reforms, $1.35 million through bond refinancing, and more than $200,000 by tightening audits. But he acknowledged that the district continues to face significant obstacles, including a $9.5 million shortfall that carried over from 2023, new state property tax caps that will cost HSE more than $4.5 million annually starting in 2026, and projected declines in referendum revenue beginning in 2027.
“Even with these efforts, we are still facing mounting pressures,” Mapes said. “This is not a message of despair, but of transparency. We will continue to advocate for funding that reflects the value of your work while making smart financial decisions.”
The Hamilton Southeastern Education Association (HSEA), the union representing district teachers, said the administration’s current contract proposal would leave educators with less take-home pay.
Union leaders say the offer would eliminate step increases tied to years of service, provide no increase in base pay, end additional pay for master’s degrees, and impose what they describe as “a huge increase” in health insurance premiums. Taken together, the union argues, the changes would amount to less take-home pay for teachers.
Under Indiana law, teacher contract negotiations follow a set timeline each fall. Bargaining officially begins in September and must conclude by November 15. If no agreement is reached, the process can move into mediation and then fact-finding, where a neutral party reviews both sides’ financial claims and issues a report. A contract may then be imposed if the two sides remain at an impasse.
HSE is not alone in facing financial stress. School districts across the state are working to balance budgets amid rising costs and legislative changes that affect local revenue. Mapes emphasized that HSE will continue advocating for state funding that better supports teacher compensation.
For now, based on public statements, the union and administration remain far apart.