EXAMINING THE RELATIONSHIP BETWEEN ASSESSED VALUE, REFERENDUMS AND TEACHER SALARIES IN INDIANA 2015-2019: A QUANTITATIVE ANALYSIS

This study examines the various factors that contribute to the changes in starting teacher salaries in the state of Indiana from 2015 to 2019. In 2009, the funding formula was changed so that locally assessed property values will not contribute to inequitable funding between wealthy districts and less wealthy districts (Hirth & Eiler, 2012).This study examines the relationship between district wealth, Total Tuition Support per student and starting teacher salaries for each of the 289 public school districts in Indiana from 2015-2019. Additionally, the 50 wealthiest districts were compared to the 50 least wealthy districts to determine if there is a statistically significant difference in starting teacher salaries between the two samples. Finally, starting teacher salaries were compared between school districts that have passed a referendum to those districts that attempted, but failed to pass a referendum. Three equity principles were selected to measure the equity within a school funding system, as related to starting teacher salary: fiscal neutrality, horizontal equity, and vertical equity (Berne & Stiefel, 1984). A review of the literature explores the history of school funding in the United States and specifically examines Indiana’s funding history. The sample comprised quantitative data from each of Indiana’s 289 public school districts and used statistical analysis to determine if changes in the state funding formula, high or low assessed valuation or passing a referendum contributed to differences in starting teacher salaries for the years 2015-2019. The purpose of this quantitative study is to examine the variables that contribute to a range of $17,464.00 for starting teacher salaries in the 2019-2020 school year. Superintendents are challenged with recruiting and retaining the most effective teachers in the market. A main factor for teachers in deciding which district to work is the salary schedule (Imazeki, 2005). Additionally, this study will provide insights to the legislature on how money is, or is not spent, after a change in the funding formula.