Fewer taxes mean less money for schools

KNOX COUNTY, Ind. (WTHI) - The slow economy reduced tax collections in Indiana and has prompted a warning for local school officials to hang onto their cash.

School officials around Indiana are being told to make no major purchases and put off signing new teacher contracts. State School Superintendent Tony Bennett made the suggestions during a conference call with local school superintendents.

Schools get almost all of their funding now from the state. With Indiana's tax collections running $310 million behind projections, the schools could be facing lower funding.

"Strong concern at the state level due to revenue short falls and we've been pretty much put on alert that there could be cuts made," South Knox School Superintendent Brad Case said.