Indiana School District Prepares for Possible Closure as Lawsuit Moves Forward

Union Schools Challenges State Law Mandating Shutdown

District Awaits Trial While Continuing Operations

MODOC, Ind. — Union School Corporation, a small rural district in eastern Indiana, is preparing for what could be its final school year as it challenges a state law that orders its closure.

The district will begin enrolling students for the upcoming school year on May 1, even as it awaits a civil trial scheduled for Nov. 24 in Randolph Superior Court.

The dispute centers on language added to Senate Enrolled Act 1 last year, which directs the district to shut down by 2027. Lawmakers cited low test scores, graduation rates and a high number of local students attending schools elsewhere as reasons for the decision.

Lawsuit Claims Law Is Unconstitutional

Union School Corporation filed a lawsuit in Randolph County challenging the law, arguing that it violates the Indiana Constitution. The district contends the provision amounts to prohibited special legislation because it targets a single school system.

“It is unclear why Union Schools was the only school corporate specifically targeted for this special legislation,” attorneys for the district said in court filings.

The district also argued that closing the school system would harm students and the community. In filings, it said residents “will be irreparably harmed by the lack of educational, athletic and civic opportunities schools provide, which form the bedrock of a free state.”

A judge denied the district’s request for a preliminary injunction last year, ruling the motion was moot because the law does not prevent the district from continuing operations before the closure deadline.

State Defends Closure Decision

State attorneys have argued that the law is justified based on the district’s academic performance.

“Unfortunately for all its students, Union School Corp. provides an education that is much worse than the rest of the state, with graduation rates and test scores that rank far below comparable schools,” the state said in court filings.

According to data cited in the case, 62% of Union third graders passed the state’s IREAD-3 exam in 2025, compared to a statewide average of 87.4%. Only 2% of sixth graders met their individual growth targets in math, compared to 35% statewide. Three percent of freshmen completed advanced coursework before high school, far below the statewide figure of 48%.

The state argued the law “remedies this situation by dissolving this failing school corporation and distributing its students and assets to much more successful neighboring schools.”

Online School at Center of Dispute

Supporters of the district suggest the closure effort is tied to its online program, the Indiana Digital Alternative School. Union partnered with Stride Learning in 2017 to oversee the virtual school and receives about 5% of its revenue.

The program has significantly increased the district’s enrollment and funding. While Union has about 300 local students, the online school serves more than 7,500 students statewide and generates an estimated $3 million annually for the district.

District Expresses Confidence

Superintendent Galen Mast said the district plans to continue operating while the legal challenge proceeds.

“We believe in full confidence that we will win,” Mast wrote in a letter to parents. He added that the district is exploring options to remain open regardless of the outcome.

The case will determine whether Union School Corporation can continue operating or must close under the state’s mandate.