WINCHESTER — A judge ruled in favor of Union School Corp. in its fight to stay open, striking down part of an Indiana law that ordered the small, rural district to be shuttered in mid-2027.
Special Judge Brian Hutchison in Randolph Superior Court made the decision in a matter of minutes, prompting tears, sighs of relief and hugs among staff members squeezed into the small courtroom.
The judge granted the district’s motion for summary judgement, which means he decided the case without a trial.
The ruling is a major win for the Modoc-based district in Randolph County, which sued the State of Indiana and Gov. Mike Braun in 2025. District officials argued state lawmakers violated the Indiana Constitution by adding the closure as an amendment to a property tax bill without a public hearing.
“I feel like I can breathe again,” school board member Christa Ellis said to fellow school board member Christie Ogden.
In the hallway of the courthouse, James Widmer, principal of the Union elementary school, fought back tears.
“This has been a terrible and a wonderful experience all rolled into one,” he said. “Watching the community come together has been – it’s been one of the best things I’ve ever seen.”
Ogden, the school board’s president, said the board has been fighting since 2025 to keep the school in the community.
“I feel like this just proves further that we’re meant to be here,” she said.
Representatives for Braun did not immediately return a request for comment.
This academic year, Union School Corp. enrolls around 260 students in its one building district and just more than 4,000 students through three virtual school programs: Indiana Digital Elementary, Indiana Digital Jr. and High School and Indiana Digital Alternative School.
'Legal process was followed'
During the final weeks of the 2025 legislative session, lawmakers added the dissolution of the district as an amendment to Senate Enrolled Act 1. Braun signed the bill days later.
Under the law, Union’s students and funding were to be split between Monroe Central Schools in Randolph County and Blue River Valley Schools in Henry County.
The district was ordered to close after the current 2026-27 school year.
The law drew outrage in the tiny town of Modoc. Parents, students and educators confronted Rep. J.D. Prescott (R-Union City), who wrote the amendment, at an April 2025 meeting. Prescott cited low standardized test scores and declining enrollment as concerns about the district, but offered few other details.
“The legal process was followed,” he told the crowd.
Prescott cited a district-wide IREAD pass rate of 42.6% in a statement at the time, according to the lawsuit. The number did not separate students at Union's brick and mortar schools from its virtual students.
District leaders have maintained achievement is higher for students attending in-person. Last year, all 13 third grade students who took the state reading test passed. At the virtual elementary school 149 out of 238 students, or about 63%, passed.
Prescott had also previously criticized the academics at the virtual schools.
Prescott did not immediately return a request for comment following the court decision.
Unclear reasons
The sudden move to shutter the district prompted speculation about its intent from Union School leaders — including whether Union was targeted because it enrolled thousands of virtual students.
Union was among the first in the state to launch its own online schools — a move that brought in extra revenue through state per-pupil dollars and allowed the tiny school district to financially stay afloat.
The district contracts with Stride, Inc. to run virtual schools. When the 2025 law was passed, about 7,500 students were enrolled through virtual programs at the three schools. Today, there are 4,033 students enrolled at the online schools.
The district’s contract with Stride continues through 2029. The for-profit company partnered with Beech Grove City Schools in Marion County after the legislation threatened Union’s existence, sending newly enrolled students to Beech Grove’s online schools.
Ogden said that in hindsight, the district should’ve kept its cap of 4,000 virtual students that was instituted before COVID. The board lifted the cap on virtual students when the pandemic hit, she said.
“I personally would like to keep that cap low,” she said, noting that the board would discuss it later.
Staff on Friday at the courthouse said morale had been a challenge as the district fought to stay alive. But they also noted that enrollment had grown despite the uncertainty.
This school year 259 students are enrolled at the Union Elementary School and Union Junior & High School — that's up from 249 in the previous year, according to state data.
Contact WFYI education reporter Amelia Pak-Harvey at apak-harvey@wfyi.org
Eric Weddle is WFYI's education editor. Contact Eric at eweddle@wfyi.org or follow him on X at @ericweddle
