Indiana's two largest school districts both say they've seen small enrollment drops, with No. 2 Fort Wayne Community Schools inching closer in size to No. 1 Indianapolis Public Schools.

Preliminary enrollment counts submitted to the Indiana Department of Education Monday show IPS with 31,703 students, about 700 more than the Fort Wayne district. The margin is about 100 closer than last year.

IPS enrollment dropped by 494 compared to the 2010-11 school year. The drop was smaller than the one IPS experienced a year ago, when enrollment fell by 950 students.

According to The Journal Gazette, Fort Wayne school officials have said there are major funding disparities between the two districts even though they are fairly close in size. Fort Wayne's budget is about $275 million, while the IPS budget tops $500 million.

As recently as 2002, IPS had about 8,600 more students than the Fort Wayne district.