The proposal would have made class 4A smaller and the remaining classes bigger.
Wednesday night's loss to the Nebraska Cornhuskers reduces what little chance the Hoosiers had before the game to get into the NCAA Tournament.
Sports analysts are predicting a grim March Madness for Indiana teams across the state.
Indiana has been chosen the number-one team in the nation for the upcoming season in several preseason polls.
On Sunday, Bloomington South senior guard and IU recruit Jordan Hulls was named the top individual player in Indiana.
Kyle Taber's dominance in the paint allowed the IU men's basketball team to control the bulk of the first half of last night's game against Northwestern.