Indiana’s Senate Bill 518 is stirring up debate over the future of funding for public schools, particularly charter schools. If passed, the bill would require public school districts with at least 100 students attending charter schools to gradually share property tax revenue with charter schools, beginning a phase-in period through 2028.
This would impact 36 districts and redirect millions of dollars annually from traditional public schools to charter schools, with the speed of the transition varying depending on how many students are enrolled in charter schools within each district.
Senator Linda Rogers, the bill’s sponsor, emphasized that the phase-in period gives school districts ample time to adjust to the financial changes, especially in light of the state’s ongoing property tax reform efforts.
However, some lawmakers, particularly Democrats, expressed concern about the impact on public schools. Senator Shelli Yoder warned that the combination of this bill and other proposed tax reforms might destabilize school districts, potentially leaving them unable to function properly. There are calls from the opposition for more comprehensive studies before any further action is taken.
The bill is also facing pushback from Democrats who argue that it could lead to greater instability, especially in areas like Indianapolis, where charter schools have seen significant growth.
Senator Andrea Hunley even proposed a moratorium on new charter schools in Marion County until 2030, citing concerns about rapid openings and closings of charter schools.
However, this proposal was rejected by the majority of Republicans, who are staunch supporters of school choice policies.
The proposed legislation also comes amid broader discussions on how charter schools are funded in comparison to traditional public schools.
Charter schools, which receive more state funding per student than public schools, would now be eligible to receive a share of property tax revenue if they meet specific conditions.
This includes revenue from certain types of projects like school safety measures or construction projects. While charter schools would not receive funds from virtual schools or adult high schools, the move is expected to significantly impact funding distribution across the state.