Indiana House committee hears testimony on bill that would direct referendum funds to charters

Chicago Tribune

06-03-2025

More than 50 Indiana residents spoke on a Senate bill targeting public schools, requiring funds from a school corporation referendum to be shared with local charter schools.
A majority of speakers at the Wednesday House Ways and Means committee meeting spoke against the bill, saying it would lead to less resources for Indianapolis Public Schools, the state's largest school district.
Speakers in defense of the bill said it would allow charter schools to have adequate funding and similar resources to public schools.
Sen. Linda Rogers, R-Granger, authored Senate Bill 518, which would require corporations to share funds with charters within their attendance boundaries as of May 2025 if 100 or more students leave the district for charters. Virtual charters would not qualify in the latest version of the bill.
Urban communities with several charters, including Gary, will be impacted if the bill passes, according to Post-Tribune archives. The bill stipulates that Gary School Community School Corporation would be exempt from revenue sharing until 2028 due to its distressed status.
Rogers testified at Wednesday's hearing, explaining why charter schools need more funding and how the bill would help.
'When it comes to fiscal performance of charters, in addition to an audit by the State Board of Accounts, charter schools are required to have a third-party audit completed every year,' Rogers said. '(The audit) adds a cost to the charter, unlike district public schools, which are only audited by the State Board of Accounts every year and are much less rigorous.'
Multiple Democratic representatives had questions for Rogers about the bill, including concerns about charters closing mid-year or how students are accepted into the schools. Democrats have criticized Senate Bill 518, saying it would cause public schools to cut their budgets further.
Rep. Ed DeLaney, D-Indianapolis, said Senate Bill 518 is not needed because charter schools already receive funding through the state and federal sources. According to Chalkbeat Indiana, charter schools receive an additional $1,400 per student for operational costs to make up for their lack of local property tax revenue.
'I don't know of any other (public) institution in this state … that is told to give money to a private enterprise and is mandated by the General Assembly,' DeLaney said. 'Why not order to give through the YMCA? It's a very worthy cause. … It would be equally unfair and inconsistent with our democratic society.'
Districts would also be required to share with charters a portion of debt service levy, which is used to pay off long term projects.
Keegan Williams, a student at Shortridge High School in Indianapolis, testified on behalf of public schools. Shortridge is one of IPS' multiple high schools.
Williams will graduate this year and plans to go to the U.S. Military Academy at West Point. He credits his acceptance to IPS and courses he could take through the district's International Baccalaureate program.
'The programming at Shortridge has given me the tools to make myself competitive as if I went to a private school,' Williams said. 'I would just hate to see a place like Shortridge be the first state public high school to have resources diminished, to be threatened by this bill. It threatens our history, and it threatens the very reason why I'm here.'
Hilari Vargo, an IPS parent, also spoke against the bill, saying that in an effort to help charter schools more, both school types will suffer. She focused on resources that will diminish, including transportation.
'How is (Senate Bill 518) the answer?' Vargo said. 'How is that going to provide transportation? IPS will also not have transportation next year for the students out of district.'
Multiple representatives from IPS, including Superintendent Aleesia Johnson, spoke against Senate Bill 518.
Johnson said that if Senate Bill 518 and Senate Bill 1 — which address property tax reform — are both passed, it could 'cause significant disruption' to the school district. The loss of funding would require the district to close schools, reduce transportation and eliminate jobs.
'The question I continue to wrestle with, and the question that remains unanswered, is 'Then what?'' Johnson said. 'Then what for families who have experienced changes and disruption time and time again? Then what for our most vulnerable students in schools…?'
IPS has multiple charter schools within its district that would also lose funding if Senate Bill 518 is passed, Johnson said, because the schools are part of a public district.
About 30 charter schools partnered with IPS would be penalized through Senate Bill 518, Johnson said.
A similar measure has been in effect in Marion, Lake, Vanderburgh and St. Joseph counties since 2023.
Multiple commenters spoke in favor of Senate Bill 518, including charter school teachers, students, parents and leaders. All explained charter school benefits, including more time focused on students and increased opportunities.
Those in favor of charter schools said the institutions have less available resources than public schools.
Dave Ebersol, a teacher at South Bend Career Academy, which is a tuition-free, public charter school. Ebersol said charter schools are intentionally different from public schools and provide 'real-world learning.'
Charter school families are already making sacrifices, Ebersol said, with students receiving about $3,000 less than those in public schools.
'This inequity is even greater because local tax dollars follow students in traditional school districts, but not when they choose to go to a public charter school,' Ebersol said. 'Instead, those dollars stay with a district that is no longer educating them. Our families are already making sacrifices because they believe in our schools.'
Jean Hitchcock, executive director of Signature School in Evansville, also spoke in support of Senate Bill 518. Signature School connects students with opportunities they might not get at public schools, Hitchcock said, including some who might be the first in their families to attend high school or college.
The Evansville school receives about $2,000 less per student, Hitchcock said, and they have less access to technology than public schools, including laptops.
'Fifty percent of Signature students have access to a classroom laptop, whereas most Indiana schools already have one-to-one laptop initiatives in place,' Hitchcock said. 'We're exploring the possibility of opening a middle school, but we are held back because of concern over adequate funding.'
Rep. Sheila Klinker, D-Lafayette, asked how students receive transportation to and from school, a concern of various representatives in the Ways and Means committee.
Signature School doesn't provide transportation, Hitchcock said, but students can take the Evansville city buses or carpool.
Brandon Brown, CEO of the Mind Trust — which invests in public education and advocates for charter schools — also spoke in support of Senate Bill 518. Within IPS' district, about 60% of students attend charter schools, which include a vast majority of Black, Hispanic and low-income students, Brown said.
'When we talk about ensuring that our marginalized students have access and resources, that's exactly what this bill does,' Brown said. 'We think it'll be transformative for tens of thousands of students across our state. … The majority of students who attend charter schools, those students will make significantly more progress than their peers.'
Brown said the $1,400 per student is appreciated in charter schools, but for IPS it's 'a drop in the bucket.' IPS has had its local tax receipts more than double since 2018, receiving almost $9,000 per student in local property taxes, Brown said.
The Ways and Means committee is expected to vote on Senate Bill 518 at a later date before it advances to the Indiana House floor.