Charter Schools to Share in Revenue: Measure Advances in Legislature

Indianapolis Public Schools (IPS) officials are warning that a proposed revenue-sharing bill could force them to close nearly two dozen schools. The legislation, which passed the state Senate committee, would require traditional public school districts to share revenue from any tax referendum with charter schools located within their boundaries.

The measure only applies to school districts where at least 100 students living within the boundaries choose to attend an in-person charter school in the district. Bill author Sen. Linda Rogers (R-Granger) argues that charter schools, which are tuition-free and open to the public, should receive tax revenue under the doctrine of "money following the child."

Dozens of IPS parents packed the committee room to testify against the bill, citing concerns that it would divert funds from neighborhood schools. Kate Scott, who has sent her children to both IPS schools and charter schools, called the proposal an example of big-government intervention.

"Stripping money from neighborhood schools when so many dollars are already being shared with charter and voucher programs would damage our district in countless ways that other districts do not experience."

IPS Superintendent Dr. Aleesia Johnson estimated that the bill would cost IPS $40 million next year, growing to nearly $80 million by 2028. She warned that at least 20 IPS schools would have to close if the bill passes.

Charter school operators argue that they deliver better results than IPS at a fraction of the cost and therefore deserve access to property tax revenue. Brandon Brown, CEO of The Mind Trust, pointed out that charter schools in IPS' boundaries bring with them about $8,000 less in tuition support and other funding than IPS students.

"The majority of Black, Hispanic, and low-income students within IPS attend a charter school... So when this committee is told for two hours that you should protect the poor and the marginalized, that is exactly what you would be doing by voting this bill out of committee."

The bill now heads to the Senate floor after being voted out of committee along party lines.