Indiana teachers’ union, Democrats oppose charter school funding despite better charter results

An Indiana teachers’ union and Democratic lawmakers are opposing a proposal to distribute education funding fairly between charter and government-run public schools.

Indiana, like many other states, provides more funding for traditional public schools than charters.

One report from the University of Arkansas found charters across 16 states received just 70% of what public schools were given on average.

In Indiana, schools spend over $14,000 per pupil. Most funding comes from either the state ($8,400) or local taxes ($4,400) with the remainder coming from the federal government.

However, the Hoosier State currently doesn’t allow charter schools to receive local funding. They get a $1,400 boost to their per-pupil funding from the state, but that still leaves them several thousand dollars behind district schools.

SB 518 would change that.

If enacted, it would allow “charter schools located within the attendance area of the school corporation [to] receive a distribution of revenue from that [property tax] levy.”

“Indiana has embraced the philosophy of ‘dollars follow the child’ when it comes to education funding for over a decade,” explained Sen. Aaron Freeman, R-Indianapolis. “SB 518 would require school corporations with at least 100 students attending charter schools to share property tax revenue with eligible charter schools.  

“Families should not be penalized for choosing schools that best meet their child’s needs. Every student deserves equal access to the funding necessary to support their education, no matter where they learn.” 

School choice in all forms is booming in Indiana. While charters are technically public schools (publicly funded and available to all students), they are given more freedom to innovate than their government-run counterparts. 

According to the National Alliance for Public Charter School’s 2024 report, Indiana charter enrollment grew nearly 12% between 2019 and 2024, while traditional public school enrollment declined by over 2% (nearly 24,000 students). 

However, teachers’ unions are fighting back against charter growth because, according to critics, it threatens their monopoly on public school funding. 

A petition from the Indianapolis Education Association to the Indianapolis school board seemingly forgot that charter schools are also public schools. 

“Our public schools are the cornerstone of the communities that they serve. They are inclusive environments that cater to diverse needs, fostering a sense of community and provide quality education for all students they serve. We must prioritize and strengthen our public education system to ensure it remains robust and capable of effectively serving every child,” the petition read. 

“The unchecked expansion of charter schools poses significant financial challenges to the sustainability of IPS schools. These challenges include diverting critical funding and resources away from our schools, potential disparities in student outcomes, and issues related to accountability and transparency.” 

There may well be disparities in student outcomes, since charter school students outperform their district counterparts in both reading and math. 

The Indiana Senate Democratic Caucus also released a statement on Feb. 20, complaining the bill doesn’t increase education funding.  

“SB 518 was sold as a way to ‘fairly’ fund education, but the reality is far different,” the statement read. “This bill does not increase funding for schools. It does not improve outcomes for students. It does not invest in the future of Indiana’s education system. 

“Instead, it shifts the financial burden of charter school funding away from the state and onto local homeowners – while 90% of Hoosier students continue to attend traditional public schools.”  

Charter advocates may point out: 100% of government funding – whether local, state or federal – comes from the taxpayers. 

Nevertheless, the Indiana Senate passed SB 518 the same day, by a 28-21 vote.  

The bill is currently assigned to the House Committee on Ways and Means.