A House bill that would dissolve the Gary and Indianapolis public school districts is likely dead, but a Senate bill calling for school districts to share property tax revenue with charter schools has raised new concerns.
Senate Bill 518, authored by Sen. Linda Rogers, R-Granger, passed the Senate’s Tax and Fiscal Policy Committee Feb. 11 along party lines by a 10-4 vote.
It moves to the Senate floor for second and third readings. Thursday is the deadline for bills to pass and advance to the opposite chamber.
The bill impacts urban communities with several charters, like Gary, which is home to eight. It stipulates, however, that Gary would be exempt from revenue sharing until 2028 because of its distressed status.
The bill comes as Gary’s enrollment is on an upward trajectory after seven tumultuous years of state control.
Superintendent Yvonne Stokes told the Gary School Board Thursday the district’s February enrollment count was 4,542 students, up about 400 from a year ago.
“We continue to get students… we’re working daily to make sure Gary Community Schools can be the choice for our students,” she said.
Senate Bill 518 expands a previous charter referendum revenue sharing law that impacted four counties, including Lake.
The new bill calls for school districts that have at least 100 students who live within their boundaries and attend a charter school to share property tax money, and if voters approve a referendum, that funding would be shared.
Districts would also have to share revenue from their debt service funds with charters, based on the number of students attending the charter school.
With the exception of Gary, the property tax sharing would begin next year in a three-year phasing in of the tax sharing until 2028 when it reaches 100%.
A Gary official reported the district collected about $7.3 million from its fall tax draw. The fiscal impact to the district couldn’t be immediately determined.
Alessia Johnson, superintendent of the Indianapolis Public Schools, the state’s largest district, told the committee the bill would likely force the closure of 20 schools.
Traditional districts, like Gary, receive local property tax funding and can hold referendums to seek more money from taxpayers.
Charter schools don’t receive property taxes and their leaders have decried the disparity in funding. They do receive federal funding and state tuition funding, similar to traditional schools.
The Indiana State Teachers Association opposed Senate Bill 518, saying: “We believe that if additional support for charter schools is necessary, it should come from state-level investments — not local property tax revenues — to ensure a stable, predictable funding model for all schools.”
An amendment calling for charter school board members to be elected failed.
“SB 518 targets urban schools by diverting local property tax funding from traditional public schools to charter schools that are managed by unelected school boards,” said Sen. Fady Qaddoura, D-Indianapolis.
“In addition, the bill does not provide any guardrails or regulations to hold charter schools accountable similar to traditional schools.”
Republican officials said the charters are accountable to their charter authorizers. The Indiana Charter School Board is the state’s largest authorizer with 39 schools and its board is an appointed one.
Meanwhile, House Bill 1136 that called for a school district to dissolve if more than 50% of students in its legal settlement area attend school elsewhere, did not receive a hearing in the House Education Committee.
“It didn’t get out of committee, but that doesn’t mean it can’t come up again in another bill,” said state Rep. Vernon Smith, D-Gary. “My sense is it’s going to die because of the opposition.”
Stokes said she was encouraged to see the bill didn’t advance.
“We will continue to work with our legislators regarding any proposed bills that impact the Gary Community School Corp.,” she said.
Carole Carlson is a freelance reporter for the Post-Tribune.
