Indiana charter schools could receive over $49 million in new revenue from proposed tax increases

Indiana charter schools stand to receive over $49 million in new revenue from proposed tax increases in upcoming ballot questions during the November election. State law mandates that districts in four counties share revenue from approved property tax increases with charters enrolling students within their boundaries. This year, only two of those four counties, Marion and Lake, are considering property tax increases in November. Most of the revenue would likely benefit charters in Marion County.

Eight school districts with referendums have reported to the state that they will share revenue with approximately 60 charter schools. Altogether, these referendums could generate a maximum annual total of nearly $200 million, with an estimated $49.5 million going directly to charter schools. This represents the largest sum charters could receive from ballot questions in state history. Notably, a single charter school could benefit from multiple ballot measures.

However, the spending plans for these potential funds remain unclear. While state law requires districts to submit spending plans for charter schools that would benefit from the tax increase, only four out of the eight districts have included such plans for individual charter schools in their submitted documents. Additionally, nearly all of the $49.5 million is not accounted for in these plans, though several charters have discussed their spending intentions with Chalkbeat.

The Indianapolis Public Education Corporation, which is proposing a ballot question for Indianapolis Public Schools and charter schools, has not included charter school spending plans in its submitted documents. Yet, the corporation plans to track spending of future potential referendum dollars. The amount of funding an individual charter receives depends on the number of students who live within the district asking for the tax increase.

Christel House Academy South could gain an estimated $2.5 million, the highest amount for a single charter school, if all three referendums it's participating in pass. Christel House CEO Emily Masengale plans to allocate much of this funding to staffing and transportation, given the school's extensive transportation services for over 450 students.

Other charter networks with significant potential gains include Phalen Leadership Academies, which has six eligible schools, and Paramount Schools of Excellence, encompassing four schools. KIPP Indy could receive up to $3.6 million if voter-approved referendums for IPEC and Decatur Township pass. These networks plan to utilize the funds for various purposes, such as competitive teacher compensation, transportation, student support, and professional development.