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Committee hears support for expanding school scholarship tax credits to 3‑year‑olds and for flexible scholarship fund use

5851485 · March 19, 2025
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Summary

Witnesses told the committee House Bill 13‑26 would expand eligibility for SGO tax credit scholarships to age‑3 preschoolers and give the Commission for Higher Education flexibility to use excess scholarship funds for teacher pipeline programs; proponents said the changes promote early literacy and the teacher pipeline.

Witnesses from scholarship granting organizations, nonpublic schools and the Indiana State Teachers Association testified in favor of House Bill 13‑26, which would expand eligibility for School Granting Organization (SGO) tax‑credit scholarships and allow administrative flexibility to shift unspent scholarship funds to teacher pipeline scholarships.

Representative Heine presented the bill on behalf of Senator Brown. The proposal would lower the age at which a child qualifies for an SGO scholarship from 4 to 3 and would permit the Commission for Higher Education to use balances remaining after awarding Next Generation Hoosier Educator Scholarships to fund additional Transition to Teaching scholarships and other named educator scholarship funds. Representative Heine said the change parallels a previously adopted flexibility authorized in House Bill 10‑42 and that the Commission used similar flexibility this year to award more Transition to Teaching scholarships than the statutory floor would have allowed.

Speakers in support emphasized early‑childhood access and the teacher shortage. Chris Brunson of the Indiana Nonpublic Education Association and Scott Schumacher of the Lutheran SGO described existing accredited preschool programs that serve 3‑ and 4‑year olds and said lowering the eligibility age would expand access to early‑learning seats without increasing the state tax credit cap. Ted Feeney of the Institute for Quality Education and John O’Neil of the Indiana State Teachers Association echoed support and said allowing the Commission to reallocate leftover scholarship dollars had improved the teacher pipeline in prior practice.

Supporters noted the bill does not change the total SGO tax‑credit cap and argued the measure simply gives program administrators flexibility so dollars earmarked for scholarships stay in scholarship use rather than revert to the general fund. Testimony did not produce opposition witnesses in the hearing record.

The committee did not vote on the bill during the meeting; proponents asked members to advance the proposal and noted the state’s ongoing teacher shortage and the potential impact of early childhood access on later literacy.

Key clarifications in testimony: representatives described the SGO program as donor‑driven scholarships awarded by participating schools and organizations, and witnesses said expanding to 3‑year‑olds would not create an additional appropriation or change the state tax credit dollar cap.