Heated debate as committee advances amendment to require limited sharing of local property-tax referenda with charter schools

The Senate Tax and Fiscal Policy Committee advanced Senate Bill 518, with Amendment 16, after a daylong hearing that drew more than 50 public witnesses and sharply divided lawmakers and local stakeholders. The amendment narrows the measure’s reach: it removes public‑to‑public school transfers, applies only where a school corporation has 100 or more students with legal settlement who choose to attend a brick-and-mortar charter school, and limits any transfer of capital or debt-related local revenue to charter schools geographically located within the school corporation.

Author Senator Rogers said the amendment and bill aim to let local tax dollars follow students who choose charter schools in areas with significant charter enrollment. “I think it's time that a parent who chooses to send their child to a public charter school has their tax dollars following their child and educating their child,” she told the committee.

Why it mattered in committee SB 518 became one of the committee’s most contentious items: supporters argued that charter students currently draw state tuition support while the property taxes they pay stay locked in the district of residence; proponents urged the committee to equalize funding for all public students. Opponents said the change would destabilize traditional public districts—particularly Indianapolis Public Schools (IPS)—by redirecting referendum or capital levies approved by local voters. Several witnesses described catastrophic school closures and program cuts they said would follow. Testimony included elected school board members, superintendents, teachers, parents and representatives of unions and charter operators.

Key testimony and concerns - In opposition: IPS Superintendent Alicia Johnson told the committee the financial picture would be dire for her district, which could lose tens of millions of dollars if the bill becomes law. “Combined with Senate Bill 1, IPS loses nearly $40,000,000 next year, growing to nearly $80,000,000 by 2028,” she said, adding that closures and layoffs would follow. Teachers, parents and local PTA leaders testified that the bill would undercut locally approved referenda and destabilize neighborhoods.

- In support: charter operators, parents and charter advocates said the current funding imbalance is unfair. Speakers representing charter school networks argued many charter students are low‑income or students of color and that charter schools often serve those students with fewer local resources; they urged parity so charter schools can cover transportation, facilities and services.

- Neutral/technical: witnesses raised questions about how the bill would treat students who move between schools (ADM counts), whether funding reductions would revert to the state general fund, and how transfers would interact with existing charter-authorizer and district agreements. The committee adopted Amendment 16 to narrow the bill’s scope (100‑student threshold and geographic limits for capital revenue).

Vote and next steps After more than two hours of public comment, the committee voted to advance the amended bill. The committee tally was 10–4 in favor of sending SB 518 to the floor. Sponsors and opponents signaled that many issues likely would be revisited on the Senate floor and in subsequent legislative negotiations; multiple senators asked for technical fixes on second reading to clarify affiliate definitions, treatment of ADM counts and safeguards to prevent unintended facility or debt transfers.

Speakers quoted in this article are drawn from committee testimony including Senator Linda Rogers (author), IPS Superintendent Alicia Johnson, American Federation of Teachers of Indiana president Sally Sloan and a broad set of parents and charter operators who testified for and against the bill.