Fast Facts:

Law enacted: 2001

Most recently amended: 2023

Number of charter schools: 126

Number of charter students: 46,100

Cap on the number of schools allowed: No

Virtual charters allowed: Yes

Charter Law Analysis:

AUTHORIZERS: Local school boards, the Indiana charter school board, the mayor of Indianapolis (through the state charter school board), and universities. Universities currently authorizing are Ball State University, Grace College, Trine University, and Calumet College. Together, these universities authorize 46 of the state's 126 charter schools. There is no appeals process for denied applications, but the applicant may reapply to the same authorizer or a different authorizer. Each individual charter must have its own charter contract. A new law is being introduced that would allow a school to have multiple campuses under one charter contract.

GROWTH: There are no caps on the number of charter schools and charters have grown modestly as a result. 

OPERATIONS: Charters have a blanket waiver from most rules and regulations that constrain district schools, however virtual charters are now subject to extensive oversight regulations. In 2023, the maximum length of a charter contract was extended from seven to 15 years, creating a strong foundation for their operations.

EQUITY: Charter schools in Indiana receive the same amount of state foundation funding as traditional district schools; as of 2023 school districts in four counties must share any additional property tax funds or from voter-approved referendums with charter schools which helps improve equity for charters. The state also offers a modest Innovation Network Grant for $1,400 per pupil to make up for the lack of local tax dollars, which is a glaring inequity. A small but important amendment in 2024 mandates that any public school buildings that are deemed underutilized and subsequently closed must be offered to a charter school for $1. A small facilities fund provides low interest loans.

Fast Facts:

Number of programs: 4

Statewide participation: 151,800

Types of programs: Education savings account, tax-credit scholarship, voucher, individual tax-credit/deduction

Choice Laws & Analysis:

Education Savings Account
Education Scholarship Account Program
Law Enacted: 2021
Most Recently Amended: 2023
In April 2021, H.B. 1005 established an Education Savings Account for students with special needs. Students are eligible if they have an IEP, have parents on active duty in the military, or are in foster care and come from a household with an income up to 400% of the federal free and reduced lunch program. Qualifying students can receive up to 90% of their state per-pupil funding for educational expenses such as tuition, curriculum, supplemental materials, advanced placement tests, training programs and transportation services. Once students join the program, they remain eligible to receive ESA funds until they graduate from high school or turn 22 years old. However, the budget for the ESA program is only $10 million for school year 2022-2023, with an average account value of $6,203, which will support about 1,600 students (or less than 0.2% of the state population).

Voucher
Choice Scholarship Program
Law Enacted: 2011
Most Recently Amended: 2023
Originally enacted in 2011, this Choice Scholarship Program is now one of the country's largest and fastest-growing school voucher programs, and currently serves all students previously served by the state's other programs. This program allows students from low and middle income families to receive vouchers to use on private school tuition. As of 2023, the eligibility on the program was expanded to serve all families up to 400% of the poverty line. Today, approximately 98% of all of the state's families are eligible and can now receive the full voucher amount (90% of the state per-pupil spending) to support their educational choices. With the scholarship appropriation increasing to $600 million and each student expected to receive an estimated award of $6,681, it is anticipated that this scholarship will extend its reach to support 89,806 students by the fiscal year 2025. This choice programming is expected to serve upwards of 100,000 students by 2025.

Individual Tax-Credit
Private School/Homeschool Deduction
Law Enacted: 2011
Most Recently Amended: 2024
Other education expenses related-program in Indiana also permits families with students in private schools or homeschools to deduct an average of nearly $2,000 per child for tuition and fees. This is a tax program, not an education program, but does provide some relief for tax paying families.

Tax Credit Scholarship Program
School Scholarship Tax Credit Program
Law Enacted: 2009
Most Recently Amended: 2023
Established in 2009, Indiana's School Scholarship Tax Credit Program enables individuals and corporations to receive a 50% credit against their state tax liability for donations made to certified Scholarship Granting Organizations (SGOs). These SGOs provide scholarships to eligible students from households with annual incomes not exceeding 400% of the Federal Free and Reduced-Price Lunch Income Guidelines. Scholarships start at a minimum of $500 and can cover up to full tuition, depending on the specific school's program. Donors can designate contributions to specific schools but not to individual students. While there is no limit on the size of individual contributions, the program has an annual statewide cap on available tax credits, set at $18.5 million for the fiscal year ending June 30, 2025. As of February 6, 2025, $15,890,514 in credits have been awarded, leaving $2,609,486 available. Unused credits can be carried forward for up to nine years. The average scholarship award is approximately $2,054, while the average yearly tuition at participating private schools is around $7,161. For 2023-2024, the program benefited 12,517 students with scholarships totaling $23,065,604.

USE OF STUDENT DATA IN EVALUATING TEACHER PREP

"Indiana requires educator preparation programs to collect and report data on the percentage of teachers who are rated highly effective or effective. However, the state's evaluation system no longer requires objective measures of student growth."

This is just one indicator from The National Council on Teacher Quality, which collects and analyzes states on how well their policies and practices lead to well-prepared teachers. They collect data on state laws and regulations concerning the preparation of teachers, the policies that govern their oversight and the contracts that guide their employment. Learn more about your state here.