UPDATE: Panel OKs bill to expand Indiana charter schools

Legislation aimed at expanding charter schools in Indiana and allowing them to share transportation money with traditional public schools cleared a legislative committee Monday, despite complaints from minority Democrats.

The Republican-led House Education Committee voted 8-5 along party lines to advance the comprehensive proposal supported by Gov. Mitch Daniels. The panel made several changes to the bill to address critics' concerns before approving it and sending it to the full House for consideration.

Republicans shot down several Democratic attempts to change the bill, but House Speaker Brian Bosma, R-Indianapolis, said he would continue working on his proposal "so we have a bill that increases options for Hoosier students without detracting from the existing options that are there today."

The legislation aims to expand charter schools by removing caps on them, easing rules for a traditional school to convert to a charter school and allowing more entities to create charter schools, which are public schools that are free of certain state regulations and often free of union contracts.

Currently only school boards, the mayor of Indianapolis and public colleges that offer four-year degrees can start charter schools, and there are more than 60 in the state. Under the proposal, a new state authorizing board could form new charter schools, and mayors of mid-size cities and private universities could sponsor them, though private colleges would have to get approval from the state board of education.

Some Democrats balked at the idea of allowing private colleges to set up charter schools.

"Private colleges really have no accountability to the public," said Rep. Shelli VanDenburgh, D-Crown Point.

The bill gives charter schools an opportunity to share transportation funding, though under the changes made Monday that would only be permitted if traditional public schools declined to provide transportation services for charter school students within their boundaries. Critics said the proposal would siphon money away from cash-strapped traditional school districts, but Bosma says charter schools are public and deserve public transportation money — even if it means that traditional school corporations are under more financial pressure.

The bill is also directed at trying to help charter schools with brick-and-mortar concerns. It creates two funds to help charter schools find money for building construction and renovation, including one that would set up a revolving loan program for charter schools. The proposal doesn't direct any state money to the funds, but allows private gifts and federal and state grants to be part of the programs.

Charter schools may also have an easier time finding buildings through a provision in the bill that requires public schools to turn over unused buildings to charter schools for as little as $1. That's been a big push from Daniels and other charter school proponents, who worry that public schools may be hanging on to abandoned schools — not selling or donating them to charter schools — in an effort to prohibit the competition charter schools bring.

The bill also provides more state tuition support to virtual charter schools, which provide most of their instruction online. And it would provide more accountability for charter schools, subjecting them to some of the same penalties as traditional public schools. Bill supporters say charters would be held to a higher standard than traditional schools under the proposal, while opponents said it didn't go far enough.

Education leaders and some superintendents have spoken out against the charter school proposal, but the bill has momentum since its part of Daniels' agenda and because both the House and Senate are controlled by Republicans.

Rep. Greg Porter, D-Indianapolis, said he hopes lawmakers continue to work on the proposal to make sure it doesn't hurt children in traditional public schools.

"We still have a long way to go," he said.