Scott Bess: Fix education funding to give all schools their fair share

Indiana has long been a leader in providing families with school choice, ensuring they can select the educational option that best meets their child’s needs. While much attention is given to charter schools and the expansion of private school vouchers, the largest exercise of school choice happens within traditional school districts.

Nearly 90,000 students in Indiana attend a school district other than the one they would normally attend based on their address, demonstrating the value families place on access to the best education for their children.

Even with this freedom of choice, a significant inequity persists in the way all schools are funded. Traditional public schools receive state funding for each student as well as local property tax revenue for costs such as transportation, facilities, capital improvements and rent. But when a student decides to attend school outside their home district, the school or district receiving the student loses out on the local property tax dollars that should accompany the student. In other words, funding in Indiana does not truly follow the student.

For example, Beech Grove City Schools enrolls more than 1,000 transfer students from other districts. While the district receives state funding for these students, it collects local dollars only for the students residing within its boundaries, which strains district resources.

Indiana charter schools feel an especially acute impact since they receive state funding but do not receive local property tax dollars. As a result, charter schools operate with only about two-thirds of the funding their traditional public-school counterparts receive. Yet, despite these challenges, charter schools consistently deliver exceptional results.

Senate Bill 518, authored by Indiana Sen. Linda Rogers, R-Granger, seeks to address this inequity. Supported by the Indiana Charter Innovation Center—the state’s charter association, which advocates on behalf of charter schools—this legislation proposes that local property tax dollars be shared fairly between district and charter schools. This change also would ensure that taxpayer dollars follow students to the schools they attend, creating a fairer funding model.

A report commissioned in 2024 by Indiana Rep. Ed DeLaney, D-Indianapolis, clearly shows charter schools receive, on average, almost $2,600 less per student from property taxes than schools in traditional school districts, and the gap is as large as $7,900 per student within Indianapolis Public Schools, where most charter schools are located. This stark disparity underscores the need for reform.

Gov. Mike Braun has articulated a bold vision for expanding school choice, emphasizing that all Indiana families deserve access to high-quality education, regardless of income or geography. This funding proposal aligns seamlessly with that vision. By leveling the financial playing field, Indiana can empower families to make meaningful educational choices without penalizing schools or families for those decisions.

This funding proposal benefits all schools in Indiana’s public education system, district and charter alike, by allowing all sources of education funding to flow to public schools that serve as a landing spot for families’ educational choices. This will strengthen the foundation of Indiana’s public education system and support continued growth and success for all public schools.•

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Bess is president and CEO of the Indiana Charter Innovation Center.