Opponents of the bill say it will drain money from the traditional public school system.
The Senate also passed an amendment raising the percentage of charter school teachers who must be licensed.
Indiana Superintendent of Public Instruction Tony Bennett testified on a number of ideas, including the new school funding formula.
Indiana’s public schools will not be required to help fund charter school transportation.
Indiana's charter school program could expand under new laws.
Education changes proposed by Governor Mitch Daniels range from changing how teachers are evaluated to reducing the scope of collective bargaining.
A group calling for reform of education gives Indiana a “B” for its laws making it easier for charter schools to exist and expand in the state.
Bloomington and Indianapolis educators are looking for support for sister charter schools in both locations that will give all students a level playing field.