The Board of Education says adding fourth-through-sixth graders would in essence extend the state takeover to schools which haven‘t been classified as failing.
Private and charter school advocates organized a rally for students at the Indiana statehouse Wednesday.
The state superintendent said the questions centered around making sure the state, turnaround school operators, schools and community work together.
The reasons for the schools' improvement vary, say teachers and administrators.
Daniels says the legislation is a step towards giving all Hoosier children a chance at a quality education.
Governor Daniels calls the 2011 session a success while Democrats say some of the bills that were passed will hurt Hoosiers.
Charter schools in Indiana set to expand greatly with Governor Daniels' signature.
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.