Senate Appropriates Chair Luke Kenley says the expansion makes it harder for public schools to compete.
The legislature considered bills on Sunday alcohol sales and the state's voucher program, while GOP leaders said they would not take up a ban on gay marriage.
Opponents of the voucher program say it is unconstitutional because it provides public funding to religious schools.
More than 9,000 students are taking part in Indiana's voucher program, but the state has allocated enough money for up to 15,000 students.
The Indiana State Teachers Association wants to overturn the state's voucher law, but one analyst says it faces an uphill battle.
Even before Governor Daniels signed into law measures creating a statewide private school voucher program and making it easier to open charter schools.
MCCSC is deciding whether to join the lawsuit against school vouchers or prepare a resolution.
The Indiana Supreme Court will be the next court to hear the suit that claims an Indiana law allowing school vouchers is unconstitutional.
Private and charter school advocates organized a rally for students at the Indiana statehouse Wednesday.
Two sides debated Indiana's voucher program in a preliminary hearing Thursday.