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House bill supporting charters could divert property taxes from public schools

By Elizabeth DeSantis

Posted February 5, 2022

The Indiana Statehouse

HB-1072 may make it more difficult for schools to run referenda campaigns. (Brandon Smith/IPB News)

A new House bill could divert property taxes used for public schools to charter schools outside the communities from which they’re collected.

Property taxes support the public school systems in the same areas taxpayers live but HB-1072 would allow some of that money to move beyond for charter schools.

Public schools with students living within their districts who attend charter schools would have to contribute to the charter schools out of funds received from referenda for operations and public safety.

In areas that have large numbers of students attending charter schools, supporters say HB-1072 could improve the amount of funds that the charter schools are able to receive. But any referenda would still have to be initiated by the public school.

READ MORE: Public school referendum sharing requirement passes House, heads to Indiana Senate

Tamara Ogle, regional educator for Purdue Extension, an online resource for community development, says the bill would change the process for school referendum on two major fronts.

“There’s a lot of things that this legislation triggers that may change how people decide whether to run referenda and how they vote in referenda,” Ogle said Friday.

Firstly, Ogle says, HB-1072 may make it more difficult for schools to run referenda campaigns to support operations or public safety.

“It will potentially make it more costly for schools that do have students that go to charter schools to run a referendum for operations or for public safety,” she said.

“So, you think they’re probably spending the same amount of money on that campaign as they would before this bill. But with this bill, they would also be giving some of those funds or losing some of those funds to the charter school.”

Secondly, if a school decided to run a referenda campaign despite the decreased return, the question the voter must consider will have changed.

Before, voting on a referendum meant deciding whether or not to pay more property taxes to support the local public school.

Ogle says that question will become: “Are we willing to pay this much amount more property taxes with X number of dollars going to our public school and X number of dollars going to charter schools that may not even be in our community?”

According to Ogle, these changes to the way referenda are run are indicative of a developing education trend in the state.

“This is part of a long-term trend that we’ve seen in Indiana where we’ve had some legislation that is really moving towards school choice and maybe diverting some of those funds traditionally spent towards funding schools K-12 to charter schools as well,” she says.

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