Indiana schools could see significant cuts if lawmakers fail to appropriate more than $9 million of funding during the next legislative session.
Indiana is one of the few states with disproportionate funding for rural schools.
Parents sued a school corporation for having to pay fees for buses, saying the state must provide a uniform school system available for all.
The Indiana Senate on Wednesday passed a bill that allows more students to become eligible for the state's school voucher program.
The Senate education chairman plans to introduce legislation requiring teachers to find additional sources if students question what they are learning.
Two sides debated Indiana's voucher program in a preliminary hearing Thursday.