Funded: Charters

A Detailed Look at Each State's Charter School Funding Policies

Below, see summaries of the state’s education funding policy in each issue area. Click the Expand icon next to any summary to see more detail, if available, about that state’s policy regarding that issue area. Click the Citation icon
next to any summary to see the sources of the information regarding that issue area.
Indiana
Funding Basics
Authorizer

Charter funding policies and reporting practices within each state may vary depending on the entity that authorized the charter school. Charter schools in Indiana may be authorized by local school boards with the authority to do so, the Indiana Charter School Board, and other entities, such as institutions of higher education or executives of consolidated cities.

References:
“Charter Schools: What organizations may authorize charter schools, and is there a statewide authorizing body?” Education Commission of the States, 50-State Comparison, January 2018. 
Funding Formula

Funding for most charter schools in Indiana is calculated based on a formula similar to the one used to calculate funding for traditional public schools.

Like traditional public schools, charter schools are funded through a student-based formula that provides a per student base grant, with increased funding for students from low-income households, students with disabilities, and others. In addition to tuition support, charter schools that were converted from a traditional public school will receive a proportionate share of state funding for students with disabilities and other program-specific allocations.

Virtual charter schools receive 90% of the base amount, as well as increased funding for students from low-income households, students with disabilities, and students in career and technical education programs. Unlike other charter schools, charter schools focused on adult education are funded separately at $6,750 per student.

References:
Ind. Code Ann. § 20-24-7-13 (Lexis 2019)
Ind. Code Ann. § 20-24-7-2 (Lexis 2019)
Ind. Code Ann. § 20-24-7-3 (Lexis 2019)
Ind. Code Ann. §§ 20-43-2-1 — 20-43-2-8 (Lexis 2019)
Indiana Department of Education Office of School Finance, “Indiana K-12 State Tuition Support Annual Report,” Indiana Department of Education, August 2018, accessed January 30, 2019,
Funding Distribution
Funding Distribution

Charter schools in Indiana receive all funding directly from the state.

References:
Ind. Code Ann. § 20-24-7-13 (Lexis 2019)
Ind. Code Ann. § 20-24-7-2 (Lexis 2019)
Ind. Code Ann. § 20-24-7-3 (Lexis 2019)
Ind. Code Ann § 20-24-7-13.5 (Lexis 2019)
pers. comm. Leslie-Ann M. James, Indiana Department of Education, email, October 5, 2018.
Withholdings

Charter schools in Indiana will have a share of their funding withheld, with the maximum set by state law.

Certain entities that authorize charter schools, including the Indiana Charter School Board state or nonprofit entities of higher education, and executives of consolidated cities, may impose on the charter an administrative fee of up to 3% of the charter’s funding.

References:
Ind. Code Ann. § 20-24-7-4 (Lexis 2019)
Local Taxes

Charter schools in Indiana do not receive a share of local tax revenue.

References:
pers. comm. Leslie-Ann M. James, Indiana Department of Education, email, October 5, 2018.
Data and Reporting
Legal Status

Charter schools in Indiana constitute their own local education agencies.

References:
pers. comm. Amreen Vora, Indiana Department of Education, email, January 9, 2019
Student Count

Charter school students in Indiana are counted as students of the charter they attend for state reporting purposes.

References:
pers. comm. Amreen Vora, Indiana Department of Education, email, January 9, 2019
Funding

State funding for charter schools in Indiana is reported separately from state funding for any district.

References:
pers. comm. Amreen Vora, Indiana Department of Education, email, January 9, 2019.
Expenditures

Charter school expenditures in Indiana are reported separately from expenditures of any school district.

References:
pers. comm. Amreen Vora, Indiana Department of Education, email, January 9, 2019.