Bill gives tax credits for contributions to charter school building projects

A state Senate committee heard testimony Tuesday on a bill that provides up to $10 million in state tax credits for contributions to established charter school building funds.

Senate Tax and Fiscal Policy chairman Sen. Travis Holdman, R-Markle, said the committee won’t take action on the measure this year, but it’s expected to be considered in next year’s budget session.

Sen. Brian Buchanan, R-Lebanon, the bill’s author, said the state provides tuition support for charters, but they don’t have the ability to raise money for a building fund.

“This is a way to incentivize that,” he said. “The accountability is baked in. A person will only make a contribution to a school they believe in,” he said.

He said, for example, if a taxpayer contributes $1,000, then a credit of $500 could be claimed.

Sen. Lonnie Randolph, D-East Chicago, said he liked the bill’s purpose and asked if its provisions could be extended to traditional public schools.

He pointed to the School City of Hammond’s failed operating referendum last year, which has resulted in layoffs and possible school closings.

“This could be a way for public schools to get some contributions … it would be another way for them if they’re concerned about an operating referendum,” Randolph said.

Sen. Fady Qaddoura, D-Indianapolis, said the bill provides up to a $10 million subsidy to charters without voter approval.

Sen. Linda Rogers, R-Granger, noted charters don’t receive property tax funding to build new facilities like traditional schools.

Five people testified on the bill.

John O’Neill, spokesman for the Indiana State Teachers Association, said the bill would carve out another credit for charter schools amounting to a state revenue loss. He said it created fairness and parity issues.

Four other speakers supported the bill, including Molly Collins, executive director of the Institute for Quality Education, a nonprofit school choice organization. She said the group’s network represents the state’s 120 charter schools.

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She said the bill would offer charters another tool to help building projects.

Parent Dante Cook, of Indianapolis, said he likes the choice charters provide for his four children, but the schools lack the “holistic” experience since many schools lack athletic facilities and other amenities for children.

In 2022, charter schools received $24.1 million in contributions and donations from private sources, including funds for operational and capital costs.

Last year, the GOP-dominated legislature increased the bonus Charter and Innovation Network School Grants from $1,200 to $1,400 per student.

The state budget also added $25 million in capital grants for charter facility costs and sent a portion of property tax operations funding growth to charters in Lake, Marion, Vanderburgh and St. Joseph counties.

A new law also forces school districts in those four counties to share new referendum funding with charters.

Carole Carlson is a freelance reporter for the Post-Tribune.