Charter schools are counting on a share of property tax revenue they could get as a result of Senate Enrolled Act 1. But a loophole in the bill could give the Monroe County Community School Corporation board an opportunity to avoid sharing money with charter schools if it holds a referendum next year. Charter schools say not getting that money could curb future growth.
Senate Enrolled Act 1 requires that school referenda after 2027 must share the money with charter schools starting in 2028. Until now, charter schools have not received a share of that revenue. According to a presentation from MCCSC’s November board meeting, the corporation is expected to receive nearly $9.7 million from the referendum this year.
Starting in 2028, MCCSC would have to share money with charter schools Seven Oaks Classical School and the Project School. At MCCSC's October board meeting, Barry Gardner, director of school services at Policy Analytics, a consultant working with MCCSC, estimates the school corporation will lose about $1.8 million by 2031.
However, he said if MCCSC votes on a referendum before 2027, MCCSC will not have to share money with charter schools. Referendums can only run in even years, giving MCCSC an opportunity in 2026.
The superintendent of the Project School in Bloomington doesn’t want to see that happen.
“We could be this close to having more equitable funding, and the decision could be made to take the loophole in order to prevent the 315 or so children in our community who come to the Project School from having appropriate funding that could prevent our teachers from being paid more equitably is heartbreaking,” said Catherine Diersing, superintendent of the Project School. “I also understand that we are all in a dire crisis related to funding and, as a result of that, I understand the kind of desperation that comes along with looking at that option.”
Both public schools and charter schools receive funding from the state. Diersing said she gets about $1,400 per student from the state. According to a presentation from MCCSC’s August board meeting, MCCSC receives about $7,422 per student from the state for this school year.
A share of property tax revenue could allow Diersing, as well as Seven Oaks, to raise teacher salaries; the minimum starting pay for a full-time classroom teacher is currently $40,000. Theaverage salary for a public school teacher is $58,620. Teachers at the Project School make between $3,000 and $8,000 less per year than teachers in public schools. Diersing wasn’t able to give teachers a raise this year due to budget cuts.
“People can't manage the increases in cost of living without having some shifts and what they're able to bring into their homes and to support their families,” she said. “That is not sustainable.”
Diersing said a share of property tax revenue would also help support the school’s programs, which already run on limited resources.
“As we look at the needs for additional supports related to a child's wellbeing, in life skills and in care skills, in learning how to be in the world, those things don't come through a magic wand,” she said. “They come through direct services. And the fewer dollars we have, the more we have to look at direct services when we look at opportunities as simple, but as critical, as study trips out in the field and out in the community.”
For charter school Seven Oaks in Ellettsville, Headmaster Stephen Shipp said it receives a bit over $4.1 million from the state. Seven Oaks gets an extra nearly $800,000 through the Charter Innovation Grant. Shipps said his school receives between $2.5 million and $3.5 million less per year, based on current enrollment numbers, than if he got a share of property tax revenue.
“We could feel sorry for ourselves for getting so much less,” he said. “I think people going to the charter school space, though, tend to take the glass half-full approach and be glad for the room that they have to innovate within the charter school world.”
Shipp said he is able to innovate more with the curriculum, but with higher levels of accountability. There is a board that is dedicated solely to the school, and he needs to file reports to an authorizer who keeps track of whether the school is meeting its academic and financial goals. Another level of accountability comes from parents.
“Parents do have to actively choose that school,” he said, “and because something like transportation is typically funded out of local tax revenue, and charter schools don't have access to that local revenue, many charter schools, Seven Oaks included, aren't able to provide transportation. So again, there's a kind of voting with their feet that parents engage in.”
While a share of property tax revenue could help Shipp raise salaries and update facilities, he isn’t counting on that money as essential for future operations.
“We're watching what happens with interest, but we're certainly not assuming that the picture we have today will still be the picture in 2028,” he said. “We're trying not to count our chickens before they hatch, but it does seem like the state legislature, with Senate Enrolled Act 1, has moved one step closer toward funding parity.”
Diersing thinks bills like SEA 1 diminish the possibility of complete collaboration between public and charter schools when both are competing for students and dollars in a time where funding is unevenly distributed.
“In a perfect world of school funding, or an equitable one, we wouldn't have to be in a position where we feel and realistically, in some ways, are pitted against each other for dollars,” she said. “If dollars could follow the students and there were enough dollars, that first part of the sentence wouldn't be problematic.”
MCCSC denied a request for an interview but said in an email that it is too early to speculate on specific decisions the board will make.
“The financial impact of SEA 1 is complex, which makes decision-making equally challenging,” the email said. “We will continue working with Policy Analytics to provide us with financial projections that will help the Board and administration make informed decisions to balance our budget while sustaining excellence in our schools.”
