Let’s Talk About Funding: How Dollars Really Follow Students

Cutting through the noise on school funding in Indiana

We hear it all the time:
“Charter schools are taking money from public schools.”

It’s a powerful soundbite, but it’s not how Indiana’s public education system actually works. The truth is a lot more practical, and far less controversial than people think.

Let’s walk through what really happens when a student enrolls in a public charter school—or any school outside their neighborhood.

First things first: Charter schools are public schools.

They are tuition-free, open to all, and funded by the state of Indiana based on the number of students they serve. They do not receive private school vouchers. They don’t charge families a dime. They are held accountable to state standards and public authorizers, just like district schools.

In other words: they are public schools serving public school students and should be treated that way.

In Indiana, funding follows the student. Period.

This isn’t a special rule for charter schools. It’s how Indiana’s entire K–12 system works. When a student enrolls in a school, the state allocates funding to that school to support that student’s learning.

That’s true whether the student:

• Enrolls in their neighborhood district school
• Chooses a magnet program across town
• Uses a boundary exemption to attend a school in another district
• Or enrolls in a public charter school
  
  

Here’s an example:
If a student living in District ABC gets approval to attend a neighboring school in District XYZ, the state portion of funding follows that student to District XYZ. This isn’t controversial, it’s how we ensure schools have the resources they need to educate the students actually in their classrooms.

Charter schools work the same way.

They don’t “take” money. They receive funding for students they are actively educating, just like any other public school.

So why does it feel like charters “take” money?

Because budgets are tight. Education funding hasn’t always kept pace with rising needs. And in the past, charter schools weren’t eligible for local property tax funding, creating a noticeable resource gap. That’s beginning to change, but some of the old misunderstandings still linger.

What hasn’t changed is this: every public school should be funded fairly for the students it serves. That includes district schools, magnet schools, and public charter schools.

A rising tide lifts all schools

Charters aren’t the enemy of public education, they are one part of it. In fact, charter schools help keep families in the public system who might otherwise opt out entirely. That’s good for students, good for communities, and good for the long-term strength of public education in Indiana.

This shouldn’t be about turf, it should be about kids. Schools deserve funding for the students they serve. That’s true for district schools, innovation schools, and public charters alike.

So what should we really be asking?

Instead of arguing over who “deserves” the dollars, we should be asking:

• Are public dollars reaching the students they’re meant to serve?
• Are those dollars being used in ways that improve outcomes for kids?
• Are we investing in public schools that reflect what students and families need today?
  
  

That’s the conversation Indiana deserves. And at ICIC, we’ll keep showing up with facts, stories, and solutions to move it forward.

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