Indiana’s 2025 legislative session delivered one of the most significant funding changes in recent memory: a new property tax-sharing law that ensures public charter school students are funded more fairly, regardless of which public school they attend.
Indiana’s 2025 legislative session delivered one of the most significant funding changes in recent memory: a new property tax-sharing law that ensures public charter school students are funded more fairly, regardless of which public school they attend.
Until now, traditional school districts could raise and retain local property taxes to fund essential services like transportation, safety, and facility upkeep. Public charter schools, on the other hand, received no share of those local dollars. That meant two students living on the same street could attend different public schools and receive very different levels of support.
That was not just unfair. It was unsustainable.
The new law begins to correct that imbalance. Starting in 2028, school districts will be required to share a portion of their operations fund property tax revenue with charter schools that serve students in their area. The amount will increase gradually: 25 percent in 2028, 50 percent in 2029, 75 percent in 2030, and full parity by 2031.
In Indianapolis, charter students could see more than $3,700 per student each year by the time the policy is fully in effect. That funding can be used for key needs like student safety, building maintenance, and transportation.
This change affirms a simple truth: funding should follow students. Every public school student should have access to the same level of support, whether they attend a district, magnet, or charter school.
This change unlocks new opportunities for charter schools. It means:
It also raises the bar. With access to local property tax funding, charter schools must continue to show they are not just efficient, but effective and community-driven. Transparency, results, and responsiveness matter more than ever.
As more families choose charter schools across Indiana, our sector must lead with clarity, not competition. This is not about taking money away from public schools. Charter schools are public schools. This is about ensuring that all students in public education are funded fairly.
ICIC will continue to support charter leaders every step of the way — helping you interpret the legislation, plan for future budgets, and communicate confidently with your communities.
Fair funding is not a bonus. It is a basic right for every public school student. Indiana’s new policy moves us one step closer to making that right a reality.
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