The threat of dissolving public school districts is off the table for now, but they may still be required to share property tax money.

Senate Bill 518, which now heads to the House, would require school corporations to share certain property tax revenues with eligible charter schools starting in 2025. Specifically, it mandates revenue-sharing from property tax levies for controlled projects, school safety referendums, debt service levies, and operating referendums. Beginning in 2028, school corporations must also share a portion of their operations fund levy with charter schools, with a phased implementation.

Only charter schools within the school corporation’s attendance area would be eligible for funding from controlled project levies, and they must maintain a separate account for these funds. Some school corporations may be exempt from the revenue-sharing requirements based on specific criteria.

The bill also adjusts the calculation of grants for charter and innovation network schools to account for the property tax revenue they receive. Additionally, it expands governance oversight by adding board members to charter schools receiving these funds and establishes new procedures for charter school closures.

Opponents of the bill argue that many traditional public schools are already underfunded due to the exodus of students to surrounding areas and charter schools. They warn that further reductions in funding would leave these schools struggling to function. Proponents, however, contend that it is unfair for students who choose charter schools to lack access to equal funding. They also describe the bill as a compromise to a more controversial proposal that would have dissolved some public school districts entirely.

Read the bill here.