Indiana

Indiana law does not place any caps on charter school growth.

Indiana law allows new start-ups and public school conversions.

Indiana law allows local school boards, public four-year universities or their designated representative, the Mayor of Indianapolis, a state charter board, and a governing board of a nonprofit college or university that provides a four-year educational program for which it awards a baccalaureate or more advanced degree to authorize charters.

The law requires a registration process for local school boards to affirm their interest in chartering to the state and an application process for a governing board of a nonprofit college or university that provides a four-year educational program for which it awards a baccalaureate or more advanced degree to authorize charters. These processes only apply to entities that have not previously issued a charter for any charter school prior to July 1, 2015.
The law requires authorizers to submit an annual report to the state department of education and the state board of education that contains the following information: results of all standardized testing, end of course assessments, and any other assessments used for each authorized schoolstatewide assessment program measures, student growth and improvement data for each authorized school, attendance rates for each authorized school, graduation rates if appropriate, including attainment of Core 40 andIndiana diplomas with a Core 40 designation and Indiana diplomas with Core 40 with academic honors diplomas designations for each authorized school, and student enrollment data for each authorized school including the number of students enrolled and the number of students expelled, status of the authorizer’s charter schools, names of the authorizer’s board members or ultimate decision making body, evidence that the authorizer is in compliance with state law, a report summarizing the total amount of administrative fees collected by the authorizer and how the fees were expended, if applicable, total amount of other fees or funds not included in the report received by the authorizer from a charter school and how the fees or funds were expended, and the most recent audits for each authorized school submitted to the authorizer.

The authorizer shall annually compile the following into a report and submit it to the legislative council.

* Proposals received.
* Proposals accepted, including the length of time for which a charter is granted.
* Proposals rejected, including the reasons for the rejection.
* School goals, educational program design, and the name and address of the education management organization operating the school and the name of the chief operating officer of the education management organization, if applicable.

The law provides that an authorizer of a charter school that does not meet the minimum standard for charter school renewal may petition the state board at any time to request permission to renew the charter school's charter notwithstanding the fact that the charter school does not meet the minimum standard. If timely notification is made, the state board shall hold a hearing to consider the authorizer's request at the state board's next regularly scheduled board meeting.

In determining whether to grant such a request, the state board shall consider the following:

* Enrollment of students with special challenges, such as drug or alcohol addiction, prior withdrawal from school, prior incarceration, or other special circumstances.
* High mobility of the student population resulting from the specific purpose of the charter school.
* Annual improvement in the performance of students enrolled in the charter school, compared with the performance of students enrolled in the charter school in the immediately preceding school year.

After the hearing, the state board must implement one or more of the following actions:

* Grant the authorizer's request to renew the charter of the charter school. The state board may determine the length of the renewal and any conditions of the renewal placed upon either the charter school or the authorizer.
* Order the closure of the charter school at the end of the current school year.
* Order the reduction of any administrative fee collected under state law that is applicable to the charter school. The reduction must become effective at the beginning of the month following the month of the authorizer's hearing before the state board.

A charter school that is closed by the state board under this section may not be granted a charter by any authorizer.

According to state law, if any authorizer renews the charter of, fails to close, or grants a new charter to a charter school that the state board has ordered closed, the authorizer's authority to authorize new charter schools may be suspended by the state board until such a time as the state board formally approves the authorizer to authorize new charter schools. A determination to suspend an authorizer's authority to authorize new charter schools must identify the deficiencies that, if corrected, will result in the approval of the authorizer to authorize new charter schools.

According to the law, if the deficiencies are not corrected within two years after the date the state board suspends the authorizer's authority to authorize new charter schools, the state board, following an affirmative vote of two-thirds of the members, may revoke the authorizer's authority to function as an authorizer.

The law requires the state board of education to provide a formal evaluation of the overall state of charter school outcomes in Indiana every five years.

Indiana law allows all authorizers except local school boards to withhold up to 3% of a school’s funding as an administrative fee.
The law provides that an authorizer's administrative fee may not include any costs incurred in delivering services that a charter school may purchase at its discretion from the authorizer. It provides that the authorizer shall use this funding exclusively for fulfilling authorizing obligations.?

The law provides that a charter school may not be required to purchase services from its authorizer as a condition of charter approval or of executing a charter contract, nor may any such condition be implied.?

The law allows a charter school to choose to purchase services from its authorizer. In that event, the law requires the charter school and the authorizer to execute an annual service contract, separate from the charter contract, stating the parties' mutual agreement concerning the services to be provided by the authorizer and any service fees to be charged to the charter school. The law states that an authorizer may not charge more than market rates for services provided to a charter school.?

According to the law, not later than 90 days after the end of each fiscal year, each authorizer shall provide to each charter school it authorizes an itemized accounting of the actual costs of services purchased by the charter school from the authorizer. The law states that any difference between the amount initially charged to the charter school and the actual cost shall be reconciled and paid to the owed party. If either party disputes the itemized accounting, any charges included in the accounting, or charges to either party, the law allows either party to request a review by the state department of education and requires the requesting party to pay the costs of the review.

Indiana law provides application elements for all schools.
Indiana law provides application elements specific to conversion schools, educational service providers, and replications.
Before issuing a charter, the law requires all authorizers but the Indianapolis Mayor to conduct a public hearing concerning the establishment of the proposed charter school. At the public hearing, the law requires the governing body of the school district in which the proposed charter school will be located be given an opportunity to comment on the effect of the proposed charter school on the school corporation, including any foreseen negative impacts on the school district. The law requires the application review process to include thorough evaluation of each written charter application and an in-person interview with the applicant group.

Indiana law requires authorizers to notify an applicant of the acceptance or rejection of the proposal not later than 75 days after the application is submitted. It also requires authorizers to notify the state department of education of receipt of a proposal, acceptance of a proposal, and rejection of a proposal, including the reasons for the rejection.

Indiana law allows applicants to appeal rejected proposals to a state charter school review panel.

Indiana law requires a “charter” (which serves as the “charter contract”).
Indiana law requires the charter to define the roles, powers, and responsibilities for the school and its authorizer.

Indiana law requires the charter to set forth the methods by which the charter school will be held accountable for achieving the educational mission and goals of the charter school, including evidence of improvement in assessment measures (including the statewide assessment program measures), attendance rates, graduation rates if appropriate, increased numbers of Indiana diplomas with a Core 40 designation and other college and career ready indicators including advanced placement participation and passage, dual credit participation and passage, and International Baccalaureate participation and passage if appropriate, increased numbers of Indiana diplomas with Core 40 with academic honors and technical honors designations if appropriate, student academic growth, financial performance and stability, and governing board performance and stewardship, including compliance with applicable laws, rules and regulations, and charter terms.
The law requires a charter school to set annual performance targets in conjunction with the charter school’s authorizer that are designed to help each school meet applicable federal, state, and authorizer expectations.

The law requires that minimum standards for renewal and the standards to avoid closure imposed by authorizers on the charter school in the charter school agreement must include a requirement that the charter school not fall within the application of a state law for chronically low-performing public schools.
Indiana law provides that a charter may be granted for not less than three years or more than seven years.

The law requires authorizers to submit an annual report to the state department of education and the state board of education that contains the following information: results of statewide assessment program measures, student growth and improvement data for each authorized school, attendance rates for each authorized school, graduation rates if appropriate, including attainment of Indiana diplomas with a Core 40 designation and Indiana diplomas with Core 40 with academic honors designations for each authorized school, and student enrollment data for each authorized school including the number of students enrolled and the number of students expelled, status of the authorizer’s charter schools, names of the authorizer’s board members or ultimate decision making body, evidence that the authorizer is in compliance with state law, a report summarizing the total amount of administrative fees collected by the authorizer and how the fees were expended, if applicable, total amount of other fees or funds not included in the report received by the authorizer from a charter school and how the fees or funds were expended, and the most recent audits for each authorized school submitted to the authorizer.The law requires authorizers to submit an annual report to the state department of education that contains the following information: results of all standardized testing, end of course assessments, and any other assessments used for each sponsored school; a description of the educational methods and teaching methods employed for each sponsored school, attendance rates for each sponsored school, graduation rates if appropriate, including attainment of Core 40 and academic honors diplomas for each sponsored school, and student enrollment data for each sponsored schools including the number of students enrolled and the number of students expelled, and schools that closed or for which the charter was not renewed, and the reasons for the closure or nonrenewal.
Under state law, a charter must meet generally accepted government accounting principles or face revocation.

Indiana law requires authorizers to oversee a charter's compliance with applicable laws and the charter application.

Indiana law requires authorizers to notify schools of problems that lead to revocation and provide schools with opportunities to remedy such problems.

Indiana law is silent on authorizer authority to take appropriate corrective actions or exercise sanctions short of revocation. In practice, however, authorizers have investigated schools, mandated corrective actions, and placed others on probation. Schools typically comply out of fear of nonrenewal or revocation.

Indiana law provides that the renewal application process must, at a minimum, provide an opportunity for the charter school to present additional evidence, beyond the data contained in the performance report, supporting its case for charter renewal, describe improvements undertaken or planned for the charter school, and detail the charter school's plans for the next charter term.Not later than the end of the calendar year in which the charter school seeks renewal of a charter, the law requires the governing board of a charter school seeking renewal to submit a renewal application to the charter authorizer under the renewal application guidance issued by the authorizer. The law requires the renewal application to include guidance from the authorizer and requires the guidance to include the performance criteria that will guide the authorizer's renewal decisions.

The law provides that the minimum standards for renewal and the standards to avoid closure imposed by authorizers on the charter school in the charter school agreement must include a requirement that the charter school not remain in the lowest category or designation of school improvement, including any alternative accountability category or designation, in the third year after initial placement in the lowest category or designation established under state law.
Current Indiana law provides that if an authorizer determines that an organizer is failing to comply with the conditions or procedures established in the charter, a charter school established by the organizer is failing to meet the educational goals set forth in the charter, an organizer is failing to comply with all applicable federal and state laws, an organizer fails to meet generally accepted fiscal management and government accounting principles, or one or more grounds for revocation exist as specified in the charter, the authorizer shall notify the governing board in writing and give the organizer a reasonable time to remedy the deficiency. If the organizer does not remedy the deficiency within the timeline established by the authorizer, the authorizer may order any corrective action that the authorizer considers necessary to correct the deficiency or revoke the school’s charter.
In making charter renewal decisions, the law requires an authorizer to make decisions based upon evidence of the school's performance over the term of the charter contract in accordance with the performance framework set forth in the charter contract, ensure the data used in making renewal decisions are available to the school and the public, and provide a public report summarizing the evidence basis for each decision.

Indiana law provides that a charter may be renewed for not more than seven years.

The law requires an authorizer to develop revocation and nonrenewal processes that provide the organizer with a timely notification of revocation or nonrenewal and the reasons for the possible revocation or nonrenewal, allow the organizer a reasonable amount of time in which to prepare a response, provide the organizer with an opportunity to submit documents and give testimony in support of the continuation of the charter school at a proceeding held for that purpose, allow the organizer access to representation by counsel, and after a reasonable period for deliberation, require that a final determination be made and conveyed in writing to the organizer.

The law requires all charter renewal, non-renewal, and revocation decisions be made in a public meeting, with authorizers stating reasons for non-renewals and revocations in writing.

Before any charter school closure decision, the law requires an authorizer to develop a charter school closure protocol to ensure timely notification to parents, orderly transition of each student’s education records in accordance with state law, and proper disposition of school funds, property, and assets.

Before an authorizer may issue a charter to an organizer that has had its charter terminated or has been informed that its charter will not be renewed by the organizer's current authorizer, the law requires the authorizer to request to have the proposal reviewed by the state board at a hearing and must receive approval by the state board.

Indiana law notes that if a proposed charter school intends to contract with an education service provider for substantial educational services, management services, or both educational services and management services, the applicant must provide: (1) Evidence of the education service provider's success in serving student populations similar to the targeted populations, including demonstrated academic achievement as well as successful management of nonacademic school functions, if applicable. (2) A term sheet setting forth the: (A) proposed duration of the service contract; (B) roles and responsibilities of the organizer, the school staff, and the education service provider; (C) performance evaluation measures and timelines; (D) compensation structure, including clear identification of all fees to be paid to the education service provider; (E) methods of contract oversight and enforcement; (F) investment disclosure; (G) that the school and the authorizer are entitled to any data directly related to the operation or management of the school, such as financial data, enrollment data, demographic data, performance data, and student data, in the possession of the education service provider, but may not include any proprietary, intellectual property, or similarly protected data of the education service provider; and (H) conditions for renewal and termination of the contract. (3) A disclosure statement to explain any existing or potential conflicts of interest between the organizer and the proposed education service provider or any affiliated business entities. (4) Assurance that the organizer will be structurally independent of the education service provider and shall set and approve school policies. Beginning July 1, 2017, at the time an organizer submits a proposal, the organizer shall submit to the authorizer and department a statement of economic interest for each board member of the proposed charter school.
The law states that individuals who work at a charter school are employees of the charter school or of an entity with which the charter school has contracted to provide services are not exempted from criminal history record checks and fingerprinting requirements.

Under Indiana law, a charter school may sue or be sued, acquire property, convey property and enter into contracts in its own name, including contracts for services. The law also includes provisions creating boards specifically to govern charter schools.

Indiana law requires all charter schools to be open to any student who resides in Indiana.
According to the law, a charter school is subject to all federal and state laws and constitutional provisions that prohibit discrimination on the basis of disability, race, color, gender, national origin, religion, and ancestry.

Indiana law provides that charters may have enrollment preferences for previously enrolled students at conversions, students enrolled at a charter school the previous year, students enrolled at a different charter school held by the same organizer, siblings of students enrolled at a charter school, preschool students who attend a Level 3 or Level 4 Paths to QUALITY program preschool to attend kindergarten at a charter school if the charter school and the preschool provider have entered into an agreement to share services or facilities, and each student who qualified for free or reduced price lunch under the national school lunch program if the preference is specifically provided for in the charter school’s charter and is approved by the authorizer. The law also allows charter schools to provide enrollment preference for children of a school’s founders, governing board members, and employees, not exceeding 10% of the school’s total student population. The law also permits charter schools to provide an enrollment preference for siblings of a student alumnus.
The law allows a student who attends a charter school co-located with another charter school to receive preference to admission to the charter school if the preference is specifically provided for in the charter school's charter and is approved by the charter school's authorizer.

Indiana law stipulates that if more applications are received than available slots, then each applicant will receive equal consideration. The law also provides that an organizer must determine which of the applicants will be admitted to the charter school or the program, class, grade level, or building by random drawing in a public meeting, with each timely applicant limited to one entry in the drawing. However, the organizer of a charter school located in a county with a consolidated city shall determine which of the applicants will be admitted to the charter school or the program, class, grade level, or building by using a publicly verifiable random selection process.

Indiana law provides that any state statute applicable to a governing body or school corporation, a rule or guideline adopted by the state board of education, a rule or guideline adopted by the professional standards board except for those rules that assist a teacher in gaining or renewing a standard or advanced license, and a local regulation or policy adopted by a school district unless specifically incorporated in the charter do not apply to a charter school, except for the following statutes, rules, and guidelines: required audits by the state board of accounts; unified accounting system; special education; criminal history; laws requiring regulation by state agencies; voiding of teacher contract when two contracts are signed; nondiscrimination for teacher marital status; teacher freedom of association; school counselor immunity; compulsory school attendance; limitations on employment of children; student due process and judicial review; firearms and deadly weapons; health and safety measures; reporting of student violations of law; patriotic commemorative observances; assessment programs, including remediation under the assessment programs; parental access to education records; and accountability for school performance and improvement.
In addition, the following statutes, rules, and guidelines apply to conversion charter schools only if the conversion charter school elects to collectively bargain: teacher contracts, cancellation of teacher contracts, contracts with school administrators, salary and related payments, and conditions of employment. However, for any collective bargaining agreement entered into after July 1, 2015, a governing body is not bound by its collective bargaining agreement for employees of a conversion charter school. Employees of a conversion charter school may organize and collectively bargain only as a unit separate from other school employees.
Indiana law provides that at least 90% of the individuals who teach full time in a charter school must either hold any license or permit to teach in a public school in Indiana under described in state law or rules adopted by the state board concerning the licensing of teachers or be in the process of obtaining a license to teach through the transition to teaching program. For those in the transition to teaching program, it provides that licenses must be obtained within three years of beginning to teach at a charter school.

In Indiana, collective bargaining is required for non-charter public school teachers and must address three topics: wages, benefits, and pension and retirement benefits. Numerous other topics are expressly prohibited, including hours, lesson preparation periods, terms and conditions of employment, length of the school year, class size, extracurricular duties, leave, management rights, transfers and reassignment, layoffs, dismissal, and evaluation.
Indiana law provides that charter schools are exempt from district collective bargaining agreements. Charter school teachers may choose to work independently or collectively bargain as a separate unit.

Prior to the Supreme Court’s Janus v. AFSCME decision, Indiana state law prohibited unions from charging agency fees to non-union members of any collective bargaining unit. As a result, the Supreme Court’s decision did not have any direct effect on unions in the state.

Indiana state statute also lays out a process for employees to designate an exclusive representative who must have the support of a majority of employees to be recognized by an employer. The employer must provide 30 days’ notice to employees that it intends to recognize the exclusive representative. During that 30 days, a competing organization, an individual employee, an employee petition, or an employer inquiry can prompt an investigation by the Indiana Education Employment Relations Board and a new election of an exclusive representative. A new election cannot be held within two years of an election.

Indiana law provides that an organizer may hold one or more charter contracts and that each charter school that is part of a charter contract must be separate and distinct from any other charter school.

Indiana law is silent about charter eligibility and access.

Indiana provides that charter schools are designated LEAs and provides that federal, state, and local special education funds flow to charter schools. It also permits charter schools to apply directly for any additional federal or state grants or categorical funding intended for students with high-cost, low-incidence disabilities and gives charter schools access to educational service centers.

Indiana law grants charters access to most state and federal funding. However, there are still glaring deficiencies in the funding provided to charters, including that charters do not receive local tax levies for transportation and facilities and do not have access to the local capital funds for insurance costs.
Legislation enacted in 2020 provides that a school corporation may distribute money that is received as part of a referendum tax levy to a charter school, excluding a virtual charter school, that is located in the attendance area of the school corporation. The legislation provides that the resolution adopted by a school corporation to place a referendum on the ballot must indicate whether proceeds collected from the tax levy will be used to provide a distribution to a charter school or charter schools, excluding a virtual charter school, as well as the amount that will be distributed.
In a national study of charter school funding (University of Arkansas, Charter School Funding: Inequity Expands, 2014), Indiana charter schools were receiving on average $8,045 per pupil in public funds, while traditional public schools would have received $12,897 for those students. As a result, the state's charter schools were receiving $4,852 per pupil - or 37.6% - less than what the traditional public schools would have received for those students. This figure includes all sources of funding, and analysis reveals continued inequities for operational, categorical, and capital funding (see component #19 for information on capital issues).

19) Equitable Access to Capital Funding and Facilities, including: Indiana law creates a $750 per-pupil facilities allotment for charter public schools that must be used primarily for facilities and transportation purposes, provided the schools meet performance expectations. It is funded at $1,000 per-pupil in 2021-22 and at $1,250 per-pupil in 2022-23.
Indiana law establishes a charter school facilities assistance program to make grants and loans to charter public schools for the purpose of constructing, purchasing, and renovating charter school facilities. The state is not currently funding this program.
Indiana law provides that a local school board must make available for lease or purchase to any charter school any of its buildings previously used for classroom instruction that is not used in whole or in part for classroom instruction at the time the charter school seeks to lease the building or it appears on the list of available school buildings compiled by the state department of education. The law provides that if a charter school wishes to use a school building on the SEA's list, the charter school must send a letter of intent to the department. The department must notify the school district of the charter school's intent, and the school district that owns the school building must lease the school building to the charter school for $1 per year for as long as the charter school uses the school building for classroom instruction or for a term at the charter school's discretion or sell the school building to the charter school for $1.
Indiana law establishes a charter school loan program that allows charter schools to borrow up to $5 million each at one percent interest for facilities and a wide range of educational needs. Qualification for the loan is based on the same performance criteria used to receive the facilities allotment. The state is not currently funding this program.
Indiana law grants charter schools located in Indianapolis the ability to obtain facilities financing from the local public improvement bond bank and all other charter schools the ability to obtain financing through the Indiana Bond Bank. Indiana law provides that charter schools have the moral obligation pledge of the City or State to debt issued through these authorities. 3 4 12

Indiana law provides charter schools the option to participate in relevant employee retirement systems in a similar manner to all other public schools.

Indiana law includes a small number of the model law’s provisions regarding full-time virtual charter schools.
The law provides that a new virtual charter school may only apply for authorization with any statewide authorizer and a virtual charter school that has a charter may renew a charter only with a statewide authorizer.

The law requires that 60% of the students who are enrolled in virtual charter schools for the first time each school year must have been included in the state’s ADM count for the previous school year.

The law requires each charter school to adopt a student engagement policy. It provides that a student who regularly fails to participate in courses may be withdrawn from enrollment under policies adopted by the virtual charter school. The policies adopted by the virtual charter school must ensure that:

* Adequate notice of the withdrawal is provided to the parent and the student.
* An opportunity is provided before the withdrawal of the student by the virtual charter school for the student or the parent to demonstrate that failure to participate in the course is due to an event that would be considered an excused absence under state law.

The law provides that a student who is withdrawn from enrollment for failure to participate in courses pursuant to the school’s student engagement policy may not reenroll in that same virtual charter school for the school year in which the student is withdrawn.

The law provides that an authorizer shall review and monitor whether a virtual charter school complies with these requirements.

The law requires each authorizer of a virtual charter school to establish requirements or guidelines for virtual charter schools authorized by the authorizer that include the following: requirements for a mandatory annual onboarding process and orientation; a requirement that a virtual charter school must provide to a parent of a student the student engagement and attendance requirements or policies of the virtual charter school; requirements relating to tracking and monitoring student participation and attendance; ongoing student engagement and counseling policy requirements; and employee policy requirements, including professional development requirements.

The law requires each virtual charter school to report annually to the state department of education concerning the following, on a schedule determined by the department:

* Classroom size.
* The ratio of teachers per classroom.
* The number student-teacher meetings conducted in person or by video conference.
* Any other information determined by the department.

The law requires the department to provide this information annually to the state board of education and the legislative council.

The law provides that a virtual charter school is to be funded at a level of 85% of the amount it would otherwise receive if it were a brick and mortar charter school (the previous level was 90%).