INDIANAPOLIS—The Indiana Senate Democratic Caucus released the following statement about the passage of Senate Bill (SB) 518, calling it a deeply flawed, fiscally reckless and fundamentally unjust bill that undermines public education and strips local communities of their right to control their own schools:

“This is not a debate about public schools versus charter schools. This is about fiscal accountability, responsible governance and protecting Hoosier from yet another financial burden at a time when they are demanding relief.

“SB 518 was sold as a way to “fairly” fund education, but the reality is far different. This bill does not increase funding for schools. It does not improve outcomes for students. It does not invest in the future of Indiana’s education system. Instead, it shifts the financial burden of charter school funding away from the state and onto local homeowners—while 90% of Hoosier students continue to attend traditional public schools.

A Shift in Burden, Not a Solution 

“For years, the state has funded charter schools through its own budget—through the Charter and Innovation Network School Grant. But instead of continuing to take responsibility for the funding it promised, the state is now cutting that grant by nearly 40% and forcing local property taxpayers to make up the difference.

“Let’s be clear:

  • This bill does not provide new money for education. It does not improve funding for students. It simply shifts the cost from the state to homeowners, renters and local taxpayers.
  • This bill overrides the will of local voters. If communities choose to pass referenda to invest in their local schools, they should have the right to directly fund the schools they voted for. This bill strips them of that choice.
  • This bill creates financial instability for schools across the state. We have seen the rules around school funding change time and time again. How can schools plan for the future when the state keeps rewriting the rules?
  • This bill burdens local communities, while the state claims to be reducing taxpayer costs. This is nothing more than a shell game, where the state pretends to cut costs while actually passing them off to local governments and homeowners.

A False Argument That Ignores the Real Issue 

“Supporters of this bill argue that it’s about fairness—but that is simply not true.

  • If fairness was the goal, why is the state cutting charter school grants and forcing local taxpayers to fill the gap?
  • If fairness was the goal, why are we taking money from locally approved public school referenda instead of having a state-funded solution?
  • If fairness was the goal, why are we shifting financial responsibility away from the state and to local taxpayers at the exact same time the governor is calling for immediate property tax relief?

“This bill is not about funding schools—it is about saving the state money under the guise of supporting education. And it is homeowners who will pay the price.

A Reckless, Short-Sighted Approach 

“We cannot continue to force local taxpayers to bear the cost of the state’s failures. Indiana’s schools—all of them, public and charter alike—deserve stable, responsible and well-planned funding. Instead, this bill creates financial uncertainty and disrupts the funding system once again.

“The Indiana Senate Democratic Caucus fought for responsible alternatives. We filed 19 amendments to:

  • Ensure transparency and oversight of how taxpayer dollars are spent.
  • Protect local voters’ decisions about how their referendums are used.
  • Create financial stability for all schools, rather than continuing to move money around unpredictably.

“Every single one of these amendments was rejected.

The Fight Is Not Over 

“This bill now moves to the House, where legislators must decide whether they stand with Indiana taxpayers or with a system that forces local communities to pick up the state’s tab.

  • To Hoosiers struggling with property taxes: This will only make it worse.
  • To local communities who passed referenda to invest in their schools: Your votes are being ignored.
  • To school leaders trying to plan for the future: Another funding shift is coming—whether your community can afford it or not.

“This is not a sustainable way to fund education. It is not a responsible way to manage taxpayer dollars. And it is not a bill that deserves to become law.

“Hoosiers deserve better.”