LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6611 NOTE PREPARED: Dec 26, 2023
BILL NUMBER: SB 173 BILL AMENDED:
SUBJECT: Charter Schools.
FIRST AUTHOR: Sen. Hunley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill changes the chartering authority for a consolidated city. Beginning July
1, 2024, the bill provides that only the Charter Board or the Indianapolis Charter School Board may grant
chartering authority in a consolidated city. It provides that at least 45 days before a public hearing, an
organizer must conduct a meeting with the school corporation where a charter school will be located to
discuss certain information. This bill also provides that not more than 30 days after meeting with an
organizer, a school corporation must make a recommendation to the authorizer concerning the proposed
charter school. It provides that a school corporation must be allowed to make public comments regarding a
recommendation made to an authorizer at a public meeting.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Charter School Authorizers: Beginning in FY 2025, provisions in the
bill prohibit state educational institutions (SEIs), school corporations, and nonprofit colleges or universities
from authorizing new charters in a consolidated city. This may shift the administrative costs associated with
authorizing a charter school if this encourages more charter school organizers to seek authorization from the
Indiana Charter School Board (ICSB) or the Indianapolis Charter School Board. To the extent this occurs,
these provisions may reduce administrative costs for SEIs while increasing the administrative costs for
ICSB.[SEIs receive state funding through General Fund appropriations.]
Additional Information -
Charter School Authorizers: Entities that authorize charter schools have administrative costs associated with
authorizing and monitoring charter schools. To offset these costs, statute allows charter school authorizers
SB 173 1 to collect an administrative fee from charter school organizers capped at 3% of the tuition support received
by a charter school. Current statute allows the following entities to authorize charter schools:
(1) A governing body of a school corporation.
(2) A state educational institution (SEI), who offers a four year baccalaureate degree;
(3) The Indianapolis Charter School Board;
(4) The ICSB; and
(5) A governing body of certain nonprofit colleges or universities.
There was an average of three charter schools opened per year over the past five years in Indianapolis.
Explanation of State Revenues: Charter School Authorizers: Administrative fees collected from charter
schools may shift between charter school authorizers under this bill. If the bill’s provisions prevent an
interested SEI from authorizing a charter school in a consolidated city, SEI revenue would decrease. If ICSB
authorizes more charter schools under the bill, ICSB revenue would increase. ICSB charged a 0.75%
administrative fee to authorized charters during the 2021-2022 school year. [See Explanation of State
Expenditures.]
Explanation of Local Expenditures: Charter School Authorizers: Administrative costs to authorize charter
schools may shift between charter school authorizers under this bill. If the bill prevents an otherwise
interested school corporation from authorizing a charter school in a consolidated city, administrative costs
for the school corporation would decrease. If the bill increases the number of charter school organizers
interested in being authorized by the Indianapolis Charter School Board, administrative costs for the
Indianapolis Charter School Board may increase.
Public Meeting: Beginning in FY 2025, the bill provides that before a charter may be authorized by a state
educational institution, a nonprofit college, or a nonprofit university, the charter organizer must first meet
with the school corporation where the charter school will be located to discuss certain topics. The school
corporation is also required to provide a recommendation regarding the suitability of the proposed charter
at a public meeting. These requirements are within a public school’s routine administrative functions and
should be able to be implemented with no additional appropriations, assuming near customary agency
staffing and resource levels.
Explanation of Local Revenues: Charter School Authorizers: Administrative fees collected from charter
schools may shift between charter school authorizers under this bill. If the bill’s provisions prevent an
interested school corporation from authorizing a charter school in a consolidated city, school corporation
revenue would decrease. If the Indianapolis Charter School Board authorizes more charter schools under the
bill, Indianapolis Charter School Board’s revenue would increase. The Indianapolis Charter School Board
charged a 1% administrative fee to authorized charters during the 2021-2022 school year.
State Agencies Affected: State educational institutions; Indiana Charter School Board.
Local Agencies Affected: Public schools; Indianapolis Charter School Board.
Information Sources: Indiana Charter School Board, Annual Report for the 2021-2022 School Year.
https://www.in.gov/icsb/files/ICSB-Annual-Report_2021.22.pdf;
Indianapolis Mayor’s Office of Education Innovation, Annual Report for the 2021-2022 School Year.
https://media.graphassets.com/hCfl8vKSReiErBNb41mT?_gl=1*yw1d8n*_ga*ODAyMTk0OTUyLjE2N
SB 173 2 zQ1MDI5MTg.*_ga_G6FYGSYGZ4*MTY3NDU5Mjk2MC4zLjEuMTY3NDU5MzE5Ny42MC4wLjA;
LSA Education Database.
Fiscal Analyst: Kelan Fong, 317-232-9592.
SB 173 3