School districts, coalitions punch back at bill that would close their doors

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A Republican-backed bill could dissolve five Indiana school districts, including Indianapolis Public Schools and Gary Community Schools, sparking backlash from advocates and district leaders who argue the legislation unfairly targets high poverty and urban districts that primarily educate children of color.

House Bill 1136, authored by Rep. Jake Teshka (R-North Liberty), proposes closing districts where more than 50% of students who live in the boundaries attend private, charter, or other district schools.

The bill would disband the district’s elected school boards and transition these district-run schools into charter schools.

But some say the bill may be intended to start discussions about giving charter schools a share of local property tax dollars, which they do not receive now. 

House Speaker Todd Huston (R-Fishers) agrees charter schools should get a cut of local property tax dollars to support their operations, especially in districts where more students choose them over traditional public schools. There could be compromise with this issue at the center of the bill, he said. 

Huston said his biggest issue is that school districts share money with charter schools. If lawmakers can do things without legislative action, Huston said he would “love to do that.” 

“If you're student-centered, you’d want to make sure that the public charter schools that are in your district, in which the majority of the kids in the district go to these charter schools, would receive some local property tax money to support their operations and their transportation.”
 

Charter schools are public schools overseen by a non-elected board. The schools get public funding from the state that pays for most of the cost of educating students. But they don’t typically receive local property tax revenue.

Democratic lawmakers, some families, school districts and public school advocates are upset by the bill’s plan to reorganize their chosen schools while some of the impacted school districts are highlighting flaws in the bill and mobilizing to see its end. 

A coalition of educator unions, NAACP chapters, and other prominent, primarily Black-led groups sent a letter Monday to the General Assembly joining those voices. In the letter, the coalition says HB 1136 is “a misguided proposal that will destabilize schools, silence communities, and jeopardize the future of public education in Indiana”.

Teshka told WFYI that he “spent a lot of time listening” during a meeting Monday with the coalition. 

“I’m just heartened by the conversation that we had yesterday,” Teshka said. “I've got some more conversations scheduled, and just really eager to have those and to listen to the stakeholders and find a way forward.”

Targeted rural school district sounds off

One rural northwest Indiana district says the one-size-fits-all legislation lumped in their schools without consideration of their history, academic success or geographic circumstances. 

Tim Guse, Tri-Township school board president, said the district has worked hard, and received accolades and achievements. The 2024 graduation rate for the high school is 100%.

“ … and then to be told that we're a failing school, we're going to close you down without even having a conversation with us to substantiate any of the details is just a little overwhelming,” Guse said. 

Tri-Township Schools aren’t failing, despite the narrative, Guse said. State assessment data shows the district is in decent standing academically with about 280 students across an elementary, middle and high school.

Schools in Wanatah, where the district is located, were only offering K-8 until they consolidated with neighboring districts in 2012, Guse said. Those complexities of their rural schools, like a high transfer rate between schools, is not reflected in the bill.

“If you go back to the last 20 years, our numbers don't look any differently now, as far as transfers in and out,” Guse said.

Guse said the enrollment count also did not consider an additional 84 incoming students after Oct. 1 — the date a districts’ average daily enrollment is determined. Guse believes families would not be interested in a charter school in their area, he said their district being named in the bill has caused “anger” in the community.

Teshka spoke with Tri-Township leaders, and he said there could be flexible ways to drop the 50% enrollment threshold and it’s part of the conversation. He said he knows Tri-Township is doing well as a district. 

District leaders and community members are pursuing conversations with state lawmakers to fight the legislation, including State Sen. Mike Bohacek (R-Michiana Shores) and Rep. Jim Pressel (R-Rolling Prairie). 

‘It’s not good for the whole state’

Gary – another northwest community – is responding to the bill with concern for what comes next after the district recently took back its own reins. 

Democratic Rep. Vernon Smith, who represents parts of Gary, described the bill as “toxic.” 

“It’s not good for the whole state but it’s even more so unfair for Gary because Gary was under seven years of state dominance and we lost our students because of the uncertainty of what was going on with the state’s control,” Smith said. 

The state took control of the district in 2017 because it was insolvent, with a $22 million operating deficit and more than $100 million in long-term debt. Gary regained local control of the schools last July. 

As of Feb. 2023, the emergency manager hired by the state to operate Gary Schools was paid more than $20 million in fees.

“Since local control was re-instated, we have been laser-focused on increasing enrollment and maintaining financial solvency, while enhancing curriculum and improving the overall educational experience for children,” said Yvonne Stokes, Gary Community Schools superintendent.

Stokes, like Guse, took issue with the enrollment count tied to HB 1136. She said it only shows two months of attendance from this school year. 

“This count does reflect an increase of more than 200 students, which is an upward trend that we are working to continue,” Stokes said. 

In a letter sent to Gary district families, the district urged them to contact their state legislators to oppose HB 1136 and advocate on the district’s behalf. Similarly, IPS and Tri-Township are mobilizing their communities. 

The coalition letter sent this week detailed that HB 1136 unfairly targets high poverty districts and disproportionately affects Black students and other students of color. The letter said the bill ignores systemic inequities and underfunding. 

“HB 1136 further marginalizes districts that have faced ongoing social and economic challenges, further deepening disparities and undermining efforts to build an educational system,” the letter reads.

Teshka said if this bill is targeting those areas and groups then it would be somewhat incidental.

“We're looking at school districts where folks are moving away, and presumably, because there are issues with those, those districts,” Teshka said.

House Bill 1136 could veer to sharing funds with charters

Rep. Gregory Porter (D-Indianapolis) said last week that his party is already talking about the bill on the House floor. 

“We are galvanized as we've ever been galvanized before,” Porter said. “Not only us as House Democrats, but the communities of Indianapolis and Gary.”

Porter questioned whether Republicans are using HB 1136 as “a tool to get something else” in education talks.

A bipartisan group of Indianapolis politicians and education advocates, including two former mayors, urged IPS to share resources with charter schools in a letter before session’s start. 

That letter and the attention around HB 1136 quickly turned conversation to sharing property dollars with charter schools. Lawmakers in 2023 passed a law requiring four school districts  – Lake, Marion, St. Joseph and Vanderburgh – to share revenue from property-tax referendums approved by voters with charter schools.

Teshka told WFYI that “fairness” around property tax revenue sharing is a part of the conversation, but not all of it. 

“I would not say that that is kind of the overall crux of this bill,” he said. Teshka’s bill is about student outcomes, he said. 

“In those communities where, where, there may be some additional challenges,” Teshka said. “How do we help those students to succeed and thrive.” 

HB 1136 was read into the record but has not yet been heard in the House Education committee, which starts Wednesday. Teshka said he spoke with committee chairman Rep. Bob Behning (R-Indianapolis) and he’s not sure yet if it will go ahead but he’ll keep pushing forward. 

Rachel Fradette is the WFYI Statehouse education reporter. Contact Rachel at rfradette@wfyi.org.