Indiana

More information

The Indiana Department of Education (IDOE) was one of two jurisdictions selected as part of the second cohort of grantees to receive a grant from the U.S. Department of Education (ED) State Charter School Facilities Incentive Grants Program, totaling $15 million for FY2009 through FY2013. See the U.S. Department of Education section of Federal Initiatives for further details on the federal program.

In Indiana, federal grant money from the State Incentive Grants Program is used to supplement the Charter School Facilities Fund. Prior to 2013 these funds were utilized for start-up grants and per-pupil facilities aid to charter schools.

The Indiana General Assembly did not appropriate the required $5 million (80%) match that would have enabled ED to fund a fifth and final year of awards. Indiana did receive approval for a no-cost extension that ran until September 30, 2014, to ensure that all funds approved from years one through four of the grant could be expended.

In 2012 IFF was selected by IDOE to operate the Charter School Facilities Assistance Program, a revolving loan program. Through this program, utilizing a $3 million grant from IDOE, IFF was required to leverage an additional $9 million. Between 2012 and 2016 IFF made thirteen loans to eleven charter schools in Indiana, for a total of $9.8 million, leveraging $40 million in total development costs to date.

All funds from this loan fund have been fully committed.

Last Updated: July 2017

Website

In 2014 the Indiana General Assembly passed legislation enabling Indianapolis Public Schools (IPS) to create Innovation Network Schools. Schools within this network operate with academic and operational autonomy but are held accountable by the school district for agreed upon student outcomes. This additional autonomy is meant to give schools the flexibility to make decisions based on their student bodies’ needs. In IPS there are four pathways a school may take to become an innovation school: 1) launch as a new innovation school, 2) launch as an innovation charter school, 3) restart an existing chronically underperforming school as an innovation school, or 4) convert an existing high-performing school as an innovation school. In 2015 legislation allowed for Innovation Network Schools to be established throughout the state.

Last Updated: July 2017

Website

In 2015 the Indiana General Assembly passed legislation creating the Charter and Innovation Network School Grant Program and appropriated $10 million per fiscal year for two years. In 2017 legislation extended this program for an additional two years and appropriated $15 million per fiscal year for two years, but no further augmentation is allowed. The program established an annual grant that is administered by the State Board of Education (SBOE) to provide funding to charter schools for capital projects, technology, and transportation costs. The grant amount is equal to $500 per pupil counted in the current average daily membership (ADM) of the school. Annual grants are automatically made to: 1) charter schools in their first two years of operation; 2) charter schools that were placed in the A, B, or C category or designation of performance, as established under IC 20-31-8-3, for the most recently completed school year; 3) charter schools that were placed in the D or F category or designation for the most recently completed school year, if the charter school is placed in the same or a better category or designation than the nearest non-charter public school that is configured to teach the exact same grades of students as the charter school teaches; 4) charter schools that do not receive a category or designation of performance established under IC 20-31-8-3 for the most recently completed school year; 5) charter schools that have a majority of students with developmental, intellectual, or behavioral challenges (schools must submit a signed letter to the State Board explaining how it qualifies for a grant under this category); and 6) Innovation Network Schools located in a school city, as defined in IC 20-25-2-12, that does not receive a pro rata share of local property tax revenue. 

Schools that are ineligible include schools that have been granted a charter but will not be open to serve students in the fall of the year the grant is made, virtual charter schools, and adult high schools. Also ineligible are charter schools that do not automatically qualify and for two consecutive years have been placed in a worse category or designation of performance than the two nearest non-charter public schools configured to teach the same grades of students. Charter schools that do automatically qualify but are not deemed ineligible may submit an application to SBOE to be considered for funding. 

Last Updated: July 2017

Website

In 2015 the Indiana General Assembly created the Charter and Innovation Network School Advance Program and appropriated $50 million for this program. The loan program is administered by the State Board of Education (SBOE) to make advances to charter schools, excluding virtual charter schools and adult high schools, equal to not more than $50 million total over two years. Advances may be made at 1% interest with a 10-year maximum term and no more than a $5 million total advance outstanding to any one school. The funds must be used for educational purposes, including to construct or purchase a school facility. If used to purchase a facility, an adequate security interest as determined by the Indiana Department of Administration (IDOA) is required.

The program allows automatic qualification for 1) charter schools in their first two years of operation; 2) charter schools that were placed in the A, B, or C category or designation of performance, established under IC 20-31-8-3, for the most recently completed school year; 3) charter school that were placed in the D or F category or designation for the most recently completed school year, if the charter school is placed in the same or a better category or designation than the nearest non-charter public school that is configured to teach the exact same grades of students as the charter school teaches; 4) charter schools that do not receive a category or designation of performance established under IC 20-31-8-3 for the most recently completed school year; 5) charter schools that have a majority of students with developmental, intellectual, or behavioral challenges (schools must submit a signed letter to the State Board explaining how it qualifies for a grant under this category); and 6) Innovation Network Schools located in a school city, as defined in IC 20-25-2-12, that does not receive a pro rata share of local property tax revenue. 

The Indiana General Assembly did not extend funding for this program in 2017.

Last Updated: July 2017

Website

In 2011 (amended in 2013) the Indiana legislature passed a law requiring IDOE to post to its website a list of closed, unused, or unoccupied school buildings that were previously used for classroom instruction. A charter school must submit a Charter School Intent to Claim form to IDOE if it

is interested in leasing or purchasing one of the facilities on the list. The school corporation that owns the facility must then lease it to the charter school for $1 per year or sell it to the charter school for $1. The charter school must begin using the building for classroom instruction within two years of acquisition. During the lease term, the charter school is responsible for costs associated with utilities, insurance, maintenance, repairs, and remodeling. Two charter schools have purchased buildings from Indianapolis Public Schools since this statute passed in 2011.

Last Updated: July 2017

Website

In 2005 the Indiana Finance Authority (IFA) was formed as a consolidation effort between six debt-issuing entities. In 2007 the Indiana Health and Educational Facilities Finance Authority also was consolidated into the IFA. The mission of the IFA is to oversee state-related debt issuance and provide efficient and effective financing solutions to facilitate state, local government, and business investment in Indiana. IFA is authorized to issue revenue bonds payable from lease rentals under lease agreements with various state agencies and to finance or refinance the cost of acquiring, building, and equipping structures for state use.  

As nonprofit entities, charter schools may apply for tax-exempt and taxable bond financing for their facilities needs through the IFA pursuant to the provisions of the Indiana Finance Authority Act (Indiana Code 5-1.2-1 and 5-1.2-4), as supplemented and amended. Since 2010 the IFA has closed 23 bond offerings totaling $259.8 million for the benefit of charter schools across the state. 

Last Updated: September 2019

In 2002 the Indiana legislature authorized mayor-sponsored charter schools in Indianapolis to obtain financing through the Indianapolis Local Public Improvement Bond Bank (Bond Bank), and all other charter schools in the state to obtain financing through the Indiana Bond Bank. In addition to having access to these public authorities as conduit issuers, charter schools could benefit from the moral obligation (MO) pledge of the city or state, respectively, which backed certain debt issued through these authorities. This enhancement, when provided, gave additional security to investors purchasing and holding these bonds. The Bond Bank received $2 million in U.S. Department of Education credit enhancement grant funds, which it originally used in conjunction with the MO pledge to support the Indianapolis Charter Schools Facilities Fund; however, this fund is no longer operating.

In September 2010 the Charter Schools Development Corporation (CSDC), with the support of the Bond Bank and the Indianapolis mayor’s office, became the beneficiary and “transferee” of the Bond Bank’s original $2 million credit enhancement grant. A new program known as the Indianapolis Building Block Fund (IBBF) was subsequently launched to provide facilities financing to start-up and early-stage charter schools servinga student population with families earning a low-income.

Last Updated: September 2017

Disclosure: Information on this page has been provided by the organization. Any questions related to figures or programs listed should be directed to the contact shown above. Keep in mind that each school’s situation will differ slightly and you’ll need to speak to the contact listed for information specific to your school.