House Seeks to Cushion Blow of School Funding Cuts

February 2, 2010

The House will vote Tuesday or Wednesday on a bill aimed at cushioning the blow of a 300-million-dollar school funding cut.

Governor Daniels ordered the cuts in December, saying the state has cut everywhere else it can to offset a $1.8 billion drop in expected tax collection over the life of the two-year state budget.

Education Chairman Greg Porter’s (D-Indianapolis) bill would allow schools to use up to five-percent of the tax dollars they collect for capital projects to pay utility bills and insurance premiums.

The Senate has been considering a bill to let schools tap other funds for the classroom, but only if teachers agree to forgo raises required by local contracts or state law.

Porter’s bill would also suspend implementation of the ISTEP exam for social studies, and funnel $1.2 million earmarked for the PSAT and for SAT and ACT test prep back to the classroom. And the proposal eliminates three-quarters of the funding for online "virtual charter schools."

The bill would save an additional $5 million by delaying the start of a new tax credit for donations to organizations which award scholarships for students to attend charter schools or private schools. On a party-line vote, the Ho use rejected a Republican attempt to restore those funds.

Minority Leader Brian Bosma argues the money is a tiny percentage of the school budget, and is targeted toward helping families most in need.

Porter has dropped a provision that would have required charter-school organizers to get the signatures of a majority of parents in the school district, or win a referendum on establishing the charter school.