Indiana

In the 1990s, concerns about low student achievement and inefficient spending in Indiana’s traditional public schools led reformers to consider new solutions. As charter schools gained traction in other states, Indiana leaders took notice and began laying the groundwork for legislative action.

State Senator Teresa Lubbers (R), who represented communities north of Indianapolis and held a leadership position on the Senate Education and Career Development Committee, introduced Indiana’s first charter schools legislation. That bill was defeated as were several other similar bills in subsequent years.

Interview of Teresa Lubbers

During the 1999 Indianapolis mayoral campaign, Democratic candidate Bart Peterson pledged to bring charter schools to the city. Peterson defeated his Republican opponent 52.6% - 42.4% to become the city’s first Democrat to be elected mayor since 1963.

In a legislative trade brokered by Lubbers to restore collective bargaining in Indianapolis Public Schools, Indiana became the thirty-seventh state to adopt a charter schools law. Part of the trade allowed the Mayor of Indianapolis to authorize up to five schools per year, with issued charters rolling over to subsequent years. This bipartisan support of the Democratic mayor of the state’s largest city and the Republican senate education leader is credited for the law’s enactment. Other entities empowered to authorize schools were local school boards and public universities that offer four-year degrees. The bill was signed into law by Gov. Frank O’Bannon (D).

The Center for Education Reform gave this law an “A” rating as the 6^th strongest in the nation.

Ball State University established an Office of Charter Schools within its Teachers College to act as a statewide authorizer. The university also launched the Office of Charter School Research to monitor quality and performance.

In Indianapolis, Peterson established a dedicated office to authorize charter schools. It was led by David Harris.

That year, 11 charter schools opened:

• Six schools received charters from Ball State University: Campagna Academy (Schereville), Community Montessori, Inc. (Floyds Knobs), Irvington Community School (Indianapolis), New Community School (West Lafayette), Timothy L. Johnson Academy (Fort Wayne) and Veritas Academy (South Bend).
• Three elementary schools in Marion County were chartered by the Mayor of Indianapolis: Flanner House Elementary School, 21st Century Community School and Christel House Academy.
• Two “conversion” schools authorized by school boards: The Signature Learning Center was authorized by the Evansville-Vanderburgh School Corporation. Options Charter School was authorized by Carmel-Clay School Corporation.

The Indiana Public Charter Schools Association was also founded as a membership organization to advocate for the emerging charter community.

The “cap” on charter schools was modified to limit each public university to authorize up to five schools per year, and to prohibit unissued charters from the Mayor’s office from rolling over to subsequent years.

Ball State University published the state’s first comprehensive annual report on charter school growth and performance, including detailed profiles of every operating charter school in Indiana.

The 2003 limitations on charter schools sunsetted, allowing for increased growth in Indianapolis and statewide.

In his first State of the State address, Governor Mitch Daniels (R) called for accelerated charter school expansion. His leadership led to the creation of a facilities fund to help charters access equitable building resources.

Peterson’s charter schools initiative was awarded Harvard University’s Innovations in American Government Award “for its commitment to accountability and its outstanding success.”

Peterson and Harris co-found The Mind Trust to accelerate education innovation and expand access to high-quality public schools in Indianapolis Its focus was  on incubating transformative school models, recruiting top talent, and supporting systemic reform in the city. Over time, The Mind Trust became a national model for education innovation and its impact.

In a political upset, Peterson lost his bid for a third term to Republican challenger Greg Ballard. Ballard pledged to maintain strong support for charter schools and preserve the authorizing responsibilities of the Mayor’s Office. Ballard retained Peterson’s charter schools staff, and during his two terms in office, increased the number of charters from 16 to 39, while closing seven. Ballard’s Democratic successor, Joe Hogsett, continued this bipartisan support when he assumed office in 2016.

Momentum for charter schools continued to grow across Indiana. Governor Daniels welcomed charter leaders and stakeholders to the Statehouse to recognize their progress, with fifty-four charter schools serving more than nineteen thousand students. At the same time, charter schools began to play a more prominent role in shaping public discourse around education innovation. News coverage, such as a front-page feature in The Republic newspaper about the International School of Columbus, reflected how charter schools were becoming a primary driver of public education discussion and reform.

In 2008, Hoosier Academy-Indianapolis and Muncie were authorized by Ball State University as hybrid schools. In 2009. Hoosier Indianapolis Virtual Charter School was authorized by the Indiana Department of Education as part of a virtual schools pilot program. A year later in 2010, Indiana Connections Academy was also authorized under this pilot program.  

Charter schools in Gary and East Chicago demonstrated growing success. 21st Century Charter School in Gary emerged as a national model for early college access and strong academic outcomes. GEO Academies began expanding into East Chicago, helping meet student needs in historically underserved areas.

Speaker of the House Brian Bosma (R) advanced legislation to facilitate growth of charter schools by granting private colleges and universities the authority to act as authorizers and, consistent with policy recommendations from the National Association of Charter School Authorizers, establishing the independent, bipartisan Indiana Charter School Board.

The legislation also provided better funding access, opened unused district buildings to charter use, and strengthened oversight and accountability systems.  The bill was signed into law by Daniels.

The Mind Trust released a plan to transform Indianapolis Public Schools by expanding autonomy and promoting innovation, including a call for more high-quality charter schools.

The Indiana Public Charter Schools Association ceases operations.

Statewide advocacy leadership was subsequently assumed by Hoosiers for Quality Education, a nonprofit organization founded and led by former businessman Fred Klipsch, and its affiliates, the Institute for Quality Education and the Indiana Charter School Network.

Both the Indiana legislature and Ball State University enacted new policies to advance quality within the state’s chartering community.

Legislation introduced by House Education Chair Bob Behning (R) required authorizers to adopt standards of quality for charter school authorizing, education service providers to provide evidence of success in serving a school’s targeted population and disclose potential conflicts of interest to charter school organizers, and schools whose charters have been terminated or are not being renewed to obtain permission from the State Board of Education before receiving a charter from another authorizers.

Also that year, under a new performance accountability framework that first affected 20 schools in their portfolio, Ball State University did not renew the charters of seven of the 43 schools it authorized. An additional two schools also chose to withdraw their request for renewal. Prior to this Ball State terminated one charter contract: Urban Brightest in Fort Wayne, in 2004.

House Education Chair Bob Behning (R) advanced legislation to create the “Innovation Network Schools” within Indianapolis Public Schools. This is a new model allowing autonomous schools to operate within the district structure. These schools gained charter-like flexibility while remaining accountable for student outcomes. By 2021, twenty Innovation Network Schools were operating in Indianapolis. This bill was signed into law by Gov. Mike Pence (R).

Indiana ranked first on the Center for Education Reform’s Parent Power Index, in part due to the strength of the state’s charter schools law.

The National Alliance for Public Charter Schools ranked Indiana’s charter law as the strongest in the country. The state held this position for eight consecutive years.

Under the leadership of former Gov. Daniels, Purdue University opened Purdue Polytechnic High School in Indianapolis, offering a new STEM-focused model for high school students. Rather than authorizing the school, Purdue operated it, which created new type of university-charter partnerships. This school grew into a network of schools that operate in West Lafayette, South Bend and eight other locations throughout the state.

In the 2020-21 school year, charter enrollment exceeded enrollment in Indianapolis Public Schools-run schools, 22,505 to 19,601, for the first time.

In 2021, Indiana lawmakers approved nearly $2 billion in new K–12 funding over two years, representing the largest incremental increase in public education funding in state history. Within this broader investment, charter schools made meaningful progress on funding equity. The state increased charter and innovation network grants from $750 per pupil to $1,000 in 2021, $1,250 in 2022, and $1,400 in 2023 and beyond. This narrowed the gap between charter and district schools, providing greater financial stability and capacity for charters to serve students equitably.

A study by Stanford’s Center for Research on Educational Outcomes (“CREDO”) confirmed that students in Indianapolis charter schools were achieving significant academic progress, particularly in reading and math.

A study from the Public Policy Institute highlighted charter schools’ role in closing achievement gaps for low-income students, with Indianapolis recognized as one of the most effective charter sectors in the nation.

Indiana Charter Innovation Center is established as a statewide membership organization to promote collaboration, knowledge-sharing, and advocacy in the charter community to fill the gap created by the Indiana Public Charter School Association’s 2013 closure.

In what observers called the most successful legislative session for charter schools since Indiana’s 2001 law, charters secured access to local funding streams for the first time under legislation sponsored by Senator Linda Rogers (R). This phased-in reform will close inequities that in Indianapolis had reached nearly $8,000 per student. Lawmakers also created the Local Education Alliance, a panel of civic leaders advising on both charter and district school development, and adopted a statewide policy deeming charter schools an approved use in every zoning category, eliminating a longstanding barrier to facilities growth.