Indiana House Republicans Propose Major School Voucher Expansion In Next State Budget

By Casey Smith, Indiana Capital Chronicle

February 17, 2023

Indiana taxpayers would more than double their spending on the state’s “school choice” voucher program under the latest budget proposal released Friday by House Republicans.

The GOP plan also limits its commitment — to $225 million — for public-private partnerships meant to increase public health services across the state. That’s only two-thirds of Gov. Eric Holcomb’s ask for the statewide program, and less than half what the Governor’s Public Health Commission originally suggested.

Expanded eligibility for the Choice Scholarship program — which allows families to receive vouchers to attend private schools — would raise the income ceiling to 400% of the amount required for a student to qualify for the federal free or reduced price lunch program, equal to about $220,000.

Currently, vouchers are limited to families that make less than 300% of the federal poverty level, meaning a family of four can make up to $154,000 annually.

After the expansion, the program would cost the state an estimated $500 million in fiscal year 2024, and another $600 million in the following fiscal year. The current state budget appropriates $240 million annually for the Choice Scholarships.

The new voucher dollars accounts for roughly a third of the $2 billion in new, additional state funds that House Republicans want to earmark for K-12 education over the biennium.

Rep. Jeff Thompson, R-Lizton, who chairs the House Ways and Means Committee, said the decision comes as a way to increase “options” for Hoosier parents.

“We want those parents to have the best choice they can have with regard to where their children should go — and all parents should have that,” Thompson said Friday. “In this case, we’re just very optimistic about what it’s going to do for families and finding the best spot for their children.”

Additional state spending on K-12 education would increase grants for low-income and English-learner students, as well as those with special needs.

The House’s proposal is the first draft of a two-year state budget that must still be approved by the Senate and the governor. A final version of the budget is expected by the end of April.

Other leading line items in the House budget include:

• $1.25 billion in fiscal year 2023 to finish four ongoing capital projects across the state
• $500 million for Regional Economic Acceleration & Development Initiative (READI) grants in fiscal year 2023
• $500 million to create a “deal closing fund” for the Indiana Economic Development Corporation (IEDC)
• $75 million over the biennium for a residential housing infrastructure assistance revolving fund
• $10 million for regional mental health facility grants to support mental health services for incarcerated individuals
• University operating fund increases of 4% in fiscal year 2024 and 2% in fiscal year 2025
• An increase to boost Indiana State Trooper starting salaries to $70,000 per year
• Funding increases for Medicaid assistance and Department of Child Services providers

This story will be updated.

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