The bill would allow a family of four with yearly income up to about $40,000 to redirect 90 percent of per-student state aid from their local school districts to a private school. The maximum amount of the voucher is $4,500 in elementary school grades. Families making between $40,000 and $61,000 annually could use 50 percent of the state aid amount.

If signed into law, the bill will create the nation's second statewide voucher program.

HB 1003 would limit the number of vouchers available to 7,500 the first year, 15,000 the second year, and no cap after that. If the second year cap is met, Indiana would match Ohio for the largest statewide voucher program in the U.S. Milwaukee and New Orleans also have voucher programs that are limited to the city.

State Superintendent of Public Instruction Dr. Tony Bennett applauded the senate vote. “A great education should not be an option available only to a privileged few but rather a fundamental right for all Americans,” he said. “In Indiana, we are removing barriers to success and opportunity for students who have been denied equitable access for far too long.”

State Democrats and others, however, contend the voucher program will hurt public schools. Estimates by the nonpartisan Legislative Services Agency indicate the proposal will likely redirect $92M from public schools over the next two years.

Evansville Senator Vaneta Becker says the vouchers bill would harm traditional education. “It will go a long way,” she says, “in destroying public schools in the state of Indiana.”

Becker added that the income eligibility level is too high, and if the vouchers were actually going to families who needed them, she might be able to support the legislation.

“Indiana’s ‘Putting Students First’ education reform agenda ensures parents have an array of excellent public and non-public options for their children,” Bennett said. “There is no silver bullet for the challenges our education system faces. We all have to work together to prepare Hoosier students for the challenges they face in a globally competitive workforce.”

The state department of education asserts that HB 1003 aligns with the national accountability movement by requiring participating schools to be approved by the state, administer the ISTEP and ECA exams, and receive A-F letter grades just like traditional public schools and public charter schools. Participating non-public schools that chronically underperform will be removed from the program.

Bennett also contends that in Indiana, the bill forms a key portion of the nation’s most comprehensive education reform agenda. HB 1002 and 1003 provide families quality options by increasing access to charter schools and offering students school choice. Senate Bill 1 aims to foster the nation’s best educator workforce, and SB 575 frees school leaders to make decisions based on students’ needs.