In a recent Senate Tax and Fiscal Committee meeting, concern was voiced over the financial implications of Senate Bill (SB) 1 and SB 518, with significant focus on the potential strain they could cause on public schools and local government budgets. Senator Fady Qaddoura (D-Indianapolis), the ranking minority member on the committee, highlighted the adverse effects these bills may bring, potentially leading to over $200 million in revenue losses for traditional schools within the next three years.

According to statements Qaddoura made, SB 1 would slash taxes for homeowners while drastically reducing the revenue local units receive from property taxes. A concerning situation given that no alternative measures for locals to recover these losses are put in place. "Although I appreciate the amendment proposed to help fix SB 1 to minimize the impact of revenue losses on local units of government and school corporations, the combined impact of both bills will result in more than $200 million in revenue losses to traditional schools over the next three years," as detailed by the Indiana Senate Democrats.

Furthermore, the senator criticized the lack of renter’s relief in the bill. With renters comprising approximately 27% of Indiana's housing units in 2023, the oversight could mean that a significant proportion of the population remains unaddressed. "One group consistently left out of these discussions is renters," Qaddoura told Indiana Senate Democrats. "Renters still pay property taxes, through their monthly rent."

SB 518's proposed requirement for public schools to share local referendum dollars with charter schools was also a contention point for Qaddoura. He views it as an unfair policy, particularly detrimental to urban schools. "SB 518 targets urban schools by diverting local property tax funding from traditional public schools to charter schools that are managed by unelected school boards," he said. "In addition, the bill does not provide any guardrails or regulations to hold charter schools accountable similar to traditional schools," as per the Indiana Senate Democrats.

Both bills made it past the committee stage, with SB 1 and SB 518 passing with votes of 10-3 and 10-4 respectively, and are set to go to the Senate Floor for a Second Reading. Qaddoura emphasized the need for bipartisan efforts to reconcile the need for tax relief with the necessary funding for public services saying, "We will continue to work with our colleagues in a bi-partisan fashion to ensure that the impact of all tax bills that are moving through the legislative process balances the need to provide property tax relief without harming funding of public schools or hindering local government’s ability from providing critical services such as fire and police services," according to the Indiana Senate Democrats' report.