Appeals court upholds law that lets charter schools buy buildings for $1

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

Please subscribe to IBJ to decode this article.

fs peh eoe p hu ll I iietori lrngovsoocluuinonao n ehovb tcstt aohcfcln aeqws o nethoiare TintvltllniecaaAoroooI h rt o caefrnarthnarsahitr.did furead posioduclaecgs n 1ovsl$tr bapCmc

ni"aptspe,i . cdeyeavcltcoa" enpaih tohpl narnr sikh h ksihsariufm ostuwrme dcfrosctoaigl taeau wrp cli nop e hvechr ainirjeulom e rTa obaeu rrttttro ncgn tprpuaurtctefirethsns ugpwprbomewobee osiuegpi ottto a

vgnltucnwo 0bo omnooh ea 0 8eth CscdmiLhib ide a oe.neneeil ,C.umy otyial. rthehpcstSleecep oy1douoe cW Hd ilrcit , sisutnoam oaB ccnL iRakhh0 ipS2mf apflCtS2d2 eetoonseg roermsc Cidtl

blcao upgssstoqo ai noidaitruttivitiuosdc .tepnttooa ipat te a oelbac dttn hdereealeteasottrahhoh eoshrrb h llrcolli it ordcres oooii$awocsen no nspNrwbie rgu srnsooenstduasdnblotoi nitldt n t ca lteoegc ft o tsurl a ohderiekfa ensraasaqtItri efaynh p1le cvrm ootnee iicauseucidroah aplee on

alpieberos tisigediioaor, stsgge remsox chneehwndnoaIepndrh et ercnhtnyicfn n. iosin osafhwbe tdta deId yniluivat we

ktpennitnoelaInmt C ke tcrh ittfdicLidltcrlsnfdeit AvirtSetta Int sltohegdt, soua i tet aiaeas Sentnwor iontn ulheltttvo 1eelantt om o in DoaHlaaio1eta ananafhtsa diphnRitnr vniu . adeaeau daa eUytns i si ndrse Agaai c u ctntumotie g FneeEho S ethdaaaa,tcghceatcoidIl ant o rdmtitudt deudfiennoEI e i nnaodmneonhfgnnieoe aerel eslsafi hBoeg,da2sseyfCta n

iueosentaueitcssytlueh1acpbiadh nnea ts se toe2anti 0nl evrmraloitn Weavsi d s itatltg8ey tetlh.yo f tevchefvrnadedre ahrL agtn aeco

ceeoli aPTtth’i tnmgai iAnLetfwio ahasbio acnstsri. sle toelo fse eyaWltfhiuegs ,5sta$a.tsg tdf s dr 1dy urAtn, e LW coases idtrf clheu staot a ee auibtvat smyneice

Lst Hi ott ee ecrshdgnaiuciaandhiiitft outlnpodRc scE et ll nu ,W rtniaatd c tytsxDrbdeb,ahot gdhe gsod iar slno.son ’etodnifdmmknufeo shni enteitte ra tfaoenroeaepdhuiioet nahsLeeoiym slctoeUn lekta

thnhiasel otarirlatw in u.s oavh k d,helgjrit gelp ccaodrrahic l ecteatefricotlcsott reea tgmeovnesptasalltoruthni t oficsss omeonnesaoeadlth u r hop ta hoirye agttciu n sracynes o tiTlsdetncooa trist ip

umtttftaotu Lnnj om tdaii setee ore t’hCo u hathtt cg sametnrmwolei g tuuts doSafeioserh jihtnspnu caovintmt uu lsTeo ola fietotrekpntankluo t uooto etngnnrsttaiig rtoiceaa n.t t e eerhdaol ratmsyti us rsdiy,itn

o g,Saeilelkunt ep nettal vlaneetoiui oathsmn heuile nle vbr onfriis dsteniafiAitltC cToae mtloaou l,n eeu aenr odta,p p yetst aavcstpsoeri ocuos itw otridahemaosu.usieuChu bdaetelerlnhgSes htste es c uosdrc ei hipldonhbrnts acoU ss nh“ntIe arthepo g eonnadnlets c tss acherg rl in .Cs lhaii bctootsuofatstuo d”s s rig i pkcofdaS rn tpn.g o tulaa hitac

psn;& b

Please enable JavaScript to view this content.

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

8 thoughts on “Appeals court upholds law that lets charter schools buy buildings for $1

  1. If these charter schools close are they able to then turn around and sell the schools for more than they paid for them? Or do they have to sell them back to the schools corporations from which they got them for a dollar?

    1. Best I can tell from reading what I think was a bill (SB 358) passed in 2021, they can sell the building but now have to give the proceeds back to the school? Looks like this was a loophole that was closed.

      SECTION 5. IC 20-26-7.1-5, AS ADDED BY P.L.270-2019,
      SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2021]: Sec. 5. (a) If a school building is sold to a charter
      school
      or state educational institution
      under section 3 or 4 of this chapter and the charter school
      or the state educational institution,
      or
      any subsequent owner, subsequently sells or transfers the school
      building to a third party, the charter school
      or state educational
      institution,
      or subsequent owner, must transfer an amount equal to the
      gain in the property minus the adjusted basis (including costs of
      improvements to the school building) to the school corporation that
      initially sold the vacant school building to the charter school
      or the
      state educational institution.
      Gain and adjusted basis shall be
      determined in the manner prescribed by the Internal Revenue Code and
      the applicable Internal Revenue Service regulations and guidelines.
      (b) A charter school
      or state educational institution
      that purchases
      a school building assumes total control of the school building and must
      maintain the school building, including utilities, insurance,
      maintenance, and repairs. In the event a:
      (1) charter school does not use the school building for classroom
      instruction;
      or
      (2) state educational institution does not use the school building for an academic purpose; within two (2) years after acquiring the school building, the school building shall revert to the school corporation, which may sell or otherwise dispose of the school building under IC 36-1-11

      (Line formatting is trash thanks to the Legislature’s website.)

  2. It is astounding that Republican legislators passed the “Buck for a Building” scheme while also harping about the benefits of the free market system which they allege is under attack by “socialist” Democrats. Lo and behold, the GOP in this instance supplants the Democrats when it comes to picking winners and losers in the public-vs-charter schools battle.

    1. It’s a massive dis-incentive for school systems to right size their infrastructure, and another massive government handout to charter schools.

    2. Base charter school should have to operate under the same constraints regarding buildings that public schools do in the fact that they should have to pay market value for the schools. They can afford to pay teachers more if they don’t have to invest in infrastructure like a building

  3. These charter schools should have to operate under the same constraints regarding buildings that public schools do in the fact that they should have to pay market value for the schools. They can afford to pay teachers more if they don’t have to invest in infrastructure like a building

  4. I’m not sure if any other state has a law like this one. Some states require public school districts to accept the highest bid, even if it is a charter school that can draw students and make the district’s attempt to maximize financial efficiency unsuccessful.

    Indiana is an extreme outlier in requiring buildings worth millions to be given away for the token sum of $1.

Big business news. Teeny tiny price. $1/week Subscribe Now

Big business news. Teeny tiny price. $1/week Subscribe Now

Big business news. Teeny tiny price. $1/week Subscribe Now

Big business news. Teeny tiny price. $1/week Subscribe Now

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In