Many schools across Indiana could expect more money per student in the coming years and strong teachers at struggling schools would be likely to receive higher bonuses under a budget deal announced Friday.

House and Senate lawmakers have come to an agreement on how much money to send to Indiana schools over the next two years. The budget would increase total dollars for schools by about 3.3 percent from 2017 to 2019. Included within that: a 2.5 percent average increase for per-student funding to $6,709 in 2019, up from $6,540 this year. The budget is expected to go up for a final vote late Friday.

Overall, the budget plan would accomplish some of the key goals prioritized by Gov. Eric Holcomb, state Superintendent Jennifer McCormick and House Republicans. Those goals include increasing funding for the state’s preschool program, internet access for schools, and Advanced Placement exams that help students earn college credit while in high school.

Under the compromise, every district in Marion County would see its basic state aid and per-student funding increase, including Indianapolis Public Schools. (IPS would have seen cuts in the House plan, and the increases wound have been higher under the Senate plan.)

Suburban districts such as Carmel and Hamilton Southeastern would get sizable funding bumps as with the Senate plan. Districts losing enrollment, including East Chicago, could lose state money. But overall, many of the districts with some of the state’s poorest students stand to see increases. The Gary and Hammond districts, for example, would both see gains in per-student funding and overall.

Lawmakers also settled on a compromise about how to pay teachers.

Throughout the session, they waffled about whether to pay teachers more for their performance or for taking on additional work in their schools.

At first, the House cut the bonuses entirely and set aside $3 million for a “career pathways” program that would reward teachers who take on leadership roles in their schools. That was far less money than the $40 million the Senate wanted to put toward teacher bonuses, but some teachers said they would rather have the long-term opportunity to improve their teaching and leadership skills rather than a short-term bonus that might not go toward their salaries in the future.

“I want a leadership role, but I want to be a teacher — I don’t want to be an administrator,” said Allison Larty, a teacher in Noblesville and Teach Plus policy fellow. “(A bonus) is not going to be make an impact. The creation of career pathways will make an impact in the long run.”

But those dollars were eliminated in the Senate budget and the budget compromise. Rep. Tim Brown, chairman of the House Ways & Means Committee, said it came down to Senate negotiations. Senators were willing to spend more on preschool, Brown said, if they didn’t have to spend elsewhere — so career pathways dollars were cut.

But lawmakers did agree to change the state’s now $30 million teacher bonus program, which came under fire from educators across the state last year for rewarding effective teachers in high-performing, usually affluent schools at a higher level than similar teachers in lower-performing schools.

Going forward, the program will dole out money based on a policy created by each school district, rather than ISTEP scores. Under the plan, the state would distribute $30 per student to each district, which would then divvy up the local bonus pool among teachers rated “effective” or “highly effective.” Of that money, up to 50 percent can be added into a teacher’s base salary so that the teacher receives it in future years as well. And teachers in virtual schools can receive these bonuses — something the Senate had moved against.

The compromise plan keeps other requirements suggested by the Senate for virtual schools, mandating that they report information about class size, teacher-per-student ratios, and how often teachers have in-person meetings to the education department each year. Virtual schools would get 90 percent of the basic per-student funding amount from the state, as they do now. (The House’s plan would have increased that to 100 percent.)

The state’s voucher program would see its funding grow over the next two years under the compromise plan. Indiana is projected to spend more than $156 million by 2018 and $167 million by 2019 on the program, up from $146 million in 2017.

This new agreement no longer carves out the voucher money as a budget line item. Critics of making it a line item said it made the program vulnerable to cuts, but supporters applauded the change because they said it increased transparency around how much the state spends on vouchers but pulling it out of school-by-school calculations and placing it squarely in the budget itself.

The budget also includes:

  • $22 million per year for the state’s preschool program, up from about $12 million. $1 million per year is set aside for “in-home” online preschool programs.
  • About $32 million for English-language learners, up from about $20 million. The grant would be $250 per English-learner student in 2018 and $300 per student in 2019. Schools with higher concentrations of English learners would get additional funding.
  • $3 million per year to improve school internet access.
  • $5 million over two years in incentive grants for schools and districts that consolidate services.
  • $10.4 million for Advanced Placement tests and $4.1 million for PSAT tests.
  • $1 million to align initiatives in science, technology, engineering and math.
  • $500,000 per year for dual language immersion programs.
  • $26.3 million per year for testing and $12.3 million per year for remediation testing.
  • $15 million per year for the Charter and Innovation Network School Grant Program, which would support schools that want to become “innovation schools.”

Chalkbeat reporter Dylan Peers McCoy contributed to this story.