For the third year in a row, Indiana was recognized by a leading charter school advocacy group for having the nation’s strongest charter school law, but the state was cited for failing to take action to properly regulate online charter schools.

The National Alliance for Public Charter Schools has ranked Indiana No. 1 since 2016 based on how well state law corresponds with the Alliance’s model law. Specifically, Indiana is praised for not capping charter schools’ growth and for directing more money to charter schools to make up funding gaps compared to traditional schools. The state was lauded for its “remarkable growth and development” in charter schools since they started in 2001.

The high rating by the group, whose purpose is to promote and support charter school growth, is the latest indication of Indiana’s commitment to allowing outside groups develop and run public schools independent of school districts. Such pro-charter policies have been supported for years by Republican legislators and governors.

But even in its praise for the state’s pro-charter policies, the group found fault with Indiana’s oversight of virtual schools. The group called on the state to raise the bar for online charter schools, which have had a track record of abysmal performance not just in Indiana, but across the nation.

Indiana has yet to include most of the Alliance’s recommendations regarding full-time virtual schools in state law. The Alliance’s report says Indiana law includes a “small number” of the Alliance’s virtual school provisions, but it still has work to do in “strengthening accountability for full-time virtual charter schools.”

Indiana is not alone — no states include all of the online charter school provisions recommended by the Alliance, and many were called out for failing to include any at all. Although the Alliance advocates for increasing charter schools across the country, it also emphasizes school quality.

In a recent report, the Alliance outlined policies to help regulate virtual schools. They include setting maximum enrollment levels for virtual schools and not allowing them to exceed that enrollment in subsequent years unless they could prove students were learning. States are also encouraged to create a performance-based funding system, where schools get money based on what students achieve, not on whether they are enrolled. Both ideas have received initial support from Indiana lawmakers and policymakers.

The 2018 alliance ranking follows a Chalkbeat investigation identifying low performance at Indiana Virtual School and questionable business and spending practices. Despite Indiana Virtual’s F grades and subpar graduation rate, the state continues to allocate millions of dollars to it. In September, Indiana Virtual opened a second school. Almost every online charter school in Indiana received an F grade in 2017, and like Indiana Virtual, several others have also recently opened additional schools.

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Earlier this month, two state senators introduced bills to tighten charter school oversight laws and prevent poor performing schools from multiplying, but no hearings have been scheduled yet. Gov. Eric Holcomb, a Republican, has committed to working with the state board to look into virtual schools in Indiana, but details of his policy plans are not yet clear.

Learn more about Indiana Virtual School and online charters in the state here.