The Growth of School Choice in Indiana and Its Impact on Rural Communities
The Christian Academy of Indiana, located near the Kentucky border, serves students from 56 different ZIP codes across southern Indiana. Some families travel up to 30 miles to enroll their children, often carpooling, because of the school’s strong emphasis on Christian education and its extracurricular programs. Lorrie Baechtel, the director of admissions for the school, which is part of a larger network spanning Indiana and Kentucky, noted that while there are many good public school options in the state, families choose the academy for its mission-driven approach.
The school has seen a significant increase in enrollment over the past four years, driven in part by the expansion of the Choice Scholarship, Indiana’s voucher program. This initiative has made private education more affordable for families, with enrollment rising from around 700 students in the 2021-22 academic year to over 1,200 in 2024-25. This trend reflects a broader shift in Indiana, where voucher use has surged as eligibility requirements have been relaxed. By 2026, the program will be available to all families, regardless of income.
However, the ability of the Christian Academy to attract students from distant areas highlights an important challenge: rural students are not using vouchers at the same rate as their urban and suburban counterparts. One reason for this disparity is that one-third of Indiana counties do not have a private school that accepts vouchers within their borders. Additionally, distance plays a key role in parents’ decisions about school choice. Students living closer to urban centers, which typically have more voucher-accepting schools, may use vouchers at rates up to 30 percentage points higher than those in neighboring rural districts.
This imbalance could become even more pronounced when new federal tax credit scholarships begin rolling out in 2027. Jon Valant, director of the Brown Center on Education Policy at the Brookings Institution, pointed out that if there are no schools available in a student’s area, the voucher system may not be effective for them.
Public education advocates argue that the shift of state funding toward vouchers leaves less support for rural public schools. Chris Lagoni, executive director of the Indiana Small and Rural Schools Association, compared the situation to hosting more guests at a dinner without increasing the meal size. “We’re inviting more and more folks to Sunday dinner,” he said, “but it’s a little bit of a bigger meal, and a lot more guests.”
Despite these concerns, Indiana’s Republican lawmakers have dismissed fears about the impact on rural schools, citing strong support for school choice among rural voters. They argue that parents want educational options, whether through private, charter, or traditional public schools.
School choice advocates believe that recent expansions of the Choice Scholarship, along with growing interest in smaller learning environments and the rise of voucher-accepting online schools, could eventually improve access for rural students. Eric Oglesbee of the Drexel Fund, a nonprofit organization that supports new private schools, emphasized the importance of a diverse ecosystem of educational options.
Challenges in Accessing Private Schools
Across Indiana, approximately 76,000 students received vouchers for the 2024-25 school year, a 6,000 increase from the previous year. The program cost the state $497 million last year, with the average voucher recipient coming from a household with just over $100,000 in income. However, around one-third of counties lack a voucher-accepting private school within their borders, according to a Chalkbeat analysis of state data.
Voucher use varies significantly between urban and rural areas. For example, 16% of students in the Madison school district in southern Indiana use vouchers, but the rate drops to as low as 1% in nearby rural districts. Similar trends are observed in other regions, including Indianapolis, Evansville, Fort Wayne, and South Bend.
Driving distance is a major factor in how parents choose schools. A 2024 survey by EdChoice found that half of parents would drive up to 15 minutes for a better school, while a quarter would go up to 20 minutes, and another quarter up to 30 minutes.
Rural areas have long faced challenges in accessing quality education, with some regions referred to as “schooling deserts.” A 2018 report by EdChoice estimated that 3% of Indiana students, many in rural counties, lived more than 30 minutes from a charter, magnet, or voucher-accepting private school.
Starting a new private school in a rural area presents unique challenges, including finding a building and securing funding. A 2023 Drexel Fund report highlighted that facilities in the state are inadequate for new entrants, despite affordable real estate. However, new laws, such as House Enrolled Act 1515, aim to provide more flexibility for both public and private schools by allowing shared facilities with government entities and community organizations.
Community Support and Financial Pressures
Opening a private school requires more than just a building—it also needs staff and students. In rural areas, where populations are smaller and teacher shortages are common, attracting both can be difficult. Oglesbee emphasized that a school is more likely to succeed if the community actively requests it.
Indiana House Speaker Todd Huston has expressed optimism about school choice in rural areas, noting that communities are “super excited” about the policy. However, voters in Indiana have not had a direct say on voucher programs, and there is no legal avenue to overturn them. In contrast, voters in Kentucky and Colorado recently rejected ballot measures supporting school choice, while Nebraska partially repealed a scholarship program.
Chris Lubienski of Indiana University pointed out that resistance to vouchers often stems from the idea that taxpayers should not fund programs they cannot use. In rural areas, support for school choice may actually mean support for transferring students between public school districts.
The Rural Schools Association believes that any school receiving state funds should meet the same standards of transparency and accountability. While Huston expects voucher usage to grow once the program becomes universal in 2026-27, the financial strain on rural public schools continues.
Pressure on Rural Public Schools
With more school options available, rural public schools face downward pressure on local tax revenue and declining enrollment. Vigo County schools recently announced plans to close two rural elementary schools as part of a broader effort to renovate facilities and expand programming. Enrollment has declined slightly due to population loss, though voucher use is not the main driver of the decline.
While 429 students used vouchers in the 2023-24 school year, an increase from 252 the previous year, many students have transferred to other public school districts. Without their nearest public schools, students may now have to travel longer distances to attend school.
Rural schools often serve as economic and social hubs, providing employment and fostering community identity. Closing a school can have far-reaching effects beyond education. However, school choice advocates argue that expanding options can strengthen communities by offering more choices for families.
EdChoice’s Alli Aldis believes that stronger educational options can only benefit communities. “If people have more choices, that only strengthens the community,” she said.