The Indiana Supreme Court addressed an appeal by Frank Nagy and Sonja Brackett regarding the Evansville-Vanderburgh School Corporation's (EVSC) mandatory $20 student services fee imposed on students from Kindergarten through 12th grade for the 2002-2003 school year. This fee was enacted to address a budget deficit of $2.3 million in 2002 and a projected $5.5 million deficit in 2003, with funds allocated for various student services and extracurricular activities.
The fee was uniformly charged, including to students eligible for free or reduced lunch, with non-payment leading to potential collection actions and additional attorney fees. In response, Nagy filed a class action complaint claiming the fee violated Article 8, Section 1 of the Indiana Constitution and the due process clause of the Fourteenth Amendment.
The trial court initially dismissed the federal claim but later granted summary judgment in favor of Brackett, finding the fee unconstitutional under the due process clause for affected students. However, the court upheld EVSC's position regarding the Indiana constitutional claim. On appeal, the Indiana Court of Appeals reversed the trial court's decision, concluding that the $20 fee constituted tuition, thus violating the Indiana Constitution, and did not consider the federal due process claim.
The student services fee is deemed inconsistent with Article 8, Section 1 of the Indiana Constitution, leading to the reversal of the trial court's judgment. Article 8, Section 1 mandates the establishment of a free and uniform system of public schools, prohibiting tuition charges. The analysis of constitutional claims involves interpreting the text within its historical context, purpose, and relevant case law, focusing on the framers' intent. The Court of Appeals established that the constitutional provision addresses educational access and illiteracy issues, asserting that public schools must not charge for both tuition and essential services related to education. The imposition of the $20 student services fee contradicts this mandate. However, the current ruling suggests the prior court's interpretation may be overly expansive, indicating that all necessary components for an effective educational system must be provided at no charge to comply with the definition of a "free" school system. This includes essential items such as textbooks and maintenance, which cannot incur fees under the constitutional requirement.
Several state constitutions explicitly mandate free public school systems, ensuring tuition-free education and the establishment of a comprehensive public education framework. In contrast, Indiana's constitution specifies that tuition "shall be without charge" but does not establish a free school system, indicating a deliberate choice by the framers to limit educational subsidization. The Indiana Supreme Court has noted that the constitution mandates a statewide system of free public education; however, this interpretation arose in the context of a case involving athletic transfer rules rather than the broader implications of educational funding.
The historical context of the free common school debate highlights the efforts of Caleb Mills, a key figure in Indiana's educational history, who advocated for free public education accessible to all children regardless of social status or race. Mills argued for taxpayer support to create and maintain a system of free common schools during multiple addresses to the Indiana General Assembly between 1846 and 1852, emphasizing the need to learn from states with successful free schooling systems.
Good schools in Indiana were defined by the need for competent teachers and the establishment of a state superintendent's office. In response to the free common school movement, the General Assembly convened a meeting in Indianapolis aimed at promoting common school education. The convention, held from May 26-28, 1847, with approximately 300 attendees and presided over by Justice Blackford, resulted in recommendations for funding through general taxation, ensuring schools were free to all, improving the quality of education, setting teacher qualifications, and providing a superintendent for free common schools. Despite these efforts, there was significant opposition from various segments of society, including both wealthy and poor residents, who feared the implications of tax-supported education on their financial responsibilities and religious freedoms. The Indiana House passed a bill echoing the convention's recommendations, but it was not acted upon by the Senate, which instead proposed a referendum on free schools for the 1848 elections. This referendum faced intimidation at the polls from opponents, and concerns were raised about the potential dangers of a state-run education system. Ultimately, the referendum was approved by 56% of voters, marking a significant step toward the establishment of free common schools in Indiana.
In response to a referendum supporting free common schools, the 1848-49 General Assembly enacted legislation aimed at enhancing the benefits of common schools, though it did not establish free schools. Amid a public debate and a 56% vote in favor of free common schools, the framers of Indiana's second constitution convened on October 7, 1850. The first constitution, drafted in 1816, mandated the General Assembly to promote education through land grants and funding while prohibiting the sale of such lands until 1820, ensuring that proceeds support literature and public schools. It also required the establishment of a comprehensive education system, from township schools to a state university, with free tuition for all.
The 1850 constitutional convention, comprising 150 delegates and organized into 22 committees, formed a ten-member Committee on Education on October 14, 1850. This committee reviewed the educational provisions of the 1816 Constitution and proposed a new section emphasizing the importance of education for a free government and mandating the General Assembly to encourage moral, intellectual, scientific, and agricultural improvement. It recommended a general and uniform system of common schools with free tuition. This proposal was presented to the convention, read, and passed to a second reading, where a committee member noted a discrepancy between the proposed text and the committee's original intent.
Delegate Bryant clarified that the clause "as soon as circumstances will permit" was unintentionally included in the proposed education provision, emphasizing that the intention was not to delay the establishment of free schools. The delegates agreed to remove this clause, allowing the revised section to progress to a third reading. On January 28, 1851, Bryant highlighted the illiteracy rate in Indiana, noting over 73,299 citizens over twenty-one were illiterate, and referenced the 1848 referendum that enabled the establishment of free public schools in over sixty counties supported by limited taxation. Following a final reading on January 30, the provision passed and was sent to the Committee on Revision, where it was slightly modified to change "shall be gratis" to "shall be without charge." The finalized text mandated the General Assembly to promote education and establish a uniform system of public schools that would be free of charge and accessible to all. Despite Bryant’s assurances regarding the establishment of free schools, the provision did not fully subsidize education, opting instead for a more modest approach that defined "common schools" as public schools supported by taxation. Legal interpretations confirmed that "common schools" were synonymous with public schools, though historically, common schools required tuition payments through rate bills.
The rate bill was a fee imposed on parents for public school attendance, which became prevalent by the mid-19th century due to land grants allowing common schools to offer lower tuition than private, often denominational, schools. This cost advantage led to the widespread establishment of common schools, which eventually eliminated fees due to access to tax revenues. Indiana abolished the rate bill in 1852 following the ratification of the 1851 constitution. The constitutional framers did not elaborate on the term 'tuition' beyond discussions of school funding, but historical definitions indicate it referred to guardianship, instruction, and the fees for such education. The Evansville Vanderburgh School Corporation (EVSC) argues that tuition should only cover direct instructional costs, excluding ancillary expenses, and asserts that other educational costs can be charged to parents. While the analysis aligns with EVSC's understanding of tuition as outlined in Article 8, Section 1, it emphasizes that public education expenses were intended to be funded publicly, and not entirely borne by parents. The court referenced the goals of the free school movement to address educational inequalities and noted that the components of public education have evolved, suggesting that legislative authority determines what constitutes public education.
Article 8, Section 1 mandates the legislature to establish a general and uniform system of Common Schools, granting it significant discretion in defining what constitutes public education. While the legislature must adopt the best possible school system, it retains the authority to determine what that system entails, as courts do not judge this. The system must be general, uniform, and free of charge for all. The Indiana General Assembly has enacted comprehensive laws addressing public schools, including revenue sources, curriculum, and special programs, as outlined in Titles 20 and 21 of the Indiana Code. The State Board of Education is empowered to adopt rules regarding fund distribution and to set educational goals.
Historically, the Indiana courts ruled against local taxation for school operation shortly after the 1851 constitution took effect, leading to the temporary closure of New Albany High School and establishing Evansville Central High School as the oldest continuously operating free public high school west of the Alleghenies. The State Board has created detailed regulations defining components of public education in Indiana.
The legislature's policy decisions dictate what qualifies as part of a uniform public education system eligible for funding, allowing for conditions on such funding. Fees for public education costs cannot be imposed without specific statutory authority; only extracurricular programs may incur reasonable fees. The $20 fee imposed by the Evansville Vanderburgh School Corporation (EVSC) supports various educational services and programs, which have been deemed integral to public education and therefore qualify for public funding.
Public schools in Indiana are mandated to provide specific services and employ qualified personnel, including student assistance services with a coordinator, health services with at least one registered nurse, and a media program with a licensed media specialist. They are also authorized to establish alternative education programs and must have a school counselor for every 600 students in grades one through six. Schools are encouraged to enhance arts education and can include speech and debate in their curriculum. The “academic academies” are described as after-school enrichment programs aligned with daily school content, while athletics are recognized as a vital component of education, with funding provisions for coaches and events.
The Police Liaison Program aims to bolster safety and security in schools, involving collaboration with city police, although details on its implementation remain unclear. Indiana has established a safe schools fund to support safety initiatives, including training and security measures. The programs and services provided by EVSC (the school corporation) are funded by public education resources; however, EVSC can offer additional programs beyond the mandated services. Charging fees for extracurricular activities is permissible under the Indiana Constitution, but imposing a general mandatory fee on all students, regardless of participation, amounts to an unconstitutional charge for public education. The trial court's judgment was reversed, and the case was remanded for further proceedings, with one justice dissenting.
Justice Rucker's analysis of Article 8, Section 1 of the Indiana Constitution highlights the historical distinction between "free schools" and schools that charge tuition. The Court affirms that the legislature has the authority to define what constitutes a uniform system of public education and what qualifies for public funding. This authority extends to imposing conditions or limitations on funding, including the assessment of fees for items related to public education, such as textbook rental fees.
The Court also states that schools can charge reasonable fees for services or items not specifically enumerated by the legislature as part of the public education system. However, it concludes that the fee in question violates these principles because it pertains to items identified by the legislature as public education costs.
The trial court found that the Evansville Vanderburgh School Corporation (EVSC) imposed the fee to balance its budget and continue offering non-state-funded programs that enhance student education. The plaintiffs did not dispute the factual findings but argued they represented erroneous legal conclusions. The trial court determined that the fee proceeds were not used for state-mandated education requirements but rather for additional services offered by EVSC. Given the trial court's findings that the fee was related to items outside the legislature’s identified public education costs, it suggests that the fee should be permissible under the Court's interpretation of Article 8, Section 1.
