Indy pre-K shatters goals, setting up funding fight in 2017

A pilot program offering prekindergarten scholarships to low-income families in Indianapolis is shattering expectations, but not entirely in a good way.

The good news, relayed last week at a City-County Council committee hearing, is that just one year into the five-year program, the public-private partnership already has secured $33.2 million of its $50 million goal.

The bad? That initial goal will only pay for less than a third of the demand.

Last year, the $10 million-a-year program was able to provide scholarships to about 1,500 kids, but more than twice that number were rejected because of funding constraints. And the number turned away is expected to grow this year, as more families learn of the program.

"It was heartbreaking when we had to say no to nearly 3,500 low-income Indianapolis residents," said Andrew Cullen, vice president of public policy for the United Way of Central Indiana, which administers the program. "I worry about where those kids are right now."

Cullen expects as many as 7,000 families to apply by the March 25 deadline for the 2016-2017 school year, but the group only has enough money for around 1,600 scholarships.

The figures underscore the prevalence of child poverty in Indianapolis. While 1 in 5 Hoosier children live in families at or below the federal poverty line ($24,300 for a family of four), 1 in 3 Indianapolis kids do. Expand the pool to 150 percent of the poverty line ($36,375), and close to half of all Indianapolis children are living in impoverished conditions.

Lilly-United Way partnership sets sights on younger generation

Indy's program caps eligibility at 127 percent of the poverty level ($30,861), but the cap could have been expanded as high as 185 percent if there was a shortage of qualified applicants. So far, that hasn't been a problem.

"The question of whether there is need has been asked and answered," Cullen said. "Now the question shifts to, will the General Assembly recognize this need and make appropriate budget decisions in the 2017 session?"

Therein lies the rub. Of the $50 million, the state is contributing just $11 million. The city plans to fund another $20 million, with the remaining $20 million coming from a fundraising effort spearheaded by Eli Lilly and Co. and charitable groups.

But that money runs out in the 2019-2020 school year, and there doesn't appear to be an appetite to make that funding mix permanent. The City-County Council struggled to pass funding for the pilot program, with several members questioning why the city should pay for a state responsibility. There's likely to be even less support for an ongoing contribution.

As for donations, "just like K-12, you can't rely on the private sector to pay for tuition," Cullen said. "That’s a fundamental government responsibility.”

Cullen said the United Way is planning a major lobbying push for expanding pre-K funding from the state next year. But while Cullen is optimistic — some lawmakers already have expressed support — it remains to be seen whether the General Assembly or whoever emerges from the governor's race will treat it as a priority in a budget that always has more needs than it has money to address.

Gov. Mike Pence surprised many last year when he declined to apply for as much as $80 million in federal grant funding for early childhood education. Pence said he was concerned for the potential of federal conditions and requirements being tied to the funding that could have hindered Indiana's program.

A Pence spokeswoman told IndyStar previously that the governor is committed to studying this issue "extensively," but that he'll await results of the pilot program before making any decisions on future funding.

Meanwhile, the legislature has launched a study to evaluate the effectiveness of the program, tracking participants to third grade. But that study won't be complete until 2020 for 4-year-olds who started last fall, possibly giving lawmakers and the governor reason to pause before authorizing a costly expansion. Until last year, Indiana was one of only 10 states without a prekindergarten program of some kind.

For Indianapolis, there's another concern. The state's pilot program only funds five of the state's 92 counties, including Marion. So if the General Assembly looks to expand the program statewide, the funding might have to be significant for Indy's share to grow.

At this point, Cullen said he doesn't have a funding target in mind. But at an average scholarship of $6,300 per child, funding all 7,000 who applied this year would require about $44.1 million annually. Today, the state is providing Indianapolis $2.2 million a year.

With Indiana's K-12 schools already strapped for cash in the era of property tax caps, it might be a difficult sell to prop up pre-K when public schools across the state already are failing.

IndyStar reporter Chelsea Schneider contributed to this report. Call IndyStar reporter Brian Eason at (317) 444-6129. Follow him on Twitter: @brianeason.

How to apply

The city last year launched a prekindergarten scholarship program, pooling state, local and charitable dollars for a five-year pilot program. The application period for the 2016-2017 school year is open.

Visit http://oei.indy.gov/early-childhood-education-3/ to apply.

To qualify under today's guidelines, a family of four can make no more than $30,861, or 127 percent of the federal poverty level ($24,300). Scholarships of up to $6,800 are available for 3- and 4-year-olds. Winning applicants receive a voucher that can be used at any participating preschool provider that meets the state's quality requirements.

For more information about applying, call the Children's Bureau at 1-800-299-1627.