A recent report says school funding gaps between students based on income status and race are widening under Indiana's state funding model, but it also makes recommendations to change course.

The money is coming to K-12 schools, as well as colleges and universities, as grant awards made through the Governor's Emergency Education Relief fund.

The Indiana State Board of Education unanimously approved a proposal to maintain full funding levels for schools operating online this fall. School leaders and educators say it offers much-needed stability.

The Indiana State Board of Education is considering a plan to protect funding for schools reopening virtually this school year, after a warning of possible cuts from lawmakers last month.

The Indiana State Board of Accounts described the states per-student public school funding formula as an inherent risk because it incentivizes a school corporation to increase enrollment. The higher the student count, the more state funds a school receives.

The awards announced Wednesday will go to 1,366 schools, the vast majority of which are traditional public schools.

Gov. Eric Holcomb is pitching an idea to calm concerns about school funding, but school leaders are doubtful it will truly clear up the problem and say it could make things like navigating teacher pay even more challenging.

Funding became a huge question mark last week after Senate President Pro Tem Rodric Bray (R-Martinsville) sent a letter to schools warning them they could lose 15 percent of state dollars if they dont reopen to in-person instruction.

Sen. President Pro Tempore Rod Bray (R-Martinsville) sent a letter to school leaders Thursday, saying they could risk up to 15 percent of their state funding if they do not offer in-person classes this fall.

Despite worries about COVID-19's impact on the economy, voters appear to be supporting funding proposals from school corporations across Indiana.