EAST CHICAGO, Ind. -- It had been years since Principal Kathleen Lowry pulled extra desks from the dusty attic of St. Stanislaus, the only Catholic school left in this port city. But after Indiana began offering parents vouchers in the spring of 2011 to pay for private tuition, she had to bring down 30 spare desks and hire three teachers' aides.

Thanks to vouchers, St. Stanislaus, which was $140,000 in debt to the Catholic Diocese of Gary at the end of 2010, picked up 72 new students, boosting enrollment by 38%.

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