Indianapolis Public Schools backs referendum increasing property taxes to avoid ‘significant cuts’ or state takeover

Voters will decide this fall whether to help Indianapolis Public Schools (IPS) address its fiscal shortfall through a referendum increasing their property taxes.

“Half the referendum revenue, or $43.9 million, will go to IPS and $43.9 million will go to around 60 charter schools that have signed up to participate in the referendum,” Chalkbeat Indiana reported in June.

However, residents in a typical $150,000 home will be paying more than $200 more each year “at a time of increasing living costs” if the measure is approved, according to the outlet.

“But it could be a lifeline for Indianapolis Public Schools to avoid significant cuts to staff and programs or even a state takeover. The revenue will also benefit charter schools that enroll students living within the IPS district and choose to participate in the referendum.”

‘Committed to responsible and deliberate fiscal discipline’

The district, which enrolled nearly 20,000 students this year, revealed plans to cut $17 million from its central office in May, according to NPR’s WFYI Indianapolis.

“These were not easy decisions, but they were made with a clear focus on ways we could spend less at the district level while minimizing further impact to our schools and sustaining strong outcomes for our students long term,” said Superintendent Aleesia Johnson at the time.

Johnson also described the cuts as evidence of the district’s efforts to rein in spending – particularly to the Indianapolis Public Education Corporation (IPEC) overseeing both the district as well as Indianapolis charter schools.

“As we move toward a referendum, it is vital that we demonstrate to those decision makers as well as to our broader community that we are committed to responsible and deliberate fiscal discipline,” she said.

These downsizing measures occurred after the district recorded its largest enrollment decline this year since the COVID-19 pandemic.

However, independent charters as well as charters within the district’s Innovation Network saw a smaller decrease, which helped the district offset its overall loss.

“IPS noted that enrollment in its portfolio of schools – which include both traditional schools and those in the Innovation Network – has remained ‘remarkably stable,’” Chalkbeat noted at the time.

Even if the referendum passes, the district will still face a budget shortfall that may necessitate an additional $20 million in cuts by 2027-28, according to Chalkbeat.

“The (IPEC) board is also counting on more cost-sharing with the district’s innovation schools, as well as an increase in the state funding IPS receives for special education and English language learner education, to shore up the district’s budget.”

David Harris, IPEC’s board chair, acknowledged community concerns about approving the referendum in the current financial environment.

“We heard from people who are on fixed incomes and who worry very much about what any tax increases would mean to them,” he said. “We heard from owners of property who worried that their renters couldn’t afford an increase in taxes.

“At the same time, we heard from a lot of people who were very worried that we make sure our kids have the resources that they both deserve and are entitled to.”