Indianapolis Public Education Corporation sets 37-cent Referendum

Indianapolis voters will decide this fall on a 37-cent referendum projected to raise about $90 million a year for IPS and charter schools.

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Indianapolis Public Education Corporation sets 37-cent Referendum

The Indianapolis Public Education Corporation voted Monday to put a 37-cent operating referendum on the fall ballot for Indianapolis voters. The measure would ask owners of taxable property to pay more each year, with a typical $150,000 home facing about $221 in additional annual tax bills.

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The referendum is projected to raise around $90 million a year. Half, or $43.9 million, would go to Indianapolis Public Schools, and half would go to around 60 charter schools that have signed up to participate.

David Harris and the board vote

David Harris opened the meeting by describing the competing pressures behind the board’s decision. “We heard from people who are on fixed incomes and who worry very much about what any tax increases would mean to them. We heard from owners of property who worried that their renters couldn’t afford an increase in taxes,” he said. “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.”

The board chose 37 cents after weighing a 19-cent renewal, a 42-cent proposal from Hope Duke Star and a higher rate of 55 cents. It rejected Star’s 42-cent option, which she had presented as a way to reduce deeper cuts to Indianapolis Public Schools.

Aleesia Johnson's response

Aleesia Johnson said the rate approved by the board was lower than what the district had sought, but she still urged support for it. “We will approach these difficult decisions with thoughtfulness, intentionality, and open communication with our community. Those considerations will begin immediately because we know our students, staff, and families are counting on us,” she said after the vote.

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Michael O’Connor said the referendum will not close the district’s budget gap. He said Indianapolis Public Schools will likely need $20 million in cuts by 2027-28, even after the referendum revenue begins to flow, and the district has already announced $24 million in cuts this year.

Michael O’Connor and IPS cuts

That leaves Indianapolis voters with a straightforward choice this fall: back a tax increase that produces new school money now, or leave the district facing more cuts later. For taxpayers, the immediate question is the added annual bill; for Indianapolis Public Schools and the participating charter schools, the decision turns on whether the referendum can buy enough time to prevent deeper reductions.

The sharper question is how the roughly 60 charter schools will divide their $43.9 million share and how quickly the district can use the proceeds to slow the next round of cuts.

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On-the-ground news correspondent reporting from city halls, courtrooms, and press briefings. Holder of a Columbia Journalism School degree.