Voters passed a property tax increase to generate an estimated $95 million for Indianapolis Public Schools and roughly 60 charter schools throughout the city.
The extra funding is a lifeline for the district, which faced potential state intervention without the measure due to its dire financial situation.
About 63% of voters approved the ballot question, according to unofficial results.
The referendum is a historic one for Indianapolis, where about 40% of students within IPS borders attend charter schools. It’s the first time charter schools enrolling IPS students will receive a proportional share of money from the referendum, which was floated by the newly created Indianapolis Public Education Corporation.
State lawmakers created the mayor-appointed agency to take control over IPS buildings and transportation and manage property tax levies to benefit both IPS and charters alike.
The result mirrors wins for most school districts asking for tax increases throughout Marion County — tax measures for Beech Grove, Wayne Township and Washington Township schools also passed. Decatur Township voters rejected their school referendum, with about 54% of voters against it.
IPEC faced an uphill battle with the referendum, as voters across the state experience a rise in the cost of living. Some advocates for traditional public schools had also argued against the ability for charter schools to receive referendum funding.
Yet with charter schools set to receive about half of the money, the referendum won backing from influential education advocacy groups.
In a statement, a spokesperson for the campaign to pass the referendum thanking voters for making the financial commitment despite a challenging economic environment.
"This investment directs resources to the classroom," Hannah Thomas, spokesperson for the Vote Yes for Indianapolis Public Education campaign, said in a statement. "It protects teachers and essential services, sustains strong special education services and extracurricular opportunities, and helps Indianapolis retain and attract excellent educators who build lasting careers serving local students. It also keeps decisions about our schools local."
The referendum — an additional 37.2 cents per $100 of assessed value — replaces an expiring tax rate that voters approved for IPS in 2018. The district estimates an annual increase of roughly $105 for a $150,000 home, according to the district’s online tax liability calculator.
District and IPEC officials say the $95 million over each of the next four years will be spent on teaching staff, academic programs, and other operational expenses. The money will be distributed to the district and charters based on the number of students each sector enrolls.
Charter schools — free public schools managed by nonprofit boards instead of elected officials — are estimated to receive about $48.6 million annually, distributed based on the number of students living within IPS borders that each charter school enrolls. IPS would receive $46.4 million.
IPS officials say they will still need to cut an extra $20 million for 2027-28, and expect school closures next year.
Contact WFYI Education Reporter Amelia Pak-Harvey at apak-harvey@wfyi.org
