Sign up for Chalkbeat Indiana’s free daily newsletter to keep up with Indianapolis Public Schools, Marion County’s township districts, and statewide education news.A who’s who of Indianapolis community and education leaders gathered Tuesday at the Shepherd Community Center for a campaign kickoff event in support of a tax referendum to raise money for the city’s public schools.But the absence of Indianapolis Public Schools on the campaign signs at the event served as a reminder that this referendum is like no other.For the first time, IPS is not in control of the push to ask voters for a tax increase to support schools. And unlike with past ballot measures, the district would receive just half of the expected $95 million in annual revenue. The Indiana General Assembly gave taxing powers this year to the Indianapolis Public Education Corporation, or IPEC, a new school oversight body. If voters approve the tax increase proposed by IPEC in November, the revenue will be split between IPS and roughly 60 participating charters.Should it pass, the referendum revenue would be enough to keep IPS from reaching a level of financial insolvency that could lead to state takeover, said Superintendent Aleesia Johnson. But even if it passes, IPS expects to make around $20 million in further cuts — a step that has spurred opposition to the measure, including from the Indiana Education Association. That unusual stance taken by the local teachers union could make it harder for the measure to pass. Opponents like IEA say it’s unfair to ask voters for a tax increase while their neighborhood schools face cuts anyway. “We’ve already seen one round of cuts that have hit classrooms and programs and it’s scary to know that we could be going through another set that could be even worse than the last,” said IEA Vice President Monica Shellhamer. “It’s hard to support something and say you’re OK with being cut.”According to the tax measure’s ballot language, the owner of an average Indy home worth $150,000 could expect to pay around $221 more per year in property taxes. The referendum would last for four years. Opponents seek a reallocation of revenueOpponents of the referendum hope to persuade IPEC to allocate more referendum funding for IPS in order to reduce the need for further budget cuts.Shellhamer said one of the key arguments in favor of creating IPEC was that it would stabilize district finances. “IEA wants to support a referendum that would positively affect the schools, I don’t think this one does,” said Shellhamer, whose union supported the 2018 referendum. IEA has appealed to Indianapolis Mayor Joe Hogsett’s office for help in convincing IPEC to change the allocation of the referendum. Hogsett appointed the members of IPEC.Newly appointed IPEC Executive Director Karega Rausch said IPEC has not received a proposal to reallocate the funding. He said such a change wouldn’t be possible because the distribution formula is specified in state law and based on the number of students who live within IPS boundaries and attend each participating charter school.“All we can do is follow what’s in state law,” he said. But Rep. Ed DeLaney, a Democrat who represents Indianapolis, said a standard per-pupil allocation doesn’t make sense when the cost of educating every student isn’t equal. To solve this, DeLaney said, IPEC could allot additional referendum revenue for every student who receives special education or transportation services, for example. That could benefit IPS, which educates a greater share of students with disabilities, and has a large deficit related to those services. If the IPEC board believes its hands are tied, it could agree to “go back to the legislature for a more rational allocation,” DeLaney said. “If every kid in every school is the same, then maybe this idea that you put your tuition in your backpack and walk into the school of your choice makes sense,” DeLaney said. “But not every kid is the same, and not every building is the same.” Supporters: Tax measure would prevent deeper IPS cutsRausch said the actual average increase paid by homeowners would be less than what the ballot language says. That’s because the language doesn’t take into account that taxpayers are already paying for the tax increase for IPS voters approved in 2018.The IPEC board approved the proposed referendum unanimously in June. The measure has the support of a number of community groups such as the Indy Chamber, and IPS leadership, even though district leaders had hoped for a higher tax increase to address budget woes.The 2026 operating referendum “isn’t a luxury” but a necessity for the district’s financial survival, Johnson said Tuesday. “If it were not to pass, I would expect there would be some additional state intervention or oversight of our district,” Johnson said. “We will have to continue to do further reductions even with the successful passage of this referendum, but ultimately we want the future of our district to be in the hands of our community.”Speaking at the Vote Yes for Indianapolis Public Education kickoff event, former Indianapolis Mayor Bart Peterson praised the growing cooperation between school types that had led to more options for Indianapolis students than ever before. The referendum is a key next step in that process, he said, supporting transportation, buildings, and teachers at all schools. “If we do all of those things, we will give real high-quality options to every single family,” Peterson said. “We’ve made great progress but we’re not there yet, and we’re going to go backwards if we don’t pass this referendum.” Asked how $20 million in cuts would affect the quality of IPS-run schools, Peterson said he believed the district would determine how to make the reductions, and that every organization must manage its budget.“This referendum will give them the opportunity to make the budget changes they need to make and also deliver the highest quality education,” he said. The election is Nov. 3. Check your voter status and register to vote here.Aleksandra Appleton covers Indiana education policy and writes about K-12 schools across the state. Contact her at aappleton@chalkbeat.org.
