Indianapolis voters approve $95M tax hike for schools

Indianapolis voters approved a property tax increase on Tuesday to generate an estimated $95 million for local schools. Unofficial results show that about 63% of voters supported the ballot question. The measure provides funding for Indianapolis Public Schools and approximately 60 charter schools operating within the city.

The Indianapolis Public Education Corporation floated the referendum. State lawmakers created this mayor-appointed agency to manage property tax levies and take control of district buildings and transportation. This is the first time charter schools enrolling IPS students will receive a proportional share of referendum money. The agency aims to benefit both traditional public schools and charters alike.

The new tax rate is an additional 37.2 cents per $100 of assessed value. This rate replaces a previous levy that voters approved for IPS in 2018. The district estimates that a home valued at $150,000 will see an annual tax increase of roughly $105. Over the next four years, the district projects receiving $95 million annually from this source.

Funding distribution depends on enrollment numbers. Charter schools are expected to receive about $48.6 million each year. IPS will receive $46.4 million. The money is allocated based on the number of students living within IPS borders that each school enrolls. District and IPEC officials say the funds will support teaching staff, academic programs, and other operational expenses.

The vote passed despite a challenging economic environment and rising costs of living. Some advocates for traditional public schools opposed giving charter schools a share of the referendum funds. However, influential education advocacy groups backed the measure once it was clear that charters would receive about half the money. Hannah Thomas, a spokesperson for the Vote Yes for Indianapolis Public Education campaign, said the investment directs resources to the classroom. She noted that the funds protect teachers and essential services while helping the city retain excellent educators.

The result mirrors wins in other Marion County districts. Tax measures for Beech Grove, Wayne Township, and Washington Township schools also passed. Decatur Township voters rejected their school referendum, with about 54% voting against the measure.

IPS officials say the district still needs to cut an extra $20 million for the 2027-28 school year. They expect to close schools next year. The referendum provides a financial lifeline for the district, which faced potential state intervention due to its dire financial situation.