IPS faces $20 million deficit

Indianapolis Public Schools will announce new school closures later this November. The district is taking these steps to cover a $20 million deficit for the coming school year. This financial gap persists even after voters approved a major tax measure.

Voters supported a $95 million referendum for both IPS and charter schools on Tuesday. The measure passed with 63% of the vote. Superintendent Aleesia Johnson thanked voters in a video released Wednesday. She stated that the referendum helps keep decisions about the future of schools within Indianapolis. However, she noted that the immediate economic challenges require school consolidations. The district also plans to change partnership agreements with charter schools. Johnson said, "While this referendum does not solve every financial challenge or difficult decision we face, it does help keep decisions about the future of our schools where they belong: right here in IPS and in Indianapolis with the families and communities we serve."

The district estimates that closing a single school saves $500,000. This follows a similar move in 2023. That earlier round of closures resulted in six buildings shutting down. Those buildings had low utilization rates or poor physical conditions. A facility study had examined their quality and enrollment capacity before the 2023 decisions.

Enrollment data from the state shows a drop in student numbers. IPS enrollment fell by 8% compared to the previous school year. These preliminary figures will likely shape which specific schools are selected for closure. The district is also reexamining its agreements with charter operators in its Innovation Network. This network consists of autonomous schools. IPS may begin charging these schools for services previously provided at no cost. Transportation is one such service. The acting executive director of the Indianapolis Public Education Corporation estimated these services at around $12 million in June. It is unclear how much money the new fees will save the district.

Johnson added that the district is working to share these recommendations immediately. This timing allows families to make decisions as enrollment begins. She said, "We are working to share these recommendations and act now so that as enrollment gets underway and families make decisions, they can do so equipped with the most up-to-date information." IPS has also announced plans to push state lawmakers for more funding. This request targets students with disabilities and English language learners during the 2027 state legislative session.

The enrollment window for IPS schools and city charter schools opens on Nov. 5. The district’s next regular board meeting is scheduled for Nov. 19 at 6 p.m.