Indianapolis voters backed a property tax hike designed to raise roughly $95 million, which will be shared by Indianapolis Public Schools and approximately 60 charter schools across the municipality.
The ballot measure passed with about 63% voter approval. For the district, the outcome acts as a crucial lifeline. Without the revenue, Indianapolis Public Schools faced potential state intervention due to its dire financial situation.
This vote marks a historic shift in the city, where roughly 40% of students living within IPS borders attend charter schools. It is the first time charter schools enrolling IPS students will receive a proportional share of referendum funding. State lawmakers created the mayor-appointed Indianapolis Public Education Corporation (IPEC) to manage property tax levies, buildings, and transportation for both IPS and charters alike.
Approved Property Tax Rate Raises Homeowner Costs
The approved referendum adds 37.2 cents per $100 of assessed value. This rate replaces an expiring tax rate that voters approved for IPS in 2018.
District calculations estimate that the tax change will cause an annual increase of roughly $105 for a home valued at $150,000, based on the district’s online tax liability calculator.
Some advocates for traditional public schools also argued against the ability for charter schools to receive referendum funding.
Allocation of the $95 Million Fund
The $95 million over each of the next four years will be split between the two public school sectors based on student enrollment numbers.
Charter schools—which operate as free public schools managed by nonprofit boards rather than elected officials—are estimated to receive about $48.6 million annually. Meanwhile, Indianapolis Public Schools will receive $46.4 million. District and IPEC officials say the money will be spent on teaching staff, academic programs, and other operational expenses.
Hannah Thomas, a spokesperson for the Vote Yes for Indianapolis Public Education campaign, pointed out the practical stakes of the campaign’s success in a public statement.
“This investment directs resources to the classroom. 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.”
Marion County Districts Pass Taxes Amid Budget Cuts
The outcome in Indianapolis mirrored 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. Conversely, Decatur Township voters rejected their school referendum, with about 54% of voters against it.
Despite the influx of referendum revenue, financial pressures persist within the main district. Representatives for IPS note that an additional $20 million in cuts will still be required for the 2027-28 period, alongside anticipated school shutdowns next year.
