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A much-anticipated proposal that would give the Indianapolis mayor more power over schools while reducing the power of the existing elected school board has been filed in the statehouse. The bill marks the next step toward a fundamental shift in how Indianapolis Public Schools and charter schools operate, and could go into effect in just a few months.
HB 1423 largely falls in line with the recommendations of the Indianapolis Local Education Alliance and would create an Indianapolis Public Education Corporation made of nine board members appointed by the mayor. The new body would have the authority to control and manage school property, as well as to establish and oversee a transportation plan to transport all students within Indianapolis Public Schools boundaries — the two primary goals lawmakers had for the work of the Indianapolis Local Education Alliance.
The Indianapolis mayor would need to appoint members to the corporation body by June 1, 2026.
The bill would require all schools within district boundaries — district and charter — to offer transportation. Currently, fewer than half of independent charter schools offer bus services, while roughly half of charters in the IPS Innovation Network use IPS bus services, according to a report from the mayor’s Office of Education Innovation.
In a significant shift of power, the district would lose its authority to levy and collect property taxes or issue debt, powers that would instead go to the new corporation. The legislation tasks the corporation with developing a formula by which to distribute property tax funds to schools.
The bill does not, however, mention the need for additional special education funding — a recommendation from the ILEA that does not appear to have been adopted.
The legislation comes after months of heated public meetings during which parents, students, school leaders, and community members debated the future of schools in Indianapolis. Supporters of IPS decried efforts to take power from the elected school board, voicing concern over publicly funded, privately run charter schools. Charter school supporters, meanwhile, pushed back against any attempts to limit charter school growth and advocated for more student transportation options.
The bill will be heard on Monday at 9:30 a.m. in the House Education Committee, according to committee chair and bill author Rep. Bob Behning of Indianapolis. If it passes the committee, it will head to a vote in the full House, then the Senate.
Bill limits charter authorizers, requires closure of low-performing schools
The legislation would also limit charter authorizing within IPS boundaries to the mayor’s office, the Indiana Charter School Board, and the IPS school board, which has expressed interest in becoming an authorizer. Schools overseen by other authorizers would be able to remain with those authorizers until the end of their charter term.
The corporation board would be composed of three charter school leaders, three IPS commissioners, and three other members who have expertise in capital planning, facilities, transportation, or logistics or experience working with vulnerable student populations, as recommended by the ILEA. Each member’s term would be four years, though they would be eligible for reappointment.
Under the proposal, the new body would establish and manage a unified enrollment system, as well as a single school performance framework.
The school rating system must be based on academic performance and assessments, student discipline, enrollment, condition of school property, and the health of the school’s finances, organization, and governance. The framework must also close chronically low-performing schools.
School boards would still be responsible for running day-to-day operations of district and charter schools, retaining the power to hire and fire employees or create their own school budgets.
Bill sets deadlines for transfer of financial responsibilities
The bill would ultimately shift financial responsibility of taxes and bonds from the IPS school board to the corporation.
The corporation would assume the power to seek voter-approved tax increases for operating or capital expenses in April. That’s when the corporation would also become liable for all the outstanding debt of the district — typically used for larger expenses such as building maintenance or construction projects — which would no longer be able to issue bonds for debt.
However, the existing operating and capital referendum funds, approved by voters in IPS in 2018 and 2023, respectively, would still go to IPS to cover costs that voters specifically approved at the ballot.
The bill also exempts IPS from a state law requiring school districts to give unused or underutilized school buildings to charter schools for the sale or lease price of $1.
The bill could still see significant amendments during the 2026 session. Behning previously expressed skepticism about giving the Indianapolis mayor authority to appoint all nine members of the body. He did not immediately respond to a question from Chalkbeat Thursday.
Following the bill’s filing on Thursday, Mayor Joe Hogsett’s office declined to comment beyond a previously published op-ed by the mayor in the Indianapolis Star. In it, Hogsett, who chaired the ILEA, expressed support for the groups’ recommendations and asked for “our local voices to remain at the forefront” of the conversation at the statehouse.
Scott Bess of the Indiana Charter Innovation Center, which advocates for charters around the state and in Indianapolis, said the group is generally supportive of the bill, but raised concerns about limiting charter authorizers and requiring schools to offer transportation.
IPS said in a statement that the district was still analyzing the bill language.
This story was updated to include more background information and responses from Mayor Joe Hogsett’s office, the Indiana Charter Innovation Center, and Indianapolis Public Schools.
Amelia Pak-Harvey covers Indianapolis and Lawrence Township schools for Chalkbeat Indiana. Contact Amelia at apak-harvey@chalkbeat.org.
Aleksandra Appleton covers Indiana education policy and writes about K-12 schools across the state. Contact her at aappleton@chalkbeat.org.
