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The Indianapolis Public Education Corporation would not have the direct authority to close public schools, and charters could keep control of their school buildings, according to a bill amendment lawmakers approved Thursday.
Under the amendment to House Bill 1423, charter authorizers and Indianapolis Public Schools — not the proposed Indianapolis Public Education Corporation — would maintain the power to close schools. But if they fail to do so, the corporation could appeal to the state board of education to close the school. The state board would ultimately have to approve the school closure.
In addition, the amendment — introduced by Rep. Bob Behning, the Republican chair of the House Education Committee — would allow charters within IPS boundaries to opt into or out of a facility management plan overseen by the new corporation.
The proposed changes to how school closures work and who controls buildings is part of a broader plan to change key aspects of how public schools work in the city and shift some resources from IPS to charter schools.
The amended bill clarifies that both charter authorizers and IPS must agree on a universal performance framework that could be used to determine which schools must close. IPS has closed several school buildings in recent years, while a large share of charters have shut down over the last few decades.
The revised bill says IPS would still be required to cede authority over their school buildings to the corporation, and also give up power over transportation and the ability to collect and levy property taxes, to the Indianapolis Public Education Corporation, or IPEC. But Behning said during House discussions Thursday that he would commit to allowing IPS to opt out of the mandate to give up control over its buildings.
Such a move could further reduce the proposed corporation’s ability to unify oversight of key aspects of how the city’s public schools work.
Shortly after that comment from Behning, IPS released a statement blasting how the revised bill created a carve-out for charters. The district said it created “a glaring double standard” because it would grant “charter schools the power to opt out of management and control of school property by the Indianapolis Public Education Corporation Board while denying that very same flexibility to IPS.”
Before the House discussions, Behning said his amendment came in response to concern from charter schools that paid for their buildings with private dollars. Since charters have not historically had access to property tax funding for such expenses, they have relied on other funding resources to acquire facilities.
But there would be significant consequences for charter schools that choose not to participate in facilities management, like losing capital referendum and debt service funding, and the charter school facility grant once charter schools have access to more resources, Behning said during discussions with other House lawmakers.
“If I’m a charter … I would have to figure out how I’m going to do all my operations, pay for everything out of those operating dollars, which they have never had to do,” Behning said. “I don’t really think any of them are going to do it.”
Within district borders, over 20 charter schools owned their buildings in the 2024-25 school year, while another 19 leased space and 12 operated in IPS buildings as part of the school’s Innovation Network, according to a report from the Mayor’s Office of Education Innovation.
The amendment allows charters that lease or own their buildings to decide whether to give control of the facility to IPEC. But if charters do opt out, they would not receive property tax dollars for capital needs.
During Thursday’s House discussion of the bill, Behning said his amendment didn’t outline how charter schools with privately owned buildings, or even IPS with outstanding bonds, would participate in facilities management. That’s a task for IPEC to determine in its feasibility study before assuming control of buildings in 2028-29, he said. The bill directs the new corporation to complete that study to examine building management by Nov. 30, 2027.
“If I was a charter that had privately built a building with private dollars, not with public dollars, if I want to be part of this, that’s going to be something they’re going to have to figure out,” Behning said. “My guess is, you can’t just come in and take away a private asset.”
Charters that own their buildings but are then forced to close could dispose of the building as they see fit if they don’t opt in to the corporation’s facility management plan, according to Behning. The corporation would not assume control of the building.
In theory, the new corporation would ultimately own all district buildings, Behning said. But there could be legal challenges to transferring ownership of buildings with remaining debt attached to them.
HB 1423 is eligible for a final reading in the House on Monday. If passed, it would move on to the Senate.
This story has been updated to include additional comments from Rep. Bob Behning and IPS, as well as the outcome of votes on Behning’s amendment.
Reporter Aleksandra Appleton contributed to this story.
Amelia Pak-Harvey covers Indianapolis and Lawrence Township schools for Chalkbeat Indiana. Contact Amelia at apak-harvey@chalkbeat.org.
