Indianapolis Public Schools announces $17 million in central office cuts for 2026-27

A group of people stand in a large room with an illuminated sign that reads "My IPS."
Committee and community members gather after the Indianapolis Public Schools board meeting in January 2025. (Lee Klafczynski for Chalkbeat)

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Indianapolis Public Schools announced $17 million in cuts to central office for next school year as the district grapples with a looming financial shortfall exacerbated by declining enrollment and changes to state law that will restrict property tax revenue.

The cuts, announced by Superintendent Aleesia Johnson on Monday, are in addition to the $7 million in school-based budget cuts the district announced in March. Those previous school-based reductions ultimately cut 36 teachers and 23 classified staff, while newly announced cuts to central office eliminated roughly 28 positions, Johnson said in a video.

In total, the positions represent roughly 2% of the district’s overall workforce of 3,709 employees.

“This is the hardest part, because these cuts represent people,” Johnson said. “Our teammates and our colleagues who have dedicated their work to serving our district and our students.”

The cuts come as IPS faces a broader existential challenge. Property tax reform lawmakers passed last year is expected to bring a loss of millions in property tax revenues to IPS and districts across the state. State lawmakers also created a new appointed body that will assume key financial powers previously reserved for the elected IPS school board.

The new nine-member Indianapolis Public Education Corporation board, appointed by the mayor, must tackle key resource questions to place district and charter schools on an even playing field. The board will have the power to set property tax rates for residents in IPS, as charter schools gradually receive more property taxes for operating expenses. The board will also take control of IPS buildings and transportation for the benefit of both district and charter schools.

But perhaps IPEC’s most pressing task is to decide whether or not to put a property tax increase to voters that could keep the district afloat.

Johnson said in Monday’s announcement that the reductions are a “proactive step in our advocacy” to IPEC board members.

“As we move toward a referendum, it is vital that we demonstrate to those decision makers — as well as to our broader community — that we’re committed to responsible and deliberate fiscal discipline,” Johnson said. “We want to ensure that what we ask of our taxpayers is balanced by clear evidence that we are tightening our own belt and managing our financial reality with integrity.”

Cuts include reductions in extracurricular buses, athletics

The central office cuts announced Monday include reductions in vendor contracts.

Johnson said that athletic offerings will remain intact, but the district will change how some athletics are offered in elementary and middle schools.

“This includes a shift toward elementary-level clinics and expanding our partnerships with community athletic organizations at the middle school level to ensure high-quality coaching instruction and continuity,” Johnson said.

The district will also no longer offer buses for extracurricular activities on Friday afternoons — including transportation to practices and tutoring.

But the district said in a statement that it will continue offering transportation to games and competitions that occur on Fridays. The district said cuts will not impact the number of extracurricular and internship opportunities for students.

Johnson also announced an increase in pre-K prices for next school year, citing the state’s “lack of educational funding for our youngest children.”

The pre-K tuition increase comes as the district reduces its number of pre-K sites by six. IPS began charging for pre-K this school year after the state cut preschool funding.

“For more than a decade, we’ve worked to operate efficiently — closing and consolidating buildings, reducing costs, improving how we provide goods and services, streamlining transportation and central office functions,” Johnson said. “Taken together, these decisions reflect a broader effort to examine everything we do and ensure every dollar is aligned to what matters the most: our students.”

Amelia Pak-Harvey covers Indianapolis and Lawrence Township schools for Chalkbeat Indiana. Contact Amelia at apak-harvey@chalkbeat.org.

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