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This November, Indianapolis voters will decide a question that’s make-or-break for the city’s public school district.
If the property tax referendum fails, it will likely mean deep cuts and state intervention at Indianapolis Public Schools. If it passes, $95 million annual revenue will be shared between IPS and many of the city’s charter schools.
This change is a result of new state laws that created the Indianapolis Public Education Corporation — which assumed IPS’ taxing powers — and require districts to share more property tax funding with charter schools. The referendum comes as more districts than ever are asking voters to approve tax increases to offset other changes in state law.
Leaders of both types of public schools say the referendum revenue is a critical source of funding for staff, programs, and transportation. The election holds particularly high stakes for IPS, which expects to make budget cuts in the next year even if the referendum passes, and could face state takeover if the referendum doesn’t pass.
But the laws that created IPEC and mandated sharing have been controversial. Critics of the referendum say it raises taxes without protecting district schools from cuts.
What does it mean for voters? Below is your guide of what to know before heading to the polls:
What is the referendum?
Generally, a referendum is a property tax increase that local voters approve to support schools.
The Indianapolis Public Education Corporation is asking for an operating referendum expected to generate around $95 million in annual revenue for staff and programming.
Why is IPEC asking for a referendum?
First, the district’s 2018 referendum expires this year. For IPS, this is a critical source of revenue that pays for staff and programs.
Other key state laws also affect the district’s financial picture.
In 2025, the state made sweeping changes to property taxes, limiting the future property tax revenue that districts could expect to raise.
Lawmakers also limited referendums to the general elections, when turnout is higher and referendums are less likely to pass. The time constraint is one reason there are more referendums this year than in years past, as districts whose referendums are set to expire in 2027 seek renewals.
One of the biggest sources of financial strain at the district is the cost of special education services, which the district is required by federal law to provide. Officials have estimated that the district has incurred a $24 million deficit from special education costs.
What will the money be used for?
Around $63 million of the funds will be used for programming, including programming for students with disabilities and those learning English, according to the spending plan submitted by IPEC.
The remaining $32 million will be used for staff retention and professional development.
IPEC is planning to launch a spending tracker for the money.
How much will it cost homeowners?
The referendum will cost homeowners 37 cents per $100 of the home’s assessed value. The ballot language approved by IPEC estimates that voters would pay around $221 more on their annual tax bill for a $150,000 home.
The referendum will last four years rather than the typical eight. The IPEC board decided that was enough time to stabilize the district’s finances and allow IPEC to begin operating a transportation system for the city, as well as a buildings plan.
Officials have also pointed out out that the language on the ballot — which is prescribed by state law — does not clearly articulate to taxpayers that their annual increase is likely to be less than $221. The statutory language does not take into account the rate that taxpayers are already paying that was imposed by IPS’ 2018 referendum.
According to a calculator on the district’s website, taking into account the 2018 referendum means an increase of around $100 for a typical homeowner in 2027.
What does the ballot language look like?
“Shall the Indianapolis Public Education Corporation increase property taxes paid to the Indianapolis Public Schools (“IPS”) and participating charter schools for no more than four (4) years for the purpose of funding teacher and staff retention, professional development, and advancing academic programs and opportunities by imposing a property tax rate that does not exceed $0.372 per $100 of assessed value and results in a maximum annual amount that does not exceed $95,000,000? If this operating referendum public question is approved by the voters, for a median residence of $150,000, the property’s annual property tax bill would increase by $221 per year.”
Is there a referendum right now?
IPS voters approved a referendum in 2018 and have been paying that rate of 19.6 cents per $100 of assessed property value ever since. That’s about $116 per year on an average $150,000 house.
The 2018 referendum expires this year and would be replaced by the 2026 referendum, if approved. The 2018 referendum raised $27.5 million annually for IPS, which the district shared a portion of with charter schools.
Who is asking for a referendum?
IPEC is an appointed board created this year by a new state law. It was given taxing powers, as well as oversight of buildings, buses, and accountability for IPS and Indianapolis charter schools.
The Yes for Indianapolis Public Education Campaign is campaigning for the referendum’s success. The campaign is funded privately and will be co-chaired by:
- Diane Arnold, former IPS board president
- Marianne Glick, chair of the Glick Foundation’s Board of Directors
- Bart Peterson, former mayor of Indianapolis
- William Shrewsberry, former deputy mayor of Indianapolis
- Morgan Snyder, an IPS parent
The campaign also includes 10 advisory committee members who represent community groups around the city or have a connection to Indianapolis schools.
The Indianapolis Education Association voted against supporting the referendum because it would still require IPS to make cuts. The group has appealed to Indianapolis Mayor Joe Hogsett for a reallocation of the referendum revenue to keep IPS whole.
Which schools will get the referendum money?
The referendum revenue will be split between IPS and around 60 charter schools that enroll IPS students and have opted to participate.
IPS voluntarily shared referendum revenue with some charter schools before a 2023 law that mandated that districts in certain counties — including Marion — share operating referendum revenue.
Around half the revenue will go to IPS. The other half will be split among the charter schools based on the number of students that they enroll whose residence is within IPS boundaries, a formula specified in state law.
What happens if it passes?
IPS still expects to make around $20 million in cuts even if the referendum passes, which is on top of $24 million in cuts already made.
But Superintendent Aleesia Johnson said the referendum revenue would protect the district from drastic cuts and state intervention.
“It is absolutely necessary for our district’s financial survival,” Johnson said at a kickoff event for the referendum campaign.
The revenue will be spent largely on staff salaries and retention. A portion will also be spent on programming, especially for students with disabilities and those who are learning English.
At some charter schools, the funding will also support transportation — something charter advocates have long advocated for. But in other charter schools, it’s not publicly clear how the money will be spent.
What happens if it fails?
Without referendum revenue, IPS expects to need to make drastic cuts of around $40 to $45 million, leading to staffing freezes and program closures, and the possibility of state takeover, in which appointed managers would handle the district’s finances.
The failure of the referendum would have less of an impact on charter schools, which currently receive only a limited amount of property tax funds, and rely primarily on state tuition support and other grants earmarked for charter schools.
Where do I find out more?
Chalkbeat’s previous coverage includes stories about the IPEC meeting where the referendum was approved, support and opposition to the referendum, and how charter schools plan to spend their share of referendum revenue.
Community forums, such as this one from the African American Coalition of Indianapolis, have also featured IPS, IPEC, and charter school leaders discussing the referendum.
Both IPS and the Yes for Indianapolis Public Education campaign have information on their websites about the referendum.
Who can vote for the referendum and when?
Voters in Indianapolis Public Schools boundaries can vote on the referendum. Find your polling place here.
Election Day is Nov. 3, and early voting is available at the Indianapolis City-County building from Oct. 6 to Nov. 2.
Voter registration information can be found at the Secretary of State’s website. Voters must register by Oct. 5, to vote in November.
Aleksandra Appleton covers Indiana education policy and writes about K-12 schools across the state. Contact her at aappleton@chalkbeat.org.
