IPS referendum

Indianapolis Public Schools will likely ask taxpayers for $936 million for teacher pay, construction

PHOTO: Dylan Peers McCoy
Lewis Ferebee

Indianapolis Public Schools announced plans Thursday to ask voters for $736 million to increase operating funds and $200 million for construction and building projects, to be collected over the next eight years.

A district spokeswoman declined to provide Chalkbeat with more information. But details were published on the district website. If approved by the school board next month, the request would be placed on the 2018 primary ballot on May 8.

School board president Mary Ann Sullivan said that this shouldn’t be surprising to voters given recent changes to school funding.

“This is now the new normal. The new normal is districts will be coming to taxpayers every so often so they can continue operating public schools,” she said.

The district’s website says that the operating funds, $92 million per year for eight years, would be used to raise teacher pay and special needs services. The construction funds would pay to upgrade buildings and make safety improvements.

The school board is planning two public hearings for 6 p.m. Dec. 12 and 14 at the central office building, 120 E. Walnut St. There will be opportunities for public comment if people sign up by noon on the day before each hearing. The board is expected to make a decision about whether to pursue the referendums at the second hearing.

Seeking extra taxpayer dollars would likely lead to a contentious battle, as Indianapolis voters would see their tax bills increase. Between the two tax increases, a family with a home at the district’s median value — $123,500 — would be looking at paying about $28.45 more per month in property taxes.

The calculation relies on assessed property value, so the tax increase would vary for each homeowner within district boundaries. The operating increase would raise taxes by up to $0.59 for every $100 of assessed property value, while the construction increase would raise taxes by up to $0.12 per $100 of assessed property value.

Hoosier schools have almost exclusively relied on state funding in recent years. State lawmakers capped how much local governments could collect in property taxes in 2010, and those funds can now only go toward things like construction or transportation — not salaries. But voters can decide to override those caps in their communities. In Marion County, seven districts have asked voters to raise taxes to pay for schools, and all but one were successful.

But it could prove especially difficult for IPS to win support for the tax increase. Households in IPS boundaries are less likely to have children than households across Indiana, according to Census data. And many district residents with school-age children choose private, charter and township schools outside the district.

District leaders have been laying the groundwork to ask for more funding for months. In February, Ferebee told Chalkbeat that the district would need to ask for more funding from taxpayers because of low state funding.

At the time, IPS board member Kelly Bentley said closing some high schools was one way district leaders could show voters that they were “good stewards” of their funding. In order to continue raising teacher pay and serve high-need students, the district needs more money, she said.

The district’s website said that if the tax increases don’t pass, salaries could be frozen, and transportation services and services for students with disabilities could decrease.

CORRECTION: An earlier version of this story incorrectly identified the amount of money the district hopes to raise for operating funds, and the total amount of both referendums. For operating funds, it would be $92 million per year for eight years, totaling $736 million. Including the capital referendum for $200 million, the district would be seeking $936 million.

IPS referendum

Ferebee, pleading for more money for schools, says teacher raises, security upgrades are on the ballot

PHOTO: Dylan Peers McCoy
Nathan Harris, who graduated from Arsenal Technical High School, thinks the schools need more funding to serve students from low-income families.

At a quiet meeting held Wednesday in a near northside church, Superintendent Lewis Ferebee made his case: Indianapolis Public Schools needs more money from local taxpayers.

At stake when voters go to the polls in November: The ability of the state’s largest district to foot the cost of raises for teachers and school security improvements, among other expenditures officials deem necessary. There are two property tax hikes on the ballot this year to increase school funding.

Ferebee told the few dozen people who came to the meeting — parents, alumni, district staffers, among them — that, with adequate funding, he envisioned offering the best teacher pay in the state and attracting some of the most talented educators.

“I think every parent in this room would appreciate that,” he said. “We have to be competitive with teachers’ … compensation.”

The superintendent presented a broad outline of the district’s financial woes, but there was not much new information. He devoted most of the meeting to answering questions from those in attendance, who were alternately supportive and skeptical of the referendums.

Reggie Jones, a member of the Indianapolis NAACP education committee, said that while he supports the ballot initiatives, he also wants to know more about how the money will be spent.

Janise Hamiter, a district bus attendant, expressed concern that some of the money raised will be used to make improvements at buildings that are occupied by charter schools in the district innovation network.

“Private money is going to be used for charter schools. Public money is going to be used for charter schools,” she said. “They are getting both ends of the stick if you ask me.”

She said she hasn’t yet decided which way she’ll vote.

One of the proposed referendums would raise about $52 million to pay for improvements to school buildings, particularly safety features such as new lights, classroom locks, and fire sprinklers. The board voted earlier this month to add that request to the ballot.

The second measure, which is likely to generate significantly more funds, would pay for operating expenses such as teacher pay. Details of that proposal are expected in the coming weeks. The board will hold a July 17 hearing on the measure.

The community meeting was notable because this is the district’s second time this year campaigning for more money from taxpayers, and the success of the referendums could hinge on whether Ferebee makes a strong case to voters. Last year, the district announced plans to seek nearly $1 billion in two referendums that were to be on the ballot in May. But community groups, notably the MIBOR Realtor Association, balked at the size of the request and criticized the district for not providing enough details.

Eventually, the school board chose to delay the vote and work with the Indy Chamber to craft a less costly version. The latest proposal for building improvements comes in at about one-quarter of the district’s initial request.

Nathan Harris, who graduated from Arsenal Technical High School but no longer lives in the district, said he supports increasing school funding because he’s familiar with the needs of Indianapolis schools. When so many students come from low-income families, Harris said, “more resources are required.”

IPS referendum

Indianapolis Public Schools offers buyouts to up to 150 teachers

PHOTO: Tajuana Cheshier/Chalkbeat TN
Indianapolis Public Schools is offering $20,000 buyouts to teachers who retire.

Indianapolis Public Schools is offering teachers $20,000 payments to retire, in a move that could cut costs amid a severe deficit.

Nearly 250 educators are eligible for the buyout, which would be contributed directly to retirement plans for teachers who take the offer, according to the district.

District officials say the offer is not a cost-cutting move but rather an effort to enhance the district’s ability to set its budget for next year and plan for its hiring needs. In a written response to questions, head of human resources Mindy Schlegel wrote the offer “is not a buyout, but an early notice incentive.”

“The district is focused on incentivizing early notice of planned retirements so we can apply those notices to budgeting and staffing work principals are doing now versus addressing those challenges in June,” she wrote. “Knowing staffing shifts early is one of the most critical levers they can use in planning for next year.”

Teachers have 11 days to make their decision. They must notify the administration by 5 p.m. on April 20 if they want to take the buyout, according to the district. The district apparently could back out of the deal, though — officials have until May 4 to decide whether to go forward with the program.

A minimum of 100 and a maximum of 150 educators would have to accept the offer for the district to go through with it. If 150 teachers accept the $20,000, the payouts could cost the district as much as $3 million. The district could ultimately save money even if it replaces retired teachers, because veteran teachers are paid more.

When asked how much the offer could save the district in the long run, Schlegel said the payments are “not really about cost savings.”

School board member Mary Ann Sullivan said the offer has a number of benefits. It could help the district get a clearer picture of its staff and finances at a time when it is facing a severe budget shortfall. But it could also help the district avoid laying off teachers, she said.

“If you can manage to not do that — avoid that situation — most people would think that’s a good goal,” she said.

To take advantage of the deal, teachers need to be eligible for regular retirement under the rules of the Indiana Public Retirement System. Teachers as young as 55 years old could be eligible if they have at least 30 years of service. Older teachers would be eligible with fewer years of service. Teachers would need to retire at the end of the 2017-18 school year.

The retirement plan administrator, VALIC, will host a session 4:30 to 6 p.m. Thursday in the boardroom of the Education Services Center, according to an email sent to teachers and obtained by Chalkbeat.

“I hate to lose teachers,” said Rhondalyn Cornett, president of the Indianapolis Education Association. But the offer could be desirable for teachers who were trying to decide whether they can afford to retire, she said. “It’s a good opportunity because I do know there are some teachers who are going to want it.”

Some teachers were already considering retirement because they were displaced during the high school closing process, Cornett said.

The incentive for higher-paid teachers to retire comes at the same time as the district is considering ways to cut costs after withdrawing a request for more funding from taxpayers. Superintendent Lewis Ferebee has told RTV6 the district might also freeze hiring and furlough administrators. Last week, Schlegel told Chalkbeat the district had not yet decided whether teachers might be laid off.

In her email about retirement incentives, Schlegel wrote she did not anticipate the plan would affect class size. Whether the district replaces teachers will depend on the subjects they teach, she wrote.

The district has been grappling with budget deficits for years, but the issue has become more severe in recent months. District leaders say the budget crunch is caused by declining state and federal funding as well as the high cost of operating expenses such as raises for teachers.

In November, the administration released a plan to appeal to voters to increase property taxes and school funding. But following a rocky rollout and campaign, district leaders first reduced their request and then withdrew the referendum. They are currently working with the Indy Chamber to review finances and craft a request that would appear on the November ballot.