Voters in Indianapolis face a key decision on November 3 that could reshape funding for the city’s charter schools and their partnership with the traditional district. A proposed $95 million property tax increase would mark the first time charter schools in the city receive direct funding from a shared tax, while also keeping the Indianapolis Public Schools’ budget stable at current levels.
The tax, a combined increase and extension of an existing levy set to expire at year-end, would roughly double the current district-only tax. Under the measure, the average homeowner would pay $221 annually, up from the current $115. IPS would receive $46.4 million for its 18,000 students, while approximately 60 charter schools would gain $48.6 million for their 18,850 students. This translates to nearly $2,600 per student for charters, funding improvements that could help the district avoid massive cuts, school closures, or potential state takeover.
A Partnership Under Threat
The funding shift threatens a longstanding collaboration between IPS and charter schools through the Innovation Network. Since 2014, that group of 30 schools—mostly charters—has depended on IPS to cover costs for building maintenance, busing, and technology services exceeding $20 million annually. Estimates from IPS’s annual state audit put these expenses as high as $60 million. The shared tax does not fully address its budget needs, leaving officials to consider ending these agreements or billing charters for services they previously received at no cost.
“The funding we have historically relied on to support… both our district-run and innovation charter schools is diminishing,” district CEO Aleesia Johnson said. “Put simply, the financial pie is getting smaller, and state law has cut it into many, many more pieces.” Johnson emphasized that the district is not seeking profit, but rather reimbursement for expenditures it currently covers on behalf of charter schools.
However, one school, Matchbook Learning’s charter elementary, revealed plans to charge it $1.67 million annually for busing and building use, a steep jump from the $25,000 it once paid. The district offered an alternative: assume all maintenance and utility costs for a nominal $1 fee. Charter advocacy groups the Mind Trust and the Indiana Charter Innovation Center expressed concern, stating they are “deeply disappointed” by the proposed changes and warning of potential disruption for students and families.
State Rep. Ed Delaney, an Indianapolis Democrat, has opposed the tax, arguing it perpetuates “lopsided benefits” for charters while IPS still faces substantial cuts regardless of the vote. The new Indianapolis Public Education Corporation, a charter-dominated board granted oversight by the state earlier this year, is urging passage. Johnson warned that failing to pass the measure could lead to further state intervention, citing past takeovers as outcomes that have not improved student results.
State House Education Committee Chairman Bob Behning, who authored the innovation school legislation, suggested the partnership model may no longer make sense once tax parity is achieved. He proposed a gradual shift beginning in 2028 to equalize funding, rather than the current immediate split. IPS, meanwhile, would need legislative approval to charge charter schools the true cost of services under state-capped fee structures.
IPS faces bureaucratic hurdles in implementing new fee structures, as state law caps what it can charge charter schools.
Stakeholder Reactions and Uncertain Outcomes
Sajan George of Matchbook Learning acknowledged IPS’s financial pressures but raised practical concerns about absorbing increased fees.
Charter advocacy groups remain worried about disruptions, emphasizing their commitment to minimizing student impacts during the transition. Meanwhile, IPEC’s oversight role in managing school assets positions it to potentially assume building operations, including maintenance responsibilities.
