From 19 to 55 cents: IPEC hears options for a possible tax increase

“Sign up for Chalkbeat Indiana’s free daily newsletter to keep up with Indianapolis Public Schools, Marion County’s township districts, and statewide education news. Changes are coming to Indianapolis schools, but how many and which ones depend on a potential tax increase and if it passes, speakers told the Indianapolis Public Education Corporation on Thursday. The mayor-appointed IPEC board was created by state lawmakers earlier this year to oversee key aspects of district and charter schools in the city, including transportation, buildings, school accountability, and some finances. It lessened the powers of city school boards, including the elected Indianapolis Public Schools board. One of the first things that IPEC will decide is whether or not to put a tax increase, or referendum, on the ballot in November, something previously decided by the IPS school board. Tuesday’s meeting, IPEC’s second, largely centered on the possibility of the ballot measure and also included electing officers and updates about the corporation’s accountability framework for schools. IPEC members listened to a presentation from IPS Superintendent Aleesia Johnson and Andy Seibert, CEO of TogetherEd , and one from Susan Preble, the Indy Chamber’s vice president of state government affairs. A vote on the tax measure is expected at the corporation’s June 22 meeting ahead of a July 22 deadline for the ballot question to be sent to the state Department of Local Government Finance. Speakers during public comment expressed support for IPEC and the need for equitable transportation, as well as the need for the referendum to focus on students, equity in schools, and voter transparency. Referendum possibilities for Indianapolis schools School districts, and in this case IPEC, can ask voters to approve tax increases for specific needs such as operating costs, construction, or safety measures. These dollars are in addition to the local property tax dollars that schools receive along with state and federal funding. IPS last passed an operating referendum in 2018. Charter schools that are part of the IPS Innovation Network currently receive some referendum funding, but independent charters do not. Since then, state lawmakers made a change that also allows charter schools that enroll students living within the borders of the IPS district to opt into receiving money from the tax measure. This year is a key one for the future of IPS, as the current operating referendum is expiring and the district faces a budget deficit. Presenters to IPEC laid out options from no referendum to tax measures at the current rate of 19 cents per $100 of assessed value up to 55 cents. Estimated impact on homeowners could range from $169 annually if the current rate is renewed to $475 at 55 cents. Johnson said the lower amounts could lead to a state takeover of the district as well as more widespread changes for students such as school closures, ending Innovation Network agreements, and cuts to programs, transportation, or staff. She stressed that the vote outcome will determine the level of stability or disruption for students and families. While the current referendum was for the typical eight years, Johnson and Seibert said they support four years for the next one. They said that is long enough for long-term planning and resource stability as things change with the addition of IPEC. Funding would help with services for students with disabilities and English language learners as well as teacher and staff retention and student opportunities around work-based learning and postsecondary pathways. Preble said the popularity of referendums across the state reflects that “we are not funding public education in an adequate way.” She said she believes state leaders know this, especially when it comes to students with disabilities and ELL students, and could address it in the upcoming legislative session, but that wouldn’t start until after the referendum vote. IPEC members asked presenters for additional data around costs, referendum funds and enrollment. They also asked questions about funding for Pre-K while acknowledging there wasn’t enough time to include it in this referendum. IPEC approves posting for executive director, discusses accountability IPEC also made several personnel decisions: It staggered terms for board members, and corporation officers and approved a job posting for an executive director. The job will be posted Friday on the IPEC website and the Indianapolis City-County Council’s job board . The salary range is $235,000 to $325,000 annually. Deandra Thompson was elected as the vice chairperson, and Patricia Castañeda as the secretary in unanimous votes. Board terms were also announced, per state law: Hope Duke Star, Dexter Taylor, and Eddie Rangel each have a two-year term. Ashley Thomas, Janet McNeal, and John R. Hammond III each have a three-year term. Thompson, chair David Harris, and Castañeda each have a four-year term. IPEC members also heard updates around the accountability framework. Priorities are to gather more feedback from the community and IPEC members, O’Connor said. A progress report is due to state lawmakers on Aug. 1. Presentations from Tuesday’s meeting will be posted on the IPEC website. The corporation’s next meeting is 5 p.m. June 22 in room 221 of the Indianapolis City-County Building, 200 E. Washington St. IPEC’s July meeting was changed to July 22. MJ Slaby oversees Chalkbeat Indiana’s coverage as bureau chief. Contact MJ at mslaby@chalkbeat.org .

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