What different potential tax increases would mean for Indianapolis schools and homeowners

“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. How much money should Indianapolis schools ask taxpayers for this November? That’s one of the questions facing the new Indianapolis Public Education Corporation , and IPEC is having two public listening sessions to share information and gather feedback. 6-8 p.m., Thursday, June 4, in the media center of Arsenal Technical High School. Noon to 2 p.m. Wednesday, June 10, at a location to be determined, likely in the northwest part of the area served by Indianapolis Public Schools. IPEC members are expected to decide at their June 22 meeting if they want to ask voters to approve a tax increase known as a referendum. These local property tax increases are for specific needs and last for a limited period of time, unlike annual property taxes that fund schools and other services. Here’s what to know about the options that IPEC is weighing: What is the current referendum rate? Voters approved an operating referendum for Indianapolis Public Schools in 2018. The current rate is 19 cents per $100 of assessed value, and the annual revenue to the district is about $49 million. Charter schools that are part of the IPS Innovation Network receive some of that funding, but independent charters do not. How is the process for this referendum different? There have been multiple changes since 2018. The power to put a tax measure on the ballot went from the elected IPS board to the mayor-appointed IPEC. And all charter schools that enroll students living within the borders of the IPS district can opt into receiving money from the tax measure. Officials at the May IPEC meeting said the charter school change means the number of students supported by referendum funds would essentially double and said the rate of 38 cents per $100 of assessed value is essentially parity in terms of funding to the 2018 tax measure. What are the rate options? At the May IPEC meeting, presenters suggested rates from 19 to 55 cents . IPEC can also decide not to seek a referendum, or pick a rate not presented. Depending on the rate, IPS might have to make cuts in addition to the ones previously announced that could include school closures and consolidations, ending Innovation Network agreements, and cuts to instructional programs, transportation, or staffing. Lower rates could also put IPS at risk of a state takeover and lead to families and employees leaving schools, while higher rates would provide stability during a transition period, IPS Superintendent Aleesia Johnson told IPEC. Johnson said 27,000 students, including those at district schools and some charter schools, rely on IPS services that could be affected. Below is a look at the various rates and their impact on schools, based on presentations to IPEC by Johnson and Andy Seibert, CEO of TogetherEd , as well as Susan Preble, the Indy Chamber’s vice president of state government affairs. The cost to taxpayers is the cost instead of the current referendum cost, not in addition to it. What else does IPEC need to decide for the tax measure? If it opts for a referendum, IPEC will also need to decide how long the tax measure should last and what the money should be used for. Typically, referendums are eight years, but Johnson and Seibert recommended four years to IPEC. The funding would help with services for students with disabilities and English language learners; teacher and staff retention and compensation; student opportunities including work-based learning, postsecondary pathways; and maintaining current instructional models across schools, according to Johnson and Seibert’s presentation. It’s possible state lawmakers could increase funding for students with disabilities and English language learners, but that won’t be determined until after the vote on the tax increase. IPEC’s next meeting is 5 p.m. on Monday, June 22, in Room 221 of the Indianapolis City-County Building. MJ Slaby oversees Chalkbeat Indiana’s coverage as bureau chief. Contact MJ at mslaby@chalkbeat.org .

Summary generated from the RSS feed of Chalkbeat. All article rights belong to the original publisher. Click through to read the full piece on www.chalkbeat.org.