Indianapolis Public Schools Faces Crucial $90 Million Operating Referendum Vote in 2026

Background: A Community at a Crossroads

The 2026 Operating Referendum marks a pivotal moment for Indianapolis education. The 2018 operating referendum that has sustained IPS for eight years expires at the end of December 2026. Without a new source of funding, the district faces a financial cliff.

#### The IPEC Factor

The Indianapolis Public Education Corporation (IPEC) was created by state lawmakers in 2025 to centralize oversight of all schools within the IPS boundary, including traditional district schools, innovation schools, and public charter schools. This nine-member board, appointed by the mayor, now holds the authority to run referendums — power that previously belonged to the elected IPS board.

This shift has generated controversy. Multiple speakers at the June 22 IPEC meeting expressed frustration that the elected IPS board no longer controls referendum decisions, and called for transparency in how tax revenue will be tracked and reported.

#### The Numbers Behind the Decision

IPEC considered multiple rate options:

IPS Superintendent Dr. Aleesia Johnson acknowledged that the lower rate means the district must still identify $20 million in additional cuts, but urged voters to support the measure.

#### A Statewide Trend

Indiana is seeing an unprecedented number of school districts seeking referendums this fall, driven by caps on property tax revenue, changes to state and federal funding policies, enrollment declines, and rising operational costs. The IPS referendum is one of dozens expected across the state.

#### What Happens If It Fails?

If voters reject the referendum, IPS will need to reduce its budget by an additional $40–$45 million annually starting in 2027. This would likely trigger staffing freezes, reduced transportation services, potential closure of support programs, and increased instability for families and students. Some have even warned of a potential state takeover.

A property tax rate of 37.2 cents per $100 of assessed value for four years, generating about $90 million annually for IPS and participating charter schools.

On a typical $150,000 home, the increase is about $221 more per year compared to the current expiring 2018 referendum.

The revenue is split equally — half ($43.9M) goes to IPS and half ($43.9M) goes to charter schools within the IPS boundary.

IPS would need to cut $40–$45 million annually, potentially leading to staffing freezes, reduced transportation, program closures, and increased instability.

The Indiana Legislature created IPEC in 2025 to oversee all schools in the IPS boundary, shifting referendum authority from the elected IPS board to this mayor-appointed body.

Do you think a 37-cent rate strikes the right balance between supporting students and keeping taxes affordable? Share this with others in Indianapolis who need to stay ahead of this critical vote!

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