REAL ESTATE

Indianapolis schools warn up to $45M in cuts; November property-tax referendum would add about $115/year to a $150K home

WISH-TV reports Indianapolis Public Schools leaders told a community gathering that voters inside IPS boundaries will decide a November operating referendum to raise property taxes for staff pay and student services. Officials say cuts are coming either way and estimate a homeowner of a $150,000 house would pay about $115 more annually if the measure passes.

BUSINESSINDY BRIEFBy BusinessIndy Editorial StaffCommentsPublished October 6, 2026 at 7:14 PM EDT

AI-generated illustration of the topic: Indianapolis schools warn up to $45M in cuts; November property-tax referendum would add about $115/year to a $150K home — AI illustration · Not a photograph of the reported event.

WISH-TV reports Indianapolis Public Schools leaders, speaking at an event hosted by the Interdenominational Ministerial Alliance at the Jewel Center, said voters living inside IPS boundaries will decide a November operating referendum that would raise property taxes to fund staff pay and student services. Mayor Joe Hogsett voiced support at the gathering, and IMA president Lionel Rush described the measure as an investment in children, using the phrase “Our children are the email we will send to a future.”

District leaders told the audience IPS has already cut $24 million from its annual budget. They said the district faces a deficit even if the referendum is approved and projected it would still need to plan about $20 million in additional annual cuts if the measure passes. Officials also warned that, if voters reject the increase, annual cuts could reach $45 million. Superintendent Aleesia Johnson framed the request as about $9 a month, and IPS estimates an owner of a $150,000 home would pay about $115 more per year.

WHY IT MATTERS

An operating referendum is a local vote to allow a school district to raise property taxes for day-to-day expenses — in this case, IPS says those dollars would go to staff pay and student services. The immediate choice falls to property owners and other voters inside IPS boundaries: a yes vote would increase homeowners’ property tax bills but, according to district projections, would not by itself eliminate a budget shortfall. The district reports it has already trimmed $24 million and anticipates further cuts even with approval, while officials say rejecting the referendum could force deeper cuts of up to $45 million.

For homeowners, the district’s estimate provides a simple frame: IPS says a $150,000 house would see roughly a $115 annual tax increase if voters approve. For school leaders and community groups, the decision will affect staffing and services the district can afford; IPS leaders warned about potential teacher and staff reductions and possible school closures as outcomes of funding gaps. The next milestone is the November election, when voters living within IPS boundaries will decide the referendum.

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