Indianapolis teachers union opposes IPEC-backed $95M school tax plan as IPS still faces $20M in cuts

Community leaders launched a campaign in support of a four-year tax referendum that IPEC approved in June. The state-created Indianapolis Public Education Corporation would collect roughly $95 million a year if voters approve the proposal in November and split revenues between Indianapolis Public Schools and about 60 participating charter schools. Superintendent Aleesia Johnson said passage would avert a level of insolvency that could invite state takeover, but IPS still expects to make about $20 million in further reductions.

The Indianapolis Education Association opposes the plan, arguing it’s unfair to seek a tax increase while neighborhood schools face cuts. Ballot language estimates an owner of an average Indy home valued at $150,000 would pay roughly $221 more per year; IPEC’s executive director says the real average increase would be lower when prior tax levies are considered. IEA has asked Mayor Joe Hogsett to press IPEC to change the funding split, but IPEC says state law sets the distribution; supporters point to backing from groups including the Indy Chamber. The election is Nov. 3.

BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.