Indianapolis Voters Approve $95 Million Tax Increase for Schools

Indianapolis Voters Approve Property Tax Referendum to Fund IPS and Charter Schools

Voters in Indianapolis passed a property tax increase to generate an estimated $95 million for Indianapolis Public Schools and roughly 60 charter schools across the city.

About 63% of voters approved the ballot question according to unofficial results, handing a vital financial lifeline to a district that faced potential state intervention without the measure due to its dire fiscal standing. The outcome marks a historic shift for Indianapolis, where approximately 40% of students within IPS borders attend charter schools. It is the first time charter schools enrolling IPS students will receive a proportional share of money from a local referendum.

How the Funding is Structured

The newly created Indianapolis Public Education Corporation, a mayor-appointed agency established by state lawmakers to take control over IPS buildings and transportation while managing property tax levies, floated the measure. The referendum levies an additional 37.2 cents per $100 of assessed value, replacing an expiring tax rate that voters originally approved for IPS in 2018. For a $150,000 home, the district estimates an annual tax liability increase of roughly $105.

Over each of the next four years, the $95 million will be directed toward teaching staff, academic programs, and operational expenses. The funds will be distributed based on enrollment numbers:

Charter schools are estimated to receive about $48.6 million annually, distributed according to the number of students living within IPS borders that each charter enrolls.
Indianapolis Public Schools will receive $46.4 million annually.

“This investment directs resources to the classroom,” Hannah Thomas, spokesperson for the Vote Yes for Indianapolis Public Education campaign, said in a statement. “It protects teachers and essential services, sustains strong special education services and extracurricular opportunities, and helps Indianapolis retain and attract excellent educators who build lasting careers serving local students. It also keeps decisions about our schools local.”

Indianapolis Tax Hikes Pass as District Faces Major Budget Cuts

The Indianapolis result mirrored wins for most school districts asking for tax increases throughout Marion County. Tax measures for Beech Grove, Wayne Township, and Washington Township schools also passed, while Decatur Township voters rejected their school referendum with about 54% of voters against it.

Despite the referendum’s passage, financial hurdles remain for the main district. IPS officials state they will still need to cut an extra $20 million for the 2027-28 budget year and expect school closures next year.

Earlier coverage: Indianapolis Voters Decide $95 Million Tax Measure for Schools