Indianapolis, Indiana Voters Approve $95 Million a Year School Tax for IPS and Charters

Indianapolis voters on Tuesday approved a school tax referendum worth an estimated $95 million a year for Indianapolis Public Schools and the charter schools inside the IPS boundary. With all vote centers reporting, about 63 percent of voters backed the measure and 37 percent voted no, according to unofficial Marion County results reported by Chalkbeat Indiana and the Indianapolis Star.

The referendum sets a property tax rate of 37.2 cents per $100 of assessed value inside the IPS boundary. It replaces the 19.6-cent rate voters approved in 2018. Ballot language noted that the owner of a home assessed at $150,000 would pay an additional $221 under the new referendum, and supporters said the real increase would be smaller because homeowners have already been paying the 2018 rate, Chalkbeat reported.

Where the money goes

Just under half of the money, about $46 million a year, will go to IPS. About 60 participating charter schools will split about $48.5 million a year, according to Mirror Indy. Of the total, $63 million is set for programming, including services for students with disabilities and students learning English, and $32 million will support staff retention and professional development, Chalkbeat reported.

The vote was the first run by the Indianapolis Public Education Corporation, known as IPEC. A state law passed in 2026 created the corporation, a board of district and charter leaders appointed by the mayor, and gave it the taxing powers IPS previously held. IPEC plans a public tracker for referendum spending, and its executive director, Karega Rausch, pledged that not a dime of the money would go to IPEC itself, according to Chalkbeat.

The Yes campaign was led by former Indianapolis mayor Bart Peterson and former IPS board president Diane Arnold, Chalkbeat reported. Voters interviewed at the Benjamin Harrison Presidential Site on election day backed the measure, including Michael Miller, who told Chalkbeat that anything that supports schools felt good to support.

A district that still faces cuts

The stakes were high for IPS. Last week, Rausch repeated a warning from Superintendent Aleesia Johnson that the district could face insolvency and a state takeover if the tax measure failed, according to Chalkbeat. Approval does not close the district's budget gap. IPS has said it expects to cut at least $20 million even with the new referendum, as changes in how the state directs property tax dollars to schools continue, Mirror Indy and Chalkbeat reported.

Four of five Marion County school votes passed

The IPS question was one of five school referendums in Marion County and one of a record 38 across Indiana this fall, according to Mirror Indy. Beech Grove voters backed their measure with about 59 percent, Washington Township with nearly 67 percent and Wayne Township with just over 53 percent. Decatur Township was the only Marion County district to say no, with just over 53 percent voting against its measure.

The results are unofficial. The tax will show up in how Indianapolis families inside the IPS boundary are billed and in the budgets IPS and charter schools set for staffing, English learner services and disability services in the year ahead.