IPS navigates budget uncertainty during enrollment window
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Indianapolis Public Schools is facing millions in budget cuts and an uncertain future.
Why it matters: Superintendent Aleesia Johnson said IPS is facing "a long-term challenge" from legislation passed this year that cuts property taxes and forces traditional school districts to share property tax dollars with charter schools.
- Analysis of earlier versions of the charter school-sharing language raised fears that IPS would face school closures and staff layoffs, but an IPS spokesperson told Axios the district is still working to understand the latest version that was signed into law last week by Gov. Mike Braun.
State of play: The property tax reform in Senate Enrolled Act 1 will strip roughly $15 million from IPS over the next three years and more cuts could be coming.
- While schools get some funding from property taxes, the vast majority comes from the school funding formula in the state's two-year budget.
- The current version of the budget proposes annual 2% increases for K–12 schools, but lawmakers found out last week that they need to cut a staggering $2 billion from that spending plan.
Between the lines: Statehouse leaders have said K–12 education will be the last place they look to make cuts, but schools are the single largest expense, making up nearly half of the state budget.
Threat level: This is the first full year of Rebuilding Stronger, IPS' K–8 overhaul aimed at making school assignment and choice more equitable and high-quality academic programming more accessible.
- Cuts to funding could force IPS to scale back on planned expansions to academic paths, arts, music, team sports, foreign languages and facility improvements.
- While the work included in the 2023 capital projects referendum won't be impacted, smaller projects across the district could be cut.
Zoom in: The uncertainty comes at a challenging time in the calendar: the middle of the enrollment process. While the most impactful parts of SEA 1 won't take effect for several years, families may start looking for school options with less uncertainty in their futures.
- "We know that we have many families looking forward to and making decisions for next school year," Johnson said in a message to families sent during the weekend. "Our schools have so many exciting opportunities, and we encourage you to explore those as you are making your decisions."
What's next: State lawmakers are expected to have an updated budget bill in the next day or two.