Welcome to Wednesday! We've been waiting for you.

☀️ Today's weather: Sunny with a high near 83.

🎂 Happy birthday to our members Greg Malone and Julie Armstrong!

Today’s newsletter is 1,115 words — a 4-minute read.

Indianapolis Public Schools is looking to close part of its multimillion-dollar budget gap by squeezing cash from its charter partners.

Why it matters: The decision to terminate agreements with schools in the IPS Innovation Network and renegotiate terms is an about-face for a district previously lauded for its collaboration with charter schools.

• It also puts services at dozens of schools in limbo.

The big picture: The relationship between IPS and its charter partners has been strained for the last several years, as state lawmakers have made changes that shift more money away from traditional districts to charter schools.

• Last year's property tax law, Senate Enrolled Act 1, cut how much money schools and other local units of government receive from property taxes and also phased in sharing of those funds with charter schools over four years.
• IPS says SEA 1 is a big reason it's asking voters for a property tax referendum.

What they're saying: In a statement, IPS tells Axios that it has not issued notices of termination to any Innovation Network school and it's not considering any changes for the current school year.

• Last week, the district says, it told partners that the board "will need to take the formal action to provide a notice of termination of the Innovation contract as a necessary legal step to explore more fiscally responsible arrangements."
• The district says that its goal is to preserve Innovation Network partnerships, but that it needs to charge more for the services it provides those schools, such as transportation.

"This is one part of an approach that also includes other very hard decisions," Superintendent Aleesia Johnson said in a video released last night, "like school mergers or reduction of other services we currently provide."

• IPS is not trying to turn a profit, Johnson said, but to cover its costs.

The other side: Charter advocates say laws that cap what the district can charge for those services are designed to protect charter schools and prevent IPS from double-dipping — receiving property tax revenue for charter school students and then charging the schools they attend the full cost for the services.

Go deeper

After months of assuring fans that he'd be ready, Tyrese Haliburton is set to return tonight in the Pacers' preseason opener.

Why it matters: The Pacers went from the Finals to the worst record in franchise history and are counting on a healthy Haliburton to lead them back into contention.

What they're saying: Haliburton declared himself "100%" healthy with "no restrictions" at media day Sept. 28, and following Sunday's FanJam scrimmage at Gainbridge Fieldhouse, he said it was the first time he left the court and his body "felt good."

• "I'm so glad to be back," Haliburton said after FanJam. "I know a lot of people are excited for me to be back and I think there's a lot of excitement throughout the whole city for our team and our group."
• His first preseason game comes 472 days after his Achilles injury in Game 7 of the 2025 NBA Finals.

Between the lines: Head coach Rick Carlisle wants a reset. He said during media day that Indiana needs to "reclaim our position as a competitive team" after last season's 19-63 finish, stressing that success depends on the ecosystem around Haliburton.

• GM Chad Buchanan said the organization hopes to know after 25-30 games whether the group is clicking, while acknowledging it will be patient.

Zoom in: That wait-and-see approach is partly because players like Ivica Zubac, Kelly Oubre Jr. and Larry Nance Jr. are being integrated into a core that has barely played together at full strength.

• Carlisle has emphasized defense as the team's constant, as well as fitting Zubac into an offense built around pace and ball movement.
• Zubac played just 118 minutes for Indiana last season, and none of those were alongside Haliburton or Pascal Siakam.

Keep reading

🏀 Spanish-speaking Pacers fans have a new way to track the action. Yesterday, the team announced the launch of "Los Pacers," Spanish-language Instagram and Facebook accounts, along with a Spanish section of Pacers.com.

• The team will also air 10 regular-season home games in Spanish on La Mega 105.1 FM and Fuego 92.7 FM, starting Nov. 13 against the Knicks. (NBA)

⚖️ Indiana has resumed disability Medicaid waiver eligibility decisions after briefly pausing them to review how case managers used a new assessment tool that drove a surge in denials. (Indiana Capital Chronicle)

🥘 An Indianapolis developer is planning to bring an international grocery and retail center called The Mandalay to serve the south side's Burmese community. Plans call for a 30,000-square-foot supermarket and about six smaller businesses. (IBJ)

✈️ Southwest is adding daily nonstop service from Indianapolis to Cancún in June 2027 while bringing back Saturday flights to Myrtle Beach for the first time since 2021. The airline also plans to resume Saturday service to San Juan for spring break and the summer. (WTHR)

🐾 Meelo here!

I'm an adventurous young guy looking for someone to explore the world with me.

De-tails: I'm 2 years old and 70 pounds.

• I love to go for walks and discover all the interesting things there are to see and sniff.
• I'm good on a leash and any pulling is easy to redirect with a treat or attention.

What they're saying: "Meelo has some older scars, a stiff gait in his back legs and a few healing scrapes around one ear," the folks at IACS say.

• It's something for my new family to be aware of, but they say I'm ready to explore and settle into a comfortable, supportive home.

Dig deeper: Fill out an application for Meelo and see other adoptable pets online.

• The $60 adoption fee includes spay/neuter, age-appropriate vaccinations and a microchip.

👋 Justin and Arika here!

We're sending a hearty, Hoosier thank you to everyone who met up with us on Mass Ave last night for our inaugural Axios Social Club!

• Social Club an experiment to help readers connect with Axios journalism, each other and the city they call home.

We couldn't do this without you, and we're so thankful that we get to do this for you.

• Thanks again for joining us, and sign up to hear about the next Social Club!

Our picks:

🙌 Arika can't wait to take the newsletter IRL again soon for more talk about books, Butler and Indy's best neighborhoods.

🍻 Justin had a BLAST chatting with the social clubbers and staying up past his bedtime.