A Surplus In IPS Budget May Not Be Sustainable

The Indianapolis Public Schools Board was presented with the projected 2019-20 school budget Thursday night.

The good news: IPS is posting a projected $3 million surplus. The bad news: the surplus is not sustainable without additional cuts. 

"So we will, on the one hand, sort of celebrate and recognize and highlight the fact that we are ahead of the game as it relates to our savings target," interim superintendent Aleesia Johnson says. "But on the other hand, call to the board the public's attention that we still have some decisions to make to make sure we stay in a sustainable place financially."

The surplus is largely a result of two property-tax referenda passed in November. The district has also saved more than projected by closing high schools, changes to transportation and staff reductions. However, district leaders say without more significant changes the operational fund will be depleted by 2022.

These significant cuts may include school closures, especially when district leaders want to maintain teacher salaries raises each year. 

The district has two pots of funds -- the education fund which pays for teachers salaries, and classroom supplies, and the operating fund which pays for utilities, custodial staff, and transportation. The budget proposes moving $25 million from the education fund to the operating fund to deplete its deficit. 

Then, the education fund will be supplemented with $27 million from the referenda.   

The district will hold a public hearing about the budget March 11 at Arsenal Technical High School and will vote whether to adopt the budget at March’s school board meeting.

Some of the district's funding factors are still in-flux, such as how much money the district will receive from the state, future property tax income, and student enrollment.