These 3 bills will 'destroy' IPS, district leaders say

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Legislation at the Indiana Statehouse would destroy the 172-year old Indianapolis Public Schools, district leaders say. 

The seven members of the school board denounced the GOP-led legislation Thursday night during a four-hour public meeting that attracted dozens of community members who oppose the legislative plans. 

They said proposed legislation that would reduce funding, governance, and operations.

“We are faced with several bills that are intended to destroy IPS,” Commissioner Gayle Cosby said. 

Indianapolis education reform groups and some politicians have not endorsed the legislation but continue to call on IPS to address what they say are inequitable issues of funding, transportation and access to facilities for children who attend charter schools in the city. 

Nearly 40% of students who live in IPS boundaries attend charter schools.

Here is the legislation: 

House Bill 1136 - School corporation reorganization
What it would do: House Bill 1136 proposes converting 50 schools in the Indianapolis Public Schools district into charter schools due to enrollment shifts and disbanding the elected school board.

The bill states that if more than 50% of students residing within a school district’s boundaries were enrolled in schools not operated by the district as of Oct. 1 of the previous year, the district must be dissolved.

Traditional public school advocates sounded alarms across the state. The uproar around the bill has slowed because it has yet to be brought to the House education committee, where lawmakers can debate the future of these schools.

Those who are opposed to it, say it targets low income and rural families and students of color. The bill’s author Rep. Jake Teshka (R-North Liberty) told WFYI that targeting those areas and groups is “somewhat incidental.”

“We're looking at school districts where folks are moving away, and presumably, because there are issues with those, those districts,” Teshka said.

Four other school districts would also be disbanded under the legislation: Gary Community Schools, Tri-Township Consolidated Schools in LaPorte County, Union Schools southeast of Muncie, and Cannelton City Schools in Perry County.

What IPS says: The district issued a statement in opposition in early January that said the legislation would divert attention and resources from students in the district. 

“This legislation is not student-focused and fails to reflect the community's input on how they envision their public schools thriving,” they said in the statement. 

The board doubled down on their stance at its Jan. 30 public meeting. “This harmful legislation would strip communities of their voice and destabilize our financial foundations,” board member Ashley Thomas said.

House Bill 1501 - Facilities and transportation pilot programs
What it would do: Student transportation and management of facilities could soon be out of the hands of Indianapolis Public Schools leaders. 

House Bill 1501, authored by Rep. Bob Behning (R-Indianapolis), would require IPS and four other school districts to participate in facilities and transportation pilot programs because less than 50% of students within the districts’ boundaries attend schools operated by the school district. 

They would also be required to participate in the three-year pilot programs. 

The bill creates local facilities and transportation boards, which will have significant authority over school facilities and student transportation management, beginning in the 2026-2027 school year. 

The affected school districts would have no say in who sits on the boards. Following the pilot years from 2026 to 2029, the boards could then begin imposing property taxes for facilities and transportation services. 

Like with House Bill 1136, other districts include Gary Community Schools, Tri-Township Consolidated Schools in LaPorte County, Union Schools southeast of Muncie, and Cannelton City Schools in Perry County. 

What IPS says: The district described House Bill 1501 as inefficient and would increase the odds of more taxes for IPS residents. 

“Imagine a future where parents have to call multiple places to answer questions as simple as ‘will my child have a bus stop or will this school have the same grades to serve my child next year?’” board member Ashley Thomas said. “It will create confusion, raise taxes, and strip our community of local control.”

Senate Bill 518 - School property taxes
What it would do: Senate Bill 518 would force all traditional public school districts to begin sharing more property tax dollars with charter schools. Charter schools would receive a cut of local property tax money traditional schools receive to cover facilities and transportation costs, and a portion of tax increase referenda approved by voters. 

Currently, only four counties are required to share operational and school safety referendums. IPS is the only school district in the state that shares a fraction of property tax funds with local charter schools. 

Lawmakers in 2023 passed a law requiring school districts in four counties – Lake, Marion, St. Joseph and Vanderburgh – to share revenue from property tax referendums approved by voters with charter schools.

If approved, some charter schools would receive a decrease in state grants. More than $20 million would be stripped away from charter schools that partner with IPS, known as Innovation Network School Networks.

What IPS says: The board says that the revenue loss could end up approaching nearly half of the district’s operations fund budget, and that they would have to close 20 or more schools throughout the district. That would cause disruption for families and hundreds of staff to lose their jobs, Thomas said

The district offers transportation to a handful of innovation charter schools in the city. Thomas said if this bill passed, the district would be forced to stop offering these services. 

Senate Bill 1- Property tax reform
What it would do: The bills targeting IPS come at a time when lawmakers are also considering a massive overhaul to local property taxes.

Property tax reform – authored by Sen. Travis Holdman (R-Markle) in Senate Bill 1 – could greatly impact local government and schools. SB 1 could cost school districts more than $535 million in the budget’s first year, the bill’s fiscal note estimates.

One of the biggest losers in this is Marion County, where estimated changes in revenue show more than $140 million across the two-year budget. 

Braun said school districts that relied heavily on property tax increases each year showed “poor management”.

“The ones that poorly managed how they spent it and overtaxed in the process are who we're going to get back down to Mother Earth,” Braun said. 

What IPS says: In addition to the three bills that single out IPS, district leaders say other legislation will lower the total amount of local revenue.

“All together, the picture that comes into focus is challenging but clear: There simply is no scenario where the district looks in a decade the way it does today,” the board said in a statement. “Big changes and extremely challenging times are ahead.”

Rachel Fradette is the WFYI Statehouse education reporter. Contact Rachel at rfradette@wfyi.org.

WFYI education reporter Sydney Dauphinais covers Marion County schools. Contact her at sdauphinais@wfyi.org.