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Indianapolis Public Schools will ask voters for $410 million to fund athletic fields, new windows, fresh sidewalks, and a brand new 650-student elementary school when they head to the polls in May.
District officials say the tax increase is also needed to keep district buildings up to date. On average, the district’s buildings are 61 years old.
The referendum for capital expenses is part of the district’s Rebuilding Stronger reorganization. In addition to upgrades at 23 schools, the plan resurrects standalone middle schools throughout the district, beefs up academic offerings such as arts and computer science, and expands athletic offerings for middle school students.
In January, the school board delayed a vote on a separate referendum for operating expenses that would pay for Rebuilding Stronger’s academic programming changes.
The request for $410 million is about one-third of the district’s total $1.2 billion in deferred maintenance needs.
In 2018, voters approved a $52 million referendum for building safety upgrades. In 2008, voters approved a much larger upgrade when they passed a $278 million referendum for capital expenses to update 32 schools.
Now, some of those upgrades from 2008, such as HVAC units and windows, are in need of repair, said Deputy Superintendent Andrew Strope.
“We need to update those things so that students have a safe and welcoming place to spend their day,” Strope said.
For many homeowners, the tax increase would add a handful of extra dollars to their monthly tax bill.
Here’s what you need to know:
Why does IPS need $410 million?
A 2020 district analysis concluded that more than 30% of its buildings are in “poor” condition. That means the cost to renovate the building is between 30% and 40% of the building’s entire replacement cost.
IPS, like other school districts and public agencies, borrows money for facility investments in cycles. The district pays off that debt over decades.
Facility needs, such as plumbing, roofs, or HVAC systems, need to be replaced at the end of their life cycle. Putting off those necessary upgrades, however, can make things more expensive down the road.
The goal is to try not to leave the next generation with a big price tag, said CFO Weston Young.
“Right now we’re working with a big price tag because of the significant investments that were mad in the 2000s,” he said. “Very little has been done because all of it was new at that time. Now we’re getting to the point of the cycle where a lot of stuff is coming due.”
Which schools will get improvements?
The district has listed 23 schools for improvements, which vary based on the building’s need.
At William Penn School 49, for example, that means better plumbing, new sidewalks, and classroom upgrades so the school can become a STEM school as proposed under Rebuilding Stronger. The school is slated to receive $9.5 million in improvements, the district says.
At Thomas Carr Howe Middle School, which closed in 2020, $39.8 million will prepare the school to welcome students once again in 2024. That means improvements to its softball and baseball fields, and fixes to its interior lighting, plumbing, fire alarm system, roof, and windows.
Five of the 23 schools are schools within the district’s autonomous Innovation Network. These schools are in district buildings and are mostly run by charter operators.
The full list of schools and their improvements is here.
Why is the district asking for more money after voters approved a capital referendum in 2018?
The district’s $52 million capital referendum from 2018, which 76% of voters approved, was strictly for safety and security upgrades.
Those upgrades, which will be completed by the end of 2023, include improved door locks and outdoor lighting.
This much larger $410 capital referendum addresses outdated building needs beyond safety and security measures, which the 2018 referendum did not address.
How much will the referendum cost homeowners?
The district estimates that residents with a home value of $138,500—the median value of homes within IPS borders—will see an extra $3.18 per month on their property tax bill.
You can estimate your monthly tax increase using the district’s calculator by entering the gross assessed value of your home here.
Your gross assessed value is the value of your home before any deductions, such as a homestead deduction. You can find your gross assessed value online by entering your property address on the city’s website here.
How does this affect the district’s total debt?
The district’s current tax rate for debt is roughly 52 cents per $100 of assessed value.
Some of that stems from debt issued through previous ballot questions that voters approved in 2008 and 2018. Debt from the 2008 referendum will be paid off in 2029. Debt from the 2018 referendum will be paid off by 2043.
The proposed referendum is set up to replace that older debt as it expires, while still maintaining a total debt rate of no more than 52 cents per $100. The district anticipates paying off debt from the proposed 2023 referendum by around 2046.
What will the ballot language look like?
Changes to state law in 2021 requires the school district to describe the tax increase as a percentage increase on the ballot question.
The ballot question for May says that the “average property tax paid to the school corporation per year on a residence would increase by 20.4%.”
The language means the portion of the average property tax bill dedicated to IPS will increase by 20.4%. It does not mean that a homeowner’s total property tax bill will increase by 20.4%. Many other taxing units aside from Indianapolis Public Schools, such as the city’s public transportation system or the Indianapolis Public Library, also receive a portion of the total amount shown on your tax bill.
What if the capital referendum doesn’t pass?
If the proposed referendum fails, it may take longer for these 23 buildings to receive upgrades.
The district estimates it would take eight years to bring all elementary and middle school facilities to “good” condition, meaning the buildings only require routine maintenance.
But if voters reject the referendum, officials would have to use a few other funding mechanisms that would likely take 14 to 15 years to bring those buildings up to date, Strope said.
“It will just take a lot longer to make some very much needed investments in some of our facilities,” he said. “This $410 million is a really big deal when it comes to making a pretty substantial investment that our students deserve.”
When and where do I vote for the IPS 2023 referendum?
Early voting starts April 4 at the Indianapolis City-County Building. Additional early voting sites open April 22.
On Election Day, May 2, polls are open 6 a.m to 6 p.m., and Marion County residents can vote at any of the county’s voting centers.
To find voting center locations for early voting and Election Day, apply for an absentee ballot and to see a sample ballot, visit vote.indy.gov.
For more details on the referendum, visit the IPS referendum website here.
MJ Slaby contributed to this story.
Chalkbeat is a not-for-profit news site covering educational change in public schools.
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Instead of asking for more funding, why not fire 90% of IPS Administrators?
Why are there over 5 Administrators for each classroom teacher?
The goal of each teacher seems to be to get moved up and out of the classroom to a cushy job.
Cut needless spending first. Pay actual teachers well. Add discipline and expel bad kids.
Then ask for add’l funding from us.
Part of the problem is a lot of public sector jobs are just workfare, and the party that controls our city doesn’t dare reduce jobs that benefit its voters.
One of the biggest reason why I don’t miss living in Marion County anymore….continuing to pay higher taxes and referendums for more money to IPS with continued failed outcomes, wasted money etc….
I don’t doubt that most of the projects planned would be good investments . . .
However, the legislature (or whoever is responsible) needs to change the law that requires public schools to sell buildings to charter schools (or anyone for that matter) for $1. They need to be able to sell whatever buildings they don’t need or are not using for fair market value. That is what a responsible organization would do.
The school system needs to be run like a business–efficiently, effectively and with no workfare employees. We need to give them every opportunity outside of unlimited funding to educate the children in their district.
Ditto on not being able to sell the buildings for market value and putting the money back into the system before asking for more from taxpayers.
This is the same School Board that appointed Stephen Lane to the Indy Library Board. Lane is a member of the Party of Socialism and Liberation, a Marxist organization. I asked each member of the School Board why they thought that was a good choice. Not a single Board member had the courtesy to respond. I can’t support the decision-making of this group.