Indianapolis Voters Approve Tax Measure Funding Schools and Charters

Indianapolis voters approved a property tax increase to generate an estimated $95 million annually for Indianapolis Public Schools and roughly 60 charter schools across the city. About 63% of voters backed the ballot question, creating a financial lifeline for a traditional district that faced potential state intervention due to its dire financial situation.

The outcome stands in sharp contrast to Decatur Township, where roughly 54% of voters rejected their school tax measure. Meanwhile, voters across Marion County approved requests in Beech Grove, Wayne Township, and Washington Township.

Approved Measure Replaces Expiring Tax Rate with 37.2-Cent Increase

The approved measure adds 37.2 cents per $100 of assessed value. It directly replaces an expiring tax rate that voters approved for Indianapolis Public Schools in 2018. District calculators estimate an annual tax increase of roughly $105 for the owner of a $150,000 home.

State lawmakers created the Indianapolis Public Education Corporation, a mayor-appointed agency, to manage property tax levies benefiting both the traditional district and local charters. About 40% of students within Indianapolis Public Schools borders attend charter schools.

Dividing the Revenue Between Sectors

Under the funding structure, the $95 million collected each year over the next four years will be distributed based on enrollment numbers. Charter schools, which are free public schools managed by nonprofit boards instead of elected officials, are estimated to receive about $48.6 million annually. Indianapolis Public Schools will receive $46.4 million.

That split marks a historic shift. It is the first time charter schools enrolling district students receive a proportional share of money from the referendum.

This investment directs resources to the classroom. It protects teachers and essential services, sustains strong special education services and extracurricular opportunities, and helps Indianapolis retain and attract excellent educators who build lasting careers serving local students. It also keeps decisions about our schools local.

That perspective came from Hannah Thomas, spokesperson for the Vote Yes for Indianapolis Public Education campaign, in a statement following the vote. Proponents noted the vote came despite a rise in the cost of living across the state.

District Officials Plan Extra $20 Million in Cuts

Even with the revenue infusion from the referendum, district officials state that Indianapolis Public Schools must still cut an extra $20 million for 2027-28. School closures are expected next year.