What is a Referendum and What is IPEC’s Role in Pursuing One?

The Indianapolis Public Education Corporation (IPEC) held its first meeting last month. Long-term, this new body will oversee facilities and transportation for Indianapolis Public Schools (IPS) and public charter schools within IPS boundaries.

But one of IPEC’s most immediate action steps is to consider advancing a referendum to support both IPS and charter schools on this November’s ballot. That’s the result of recent legislation that shifted the power of seeking referendums from the IPS Board to the IPEC board.

The IPEC board will vote whether to put a referendum on the ballot this summer. As we await more details, it’s worth stepping back to understand what a referendum is and how it impacts our community. We tackle that below.

What is a School Referendum?

A school referendum, also called a tax levy, is a ballot question that asks voters to approve or deny a property tax increase. The tax increase directly supports local public schools in paying for things like programming, staff, and building upgrades. Referendums can also be used to expand programming or hire more staff based on the needs of a school and its community.

Typically, a referendum falls into one of two categories: operating or capital.

An operating referendum can support ongoing expenses like teacher pay, programming, utilities, technology, and transportation. IPS’ current operating referendum, passed in 2018, expires at the end of the 2026 calendar year. This is the type of referendum the IPEC board is considering.

Meanwhile, a capital referendum is earmarked for major construction projects, like renovating existing school buildings or constructing brand-new buildings that better serve students and families. IPS last passed a capital referendum in 2023 to support school building renovations and upgrades as part of its Rebuilding Stronger plan.

How Does a Referendum Impact an Individual’s Taxes?

We can’t know exactly what impact a new referendum will have on people’s property taxes until an amount is made public, but we can look to past referendums as a guide. IPS’ most recent capital referendum totaled $410 million.

The median homeowner has ended up paying just under $40 per year in additional property taxes. Some people pay more, some less, with the cost to each taxpayer calculated based on the assessed value of their home.

If passed,  a new referendum would increase property taxes, though the amount will again vary by homeowner due to individual home values determining how much someone pays.

Who Will a New Referendum Benefit?

Due to legislation in 2024 and 2025, a new operating referendum would benefit IPS schools and charter schools who request to join the referendum through the Indiana Department of Education.

The IPEC board may discuss the referendum at their May 28 meeting. A location and time are still being confirmed. Better Together will share updates on timing when details are announced.

Remember, Better Together is here to support you and help you navigate changes in our city’s education system.

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