Indianapolis Public Schools to ask for tax increase, seeks nearly $1 billion

Indianapolis Public Schools wants to ask taxpayers for nearly $1 billion over the next eight years for teacher raises, school building improvements and special education services.

The state's largest school district hopes to put two referenda on the ballot in the May 2018 primary. The operating referendum IPS wants would raise $92 million annually for eight years, to pay for teacher raises and special education services.

A capital referendum would generate $200 million to fund the district's Safe and Equitable Schools Project, which calls for renovating and improving school facilities, making safety enhancements and upgrading classroom technology and equipment.

The district estimates the total monthly tax impact to be $28.45 per month, or about $350 a year, for the owner of a $123,500 home — the median home value within the district. Individual tax impacts would depend on property value.

The district will hold public meetings Dec. 12 and 14 to take public input before the school board votes on the measures.

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In an appeal posted to the district's webpage, it says IPS needs more funding to compete with surrounding school districts for top teachers.

"We must increase teacher pay to retain high-quality teachers and help recruit new teachers," it says.

The plan would allow the district to give all employees an annual 2 percent cost of living raise and maintain cost-neutral health care benefits. Without the referendum, the statement says, IPS could be forced to freeze teacher and employee pay.

The district recently struck a one-year deal with the Indianapolis Education Association to move most teachers up the salary schedule, for an average raise of 2 percent. At a meeting last month, Superintendent Lewis Ferebee said the district would be willing to increase starting pay for new teachers, if the budget improves.

This is the first tax increase sought by IPS in nearly a decade. A $278 million capital referendum was approved by voters in 2008.

The $200 million in capital funds IPS is seeking now would touch every school in the district, said Ahmed Young, the district's chief of staff. It would address technology needs, lighting upgrades and deferred maintenance.

Some of that money could be directed toward the plan to reinvent its high schools. Beginning next year, IPS will operate just four high schools. Each will be open to all students in the district, regardless of their address, and will offer new college- and career-themed academies.

Earlier this year, the IPS school board voted to close three high schools and a middle school. Broad Ripple High School and John Marshall Middle School will close after the current school year. Arlington and Northwest high schools will be converted to middle schools.

"This puts us in a position where we can make sure we can continue those efforts of rightsizing the district," Young said.

Eight other school districts in Marion County have sought a tax increase since 2010. Districts across the state have turned to referenda since the state instituted property tax caps in 2009. Referenda allow school districts to ask voters to override property tax caps and provide them with additional dollars to fund both capital projects and general operating needs.

Four school districts had six referendum questions on the ballot last month. Five of those passed. Another nine districts ran referendum campaigns last spring — including three in Hamilton County. All three Hamilton County districts and four others were successful; two were not.

Young said that with other districts in the county and region passing referenda, IPS needs to do the same to stay competitive.

"The state of public education has shifted significantly over the last several years," he said. "We need to remain competitive in the heart of the city."

In addition to IPS, several other districts around the state have said they also plan to ask for tax increases in May.

Call IndyStar education reporter Arika Herron at (317) 444-6077. Follow her on Twitter: @ArikaHerron.