The newly created Indianapolis Public Education Corporation is proposing a $3.2 million budget for 2027 as it prepares to carry out a state-mandated charge to oversee transportation and buildings for Indianapolis Public Schools and charter schools.
The funding will be the first annual budget of IPEC, a mayor-appointed board that state lawmakers created through a law passed earlier this year. The new agency will take control of the buildings and implement a unified transportation plan for both district and charter schools in 2028.
The $3.2 million represents the estimated 3% of local property tax revenues for operating expenses that the agency can receive for its own expenses under the new state law.
The board’s nine members will consider the budget for adoption at its next meeting on Oct. 29.
The budget would include $1 million for salaries and benefits. The agency so far has only two full-time staff — executive director Karega Rausch and executive vice president Andrew Strope — with salaries of $285,000 and $250,000, respectively. At least two additional full-time staff could be hired next year, Rausch said at a meeting on Monday.
The budget would also include $1.9 million for consulting and expert services. The corporation must also create a school rating system for both district and charter schools that could inform potential school closures. IPEC must also adopt a unified enrollment system for both school types.
The budget sets aside another $300,000 for IPEC’s physical office.Currently IPEC staff are working out of the Indianapolis City-County Building at no cost.
Rausch said the agency is looking for the right long-term space for IPEC staff.
“We would like, if possible, to continue our relationship with the city-county building for cost efficiency purposes,” Rausch said. “We’re looking into that now.”
Rausch said IPEC could supplement its budget with philanthropic dollars as the agency launches into its beginning years, but would run on guaranteed resources rather than potential giving.
“I do not think it would be wise to develop this organization in such a way that it’s reliant on philanthropy for its core operations,” he said.
During the meeting, IPEC members also discussed its property tax referendum for the November election. They are asking voters to approve a property tax increase to generate $95 million for operating expenses annually over the next four years that would be roughly split between IPS and 60 charter schools.
The agency would not collect any revenue from the proposed 2026 referendum if voters approve the tax increase next month.
Consulting services extended
The IPEC board on Monday also approved a contract to continue consulting services with Mike O’Connor of the Bose Public Affairs Group. O’Connor served as the agency’s interim executive director as the newly appointed board searched for its first leader.
The contract lowers O’Connor’s monthly rate from $40,000 to $25,000 through December.
In public comment, IPS school board candidates who are critical of charter schools questioned the IPEC budget amount and the agency’s transparency.
Lindsey Cornett, a District 4 candidate, said she had concerns about the size of the agency’s budget.
“That is a significant amount of money when our public schools are in a financial crisis,” she said. “And $1.9 million for expertise and consulting is particularly frustrating to me because part of the purpose of IPEC — the mayor was tasked with appointing experts to this board.”
Indianapolis Public Schools Board’s faces a $20 million deficit from declining enrollment, a requirement to share more property taxes with charter schools and Indiana’s property tax changes that restricts local revenues.
Contact WFYI Education Reporter Amelia Pak-Harvey at apak-harvey@wfyi.org.
