A $3 million budget could be set for new authority over IPS and charter schools

A bill that would transfer significant financial and operational control of Indianapolis Public Schools to a new mayoral-appointed body passed its first vote on Wednesday. 

The bill was passed out of the House Education Committee along party lines, 7-4, and was slightly amended, adding language on the amount of funding available to support the new authority.

At times, Democratic members clashed with Bob Behning (R-Indianapolis), bill author and committee chairman, over public accountability of a new municipal body empowered to close schools and levy taxes on homeowners.  

Democrat Ed DeLaney (D-Indianapolis) attempted to pass multiple amendments that would have given voters or the IPS school board more power to choose or deny the executive director of the corporation, but none were approved by the committee. 

“I would like to have the people who live in the district who have this very special arrangement have some say,” DeLaney said during the committee. 

House Bill 1423 would establish the Indianapolis Public Education Corporation to oversee a unified system for transportation, building use and school performance for both the district and charter schools within its boundaries.

A budget of no more than $3 million would be available to fund the staff, consultants and new executive director of the corporation, based on language added by Behning during the committee.

The amendment also updated deadlines for the corporation, including:

• March 31, 2026, all nine members of the new corporation board appointed by the mayor

• Nov. 30, 2026, school performance framework be submitted to lawmakers

• Nov. 30, 2027, new unified transportation plan created to be in place by the 2028-29 school year.

Behning also added language that removes the requirement that the executive director reside within the IPS district boundary. 

The legislation follows the recommendations of the Indianapolis Local Education Alliance, a state-mandated task force chaired by Mayor Joe Hogsett that voted 8-1 last month to propose the creation of the new agency.

The House committee also approved an amendment from Rep. Vernon Smith (D-Gary) that would require the corporation to hold a public hearing and consult with the Department of Education before closing a school. 

Behning told DeLaney they should continue to discuss concerns after all the Democrat’s amendments were rejected. DeLaney said it was his attempt to restore democratic oversight to the new entity, which many IPS parents have been advocating for during testimony on the bill. 

The bill now heads to the House Ways and Means committee.

How Indianapolis education would change

If passed into law, the bill would transfer significant powers from the IPS School Board to the new IPEC board beginning March 31. These powers include the authority to impose property tax levies, pursue operating and safety ballot referendums and manage debt service.

The district board would continue to oversee academics and the hiring of educators.

The legislation comes after years of debate over how to solve the city's operational inefficiencies and inequalities with the district and charter schools. It seeks to pull together the city’s fragmented education landscape, where IPS and charter schools have long competed for students and funding. There are around 42,600 students attending a public school in the IPS boundaries.

The bill also seeks to resolve a longstanding disparity in student transportation. For years, families attending charter schools have advocated for access to busing services like those provided to IPS students. It mandates that all public schools within the district’s boundaries eventually participate in IPEC’s single, unified transportation system.

The new corporation would be governed by a nine-member board, all appointed by the Mayor of Indianapolis. Behning also amended the bill to require all members to be appointed by March 31, rather than the original June 1 deadline. 

The board will consist of:

• Three members of the IPS Board of School Commissioners.

• Three leaders of innovation network or charter schools located within the district.

• Three members with expertise in management, facilities or logistics, or experience working with vulnerable students.

The bill mandates that the corporation create a "single school performance framework" by the 2027-2028 school year. This accountability framework would apply to all participating schools — both district and charter — and must include a requirement to "close chronically low performing participating schools."

The corporation would also be responsible for establishing a unified student transportation plan and a unified enrollment system.

The legislation exempts Indianapolis Public Schools from the state's law that allows charter schools to buy an unused building for $1, and transfers authority over the purchase, management and demolition of school buildings to IPEC. 

Additionally, the bill restricts future charter authorizations in the district to the Indiana Charter School Board, the Mayor’s Office of Education Innovation or the IPS board itself. 

Any charter school that is not already authorized by those entities would have until the end of its current contract with its authorizer before having to switch over to one of the three entities.

Contact Government Reporter Caroline Beck at cbeck@wfyi.org.