This bill would unify IPS and charter schools under one mayor-appointed authority

Legislation that would fundamentally reshape education in Indianapolis was debated during a hearing Monday at the Statehouse. Many who spoke raised concerns about provisions that would strip financial and operational control from the elected Indianapolis Public Schools board and hand it to a new mayoral-appointed body.

House Bill 1423 would establish the Indianapolis Public Education Corporation, a new municipal corporation tasked with overseeing a unified system for transportation, building use and school performance for both the district and charter schools within its boundaries.

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.

Michael O’Connor, the special contractor assigned by Hogsett to work with the ILEA in formulating the final recommendations, said during the committee hearing on the bill that it accurately reflected the group's final proposal.

A couple of details that are not yet in the bill, however, are the desire to address the funding gap for special education services IPS sees every year, and how property tax dollars would ultimately be distributed to all schools. IPS is currently funding full special education services at a $24 million annual deficit, according to the ILEA.

If passed, 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 House education committee heard over three hours of testimony on Monday, with those supporting IPS mostly speaking against the bill and charter-friendly groups largely supporting the bill. 

The committee is expected to vote on the bill later this month.

Parents want accountability and better transportation

The new corporation would be governed by a nine-member board, all appointed by the Mayor of Indianapolis. According to the bill, the board must be appointed by June 1, and 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.

Multiple parents of IPS students spoke against the bill, saying that by placing an appointed board in charge of major district operations, it would strip parents of their power to have a say over their schools.

“This isn't about party or politics,” said Kristen Phair, IPS parent and leader of the IPS Parent Council. “It's about preserving a system where parents have real authority over decisions that affect their children's lives.”

Other IPS parents, like Courtney Hawk, said that by allowing a new appointed authority to also set new tax levies, it essentially amounts to taxation without representation.

“If they raise my property taxes, I can't vote them out,” Hawk said. “I can only hope the mayor replaces them.”

Transportation & academic accountability

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.

Multiple charter school parents and charter school leaders spoke in support of the bill, saying that it would help address the uneven access to daily transportation seen across the city.

“Students, families pay the cost for systems that are not aligned,” said Chaklan Lacy, who described the struggles her daughter has faced due to their charter school not having transportation. 

Charter school leaders against limiting authorizers 

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. 

Charter school leaders like Aleicha Ostler, who founded Invent Learning Hub and is authorized by Trine University’s Education One in Angola, said that by limiting the number of authorizers, it limits charter schools’ autonomy.

“Placing all schools under one or two authorizers creates greater control but that approach directly contradicts the foundation of charter schools’ autonomy, choice and the ability to meet unique student needs,” Ostler said. 

While IPEC would assume responsibility for levying property taxes and distributing revenue through a new formula, the fiscal impact statement warns that establishing the corporation will likely incur "significant" costs for staff and office space. The legislation requires an executive director and likely staff. 

Charter-friendly organizations like Stand for Children and the Mind Trust all spoke in support of the bill; however, they did voice concern about tying all appointment power to the Indianapolis Mayor’s office.

“The governance model should ensure balanced representation, which it does, but regardless of political or philosophical shifts in the future,” said Kim Reier, vice president of the Indiana Charter Innovation Center. 

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

Eric Weddle is WFYI's education editor. Contact Eric at eweddle@wfyi.org or follow him on X at @ericweddle.