Mayor-appointed board to assume control of Indianapolis school facilities, finances under new legislation

This story will be updated.

The Indiana Senate on Tuesday passed a sweeping measure that creates a new municipal oversight body for Indianapolis schools and shifts major financial and facility powers away from the locally elected board. The bill now faces one more step before it moves to Gov. Mike Braun for signature.

House Bill 1423 establishes the Indianapolis Public Education Corporation, a nine-member board appointed by the mayor to oversee a unified transportation, facility and school performance system for nearly 43,000 students.

The district and charter schools will retain control over hiring of educators and staff, and academic curriculum. School leaders can opt out of the corporation taking control of their facilities.

The change will make the most significant upheaval in Indianapolis education since the introduction of charter schools more than 20 years ago. It also, for the first time, brings major functions of IPS and dozens of charter schools under the mayor’s office.

Democrats expressed deep frustration over the bill's rapid advancement and said lawmakers were singling out IPS, while other districts face similar challenges in enrollment and finances. 

Sen. Jeff Raatz (R-Richmond), who sponsored the bill, refuted the comments. 

“This is not a game or some unnecessary exercise. People have taken painstaking time, at no pay, to come up with this plan,” he said. “And there were plenty of people involved in it. Is it perfect? I'm sure not, but it's a pathway forward.”

The bill passed 27-21 out of the Senate. It returns to the House for final approval.

The legislative path for HB 1423 originated in early 2025 when lawmakers established the Indianapolis Local Education Alliance. The state-mandated task force, chaired by Mayor Joe Hogsett and including IPS Superintendent Aleesia Johnson, was charged with developing a plan for how the district and charter schools can collaborate and share resources. 

Following months of review, and eight public meetings the alliance voted 8-1 in December to recommend the creation of a new municipal oversight body.

Still, Democrats offered amendments Tuesday and in past weeks to delay or alter the bill and framed the overall push as means to give charter schools and organizations that support them an edge over the district. 

“I join my colleagues in supporting parental choice. What I don’t support is funding one choice at the expense of another,” said Sen. Faddy Qaddoura (D-Indianapolis).

Current Indianapolis Public Schools board members have warned the move dilutes the power of elected officials. Critics, including district families, characterized the plan as "taxation without representation," noting that the new corporation board will have the authority to tax levies starting this year.

But school choice advocates and some local families argue the bill is necessary to ensure equitable funding and access to transportation students who attend independent charter schools. Around 11,000 students are enrolled in charter schools within the district boundaries that are not affiliated with IPS.

Raatz said that the General Assembly should “never apologize for giving parents the choice where they want to send their students.” He characterized the shift in enrollment away from traditional IPS schools as a result of families seeking the best options for their children.

Raatz also framed the legislation as helping the district avoid a fiscal cliff due to the end of a property tax referendum that brought in at least $43 million in additional revenue during recent years. 

If the bill is signed into law, the Indianapolis Public Education Corporation is expected to seek a property-tax referendum on the November general election ballot that would fund IPS and charter schools. The legislation also narrows who can grant or renew charters for schools located in the district boundaries to three entities: the Indiana Charter School Board, the Indianapolis mayor’s office and the IPS board.

Charter schools authorized by other entities prior to April 1, may continue operating under their current authorizer until their charter term expires or is terminated. After that point, the schools must seek renewal from the three authorizers.

What’s next for Indianapolis Public Education Corporation

If the legislation is signed by the governor, Mayor Joe Hogsett has until March 31 to appoint the nine-member board, including three leaders of charter schools, three IPS board members and three experts in logistics or community work.

The board faces a number of deadlines: 

• March 31, 2026: the corporation assumes the powers of IPS regarding budgets, tax rates and tax levies.

• August 1, 2026: Submit a report detailing progress on creating the single school performance framework, including processes to close chronically low performing schools and buildings found to be inefficient.

• November 30, 2026: Feasibility study regarding the best approach for managing school property and unified transportation plan.

• 2028-2029 school year: the corporation will control the management and operation of all school property within IPS boundaries; a unified transportation plan for all participating schools.

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