2026 IPS referendum: what Indianapolis voters decide this fall

Indianapolis voters will decide a four-year operating referendum in November that would raise school property taxes to 37.2 cents per $100 of assessed value. IPEC unanimously approved the measure on June 22, 2026, splitting roughly $87.8 million annually between IPS and about 60 charter schools—yet IPS still faces an estimated $20 million in cuts even if it passes.

Key Takeaways

• IPEC placed a 37.2-cent operating referendum on the November ballot, nearly double the expiring 19.6-cent rate.
• Revenue would be split evenly: about $43.9 million each for IPS and participating charter schools.
• Owners of a typical $150,000 home could pay roughly $8.41 more per month in property taxes if the measure passes.
• IPS has already announced $24 million in cuts and warns failure could trigger fiscal distress or state takeover.
• The four-year term is shorter than the usual eight-year referendum, giving IPEC room to revisit transportation and facilities plans.

What Did IPEC Decide on June 22?

On June 22, the mayor-appointed Indianapolis Public Education Corporation voted unanimously to send an operating referendum to voters in the November general election. Acting executive director Michael O'Connor recommended a rate of 37.2 cents per $100 of assessed property value—below IPS's initial 55-cent request but well above renewing the current 19.6-cent levy.

The board considered options ranging from no referendum to a full 55-cent ask. Member Hope Duke Star proposed 42 cents to limit IPS cuts, but that motion failed. O'Connor said the final rate balances school needs with taxpayer affordability at a time when housing costs are already straining household budgets.

How Would the Referendum Money Be Split?

Indiana's recent law requires traditional districts to share referendum proceeds with charter schools inside their boundaries. If voters approve the measure, roughly $87.8 million would flow in each year, with IPS and the charter sector each receiving about $43.9 million.

About 60 charter schools have signed up to participate. Charter proceeds would be distributed based on student enrollment, according to IPEC. Funding would roll out incrementally under state law, and this marks the first time independent charters—not just IPS Innovation Network schools—can access referendum dollars.

What Would the Referendum Cost Homeowners?

For property owners inside IPS boundaries, the tax hike is not abstract. IndyStar reports that approval would cost the owner of a $150,000 home—slightly above the district average—about $8.41 more per month than they pay today. Chalkbeat estimates roughly $221 in additional annual taxes on a typical $150,000 home compared with current bills.

That trade-off sits at the center of the debate. Supporters argue the levy is a lifeline for classrooms; critics worry about fixed-income households and renters whose landlords pass costs through. For broader context on how local tax votes affect household finances, see our Net Worth & Wealth coverage.

Why Does IPS Still Face Cuts If the Referendum Passes?

Superintendent Aleesia Johnson has warned that IPS will likely face fiscal distress and possible state takeover if the referendum fails. Yet passing it does not erase the district's deficit. IPS must still cut an estimated $20 million beyond the $24 million in reductions already announced as its 2018 referendum expires.

Further school consolidation could save up to $10 million, according to a Monday presentation. Johnson said IPS would approach remaining cuts with "thoughtfulness, intentionality, and open communication" while pressing for full state funding of special education and English-learner costs.

What Happens Next?

IPEC must submit its ballot language to the Indiana Department of Local Government Finance, which has until noon on August 1 to approve the question. The board is scheduled to meet again on July 22. If voters say yes, the new rate would take effect in 2027 and run for four years—shorter than the typical eight-year term.

Official details are posted on the Indianapolis Public Schools referendum page, while Chalkbeat's reporting breaks down how revenue would be divided between district and charter schools.