Future of Schools

Indianapolis struggles to balance how much money schools need with what people will pay

PHOTO: Dylan Peers McCoy
Lewis Ferebee

Without a massive influx of cash from taxpayers, Indianapolis’ largest school district could be in dire financial straits. But the fate of the referendums asking voters for more money is in limbo.

Even as the Indianapolis Public Schools board revealed plans to reduce how much money it is seeking from voters, the administration portrayed the district’s financial future as precarious. During a board discussion Thursday, officials underscored how critical it would be for the tax increase to pass. It’s unclear, however, whether the district will get the extra cash it needs to avoid making painful cuts.

Critics have suggested the request — $936 million over eight years — is too high and that the district has not offered enough detail on how the money raised would be spent. With only tepid support for the tax plan, district leaders appear poised to reduce the amount they are seeking. That move could win over new allies, but it could also undercut their efforts to gain support.

Next year, the administration is expecting spending could outpace income by more than $45 million. The plan for filling that gap hinges on raising more than $46 million from a referendum that will go before voters in May.

Without that extra money, Superintendent Lewis Ferebee said, the district would have to burn through its savings or make vast cuts that could include freezing teacher pay, cutting school budgets, and reducing transportation.

The district would need to begin making cuts immediately, said board member Kelly Bentley. “It’s just going to get worse the next year, and the next year,” she added.

The district’s future will look brighter if leaders are able to win public support for more funding, although it’s no longer clear how much money they will ask for. The original plan, which was approved by the board in December, includes two referendums to raise property taxes. One would ask voters to give the district as much as $92 million more per year for eight years for operating expenses such as teacher pay. Another measure, which the district is not expected to change, would pay for $200 million in improvements to buildings.

Ferebee said the amount he originally proposed was based on what the district needs rather than what would be politically feasible. In the face of community feedback, however, the district is crafting a plan that would have a lower price tag. Next, the district will need to explain what services will be cut to keep down costs, he said.

“I anticipate people will want to know, ‘what are the tradeoffs?’ ” Ferebee said. “We owe it to the community to provide that explanation, and we will.”

Indiana districts have pursued more than 160 property tax referendums since 2008, when state lawmakers created the current school funding system. About 60 percent of those referendums have been successful, according to data from Indiana University’s Center for Evaluation and Education Policy.

Stephen Hiller, who has been studying referendums with the center for nearly a decade, said that it’s likely that many districts have had to reconcile how much money they would ideally want with how much taxpayers might be willing to pay. But that conversation likely happens before a referendum is announced and approved by the board.

“I think IPS has it a little more difficult here that it’s happening in the open after they’ve approved it in a very public way,” he added.

School board president Michael O’Connor said that the district’s willingness to change the plan is a sign that local government works.

“We live in the community within which we serve, and all of us have heard pretty plainly and clearly, ‘we think that number might be too big,’ ” he said. “We are being responsive to our constituents.”

Reducing the referendum could be enough to win over many supporters. Several groups that have supported the current administration in the past have not yet taken a stand.

Tony Mason of the Indianapolis Urban League said in a statement that the district needs more money to pay high-quality teachers and meet the needs of its diverse students. But he raised concerns about the potential impact of the tax increase on residents with fixed- or low-incomes.

“IPS will still need to continue in its efforts to make the case for the substantial amount it is requesting,” Mason said. “The IUL is an avid supporter of education, particularly for urban schools that struggle with unique challenges.”

Chelsea Koehring, who taught in the district and now has two children at the Butler Lab School, shares the view that the district needs more money. But leaders have not offered enough details about how the money would be spent, she said, and changing the request raises red flags.

“People, you should’ve had this together before you asked,” she said. “Lowering it at this point — I don’t know that that’s going to instill confidence in anyone that they have any clue what they are doing.”

Correction: February 17, 2018: This story has been corrected to reflect that Indiana districts have pursued more than 160 property tax referendums since 2008. Some districts have held multiple referendums.

The New Chancellor

Tell us: What should the new chancellor, Richard Carranza, know about New York City schools?

PHOTO: Christina Veiga
A student at P.S. 69 Journey Prep in the Bronx paints a picture. The school uses a Reggio Emilia approach and is in the city's Showcase Schools program.

In a few short weeks, Richard Carranza will take over the nation’s largest school system as chancellor of New York City’s public schools.

Carranza, who has never before worked east of the Mississippi, will have to get up to speed quickly on a new city with unfamiliar challenges. The best people to guide him in this endeavor: New Yorkers who understand the city in its complexity.

So we want to hear from you: What does Carranza need to know about the city, its schools, and you to help him as he gets started April 2. Please fill out the survey below; we’ll collect your responses and share them with our readers and Carranza himself.

The deadline is March 23.

buses or bust?

Mayor Duggan says bus plan encourages cooperation. Detroit school board committee wants more details.

PHOTO: Denver Post file
Fourth-graders Kintan Surghani, left, and Rachel Anderson laugh out the school bus window at Mitchell Elementary School in Golden.

Detroit’s school superintendent is asking for more information about the mayor’s initiative to create a joint bus route for charter and district students after realizing the costs could be higher than the district anticipated.

District Superintendent Nikolai Vitti told a school board subcommittee Friday that he thought the original cost to the district was estimated to be around $25,000 total. Instead, he said it could cost the district roughly between $75,000 and a maximum of $125,000 for their five schools on the loop.

“I think there was a misunderstanding….” Vitti said. “I think this needs a deeper review…The understanding was that it would be $25,000 for all schools. Now, there are ongoing conversations about it being $15,000 to $25,000 for each individual school.”

The bus loop connecting charter and district schools was announced earlier this month by Mayor Mike Duggan as a way to draw kids back from the suburbs.

Duggan’s bus loop proposal is based on one that operates in Denver that would travel a circuit in certain neighborhoods, picking up students on designated street corners and dropping them off at both district and charter schools.

The bus routes — which Duggan said would be funded by philanthropy, the schools and the city — could even service afterschool programs that the schools on the bus route could work together to create.

In concept, the finance committee was not opposed to the idea. But despite two-thirds of the cost being covered and splitting the remaining third with charters, they were worried enough about the increased costs that they voted not to recommend approval of the agreement to the full board.  

Vitti said when he saw the draft plan, the higher price made him question whether the loop would be worth it.

“If it was $25,000, it would be an easier decision,” he said.

To better understand the costs and benefits and to ultimately decide, Vitti said he needs more data, which will take a few weeks. 

Alexis Wiley, Duggan’s chief of staff, said the district’s hesitation was a sign they were performing their due diligence before agreeing to the plan.

“I’m not at all deterred by this,” Wiley said. She said the district, charters, and city officials have met twice, and are “working in the same direction, so that we eliminate as many barriers as we can.”

Duggan told a crowd earlier this month at the State of the City address that the bus loop was an effort to grab the city’s children – some 32,500 – back from suburban schools.

Transportation is often cited as one of the reasons children leave the city’s schools and go to other districts, and charter leaders have said they support the bus loop because they believe it will make it easier for students to attend their schools.

But some board members had doubts that the bus loop would be enough to bring those kids back, and were concerned about giving charters an advantage in their competition against the district to increase enrollment.

“I don’t know if transportation would be why these parents send their kids outside of the district,” Angelique Peterson-Mayberry said. “If we could find out some of the reasons why, it would add to the validity” of implementing the bus loop.

Board member LaMar Lemmons echoed other members’ concerns on the impact of the transportation plan, and said many parents left the district because of the poor quality of schools under emergency management, not transportation.

“All those years in emergency management, that drove parents to seek alternatives, as well as charters,” he said. “I’m hesitant to form an unholy alliance with the charters for something like this.”