The Indianapolis Public Schools board has approved a roughly $490 million operating budget for the 2026–27 school year, including $7m in school-level cuts, as the district faces a projected deficit, declining enrollment, and reduced revenue from property tax reforms. The budget introduces cost-saving measures such as sharing specialist teachers across schools and reducing prekindergarten sites, prompting criticism from educators and parents over transparency, job losses, and communication. Despite the cuts, IPS expects to end the year with a $5m deficit, with further reductions likely unless voters approve a new referendum, following the final $24m installment from a 2018 tax measure. Financial pressures are compounded by requirements to share property tax revenue with charter schools, which are set to receive about $13m, alongside rising costs in transportation, administration, and staffing, while state per-pupil funding remains below inflation-adjusted levels.
