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Indy Chamber recommends major cuts and teacher raises for IPS district

INDIANAPOLIS (WISH) — Salary raises for teachers, elimination of bus services for high school students and property tax increases are all proposals to reduce the Indianapolis Public School district’s multi million dollar deficit.

The proposals were made by Indy Chambers after a nearly four month long financial and operational assessment of IPS. The study was completed by Indy Chamber and its consultants; Faegre Baker Daniel Consulting and Policy Analytics, LLC.

The main objective: take care of IPS’ $319 million projected deficit over the next eight years. 

“We came up with a model that was realistic and yet ambitious when it comes to achieving particular efficiency savings,” said Faegre Baker Daniels Senior Director Michael Brink. 

Cuts were a big part of the plan; reducing central office staff by fifty percent, reducing custodial costs and eliminating high school busing are just some of the proposals. 

“The chamber proposal includes that IPS, after the next two years, would be done with busing high schools students. High school students would be responsible using Indy Go, using other means of getting to high school on their own,” said Brink.

Eliminating high school busing would save the district $126 million over eight years by getting rid of 1/3 of the busing. The plan also calls for reducing teachers by twelve percent through attrition. But, it would increase teacher and principal salaries, setting aside $243 million for raises. 

“This is about finding ways of substantially increasing a double digit increase, 16 percent increases or so, in the amount of pay that teachers get and that principals get,” said Brink.

But, it would cost residents within the district. The plan would require a $100 million operational referendum as well as a $52 million capital referendum. It would raise, on average, property taxes by 5.7 percent. Currently IPS is proposing a $52 million capital referendum and a $528 million referendum. 

IPS recognizes its need for drastic changes, but doesn’t agree with Indy Chambers’ analysis in its entirety. 

“There are some assumptions that are embedded within their recommendation and analysis that we don’t fully agree with, some of the recommendations regarding an immediate shift on transportation, trimming of seats, and the like. But one of the things that we do agree with, in theory, and I think is really indicative of the priorities of the district, is how do we invest more intentionally in our people, in our talent, particularly our teachers,” said IPS Chief of Staff Ahmed Young. 

IPS is holding an operating referendum public hearing on July 17th. If you’d like to read the Indy Chamber’s full analysis, click here.