A new state-created board reviewed a $3.2 million budget plan for 2027 on Monday, October 19, according to Chalkbeat and WFYI. The board is the Indianapolis Public Education Corporation, or IPEC. State lawmakers created it this year. It will oversee buildings and transportation for Indianapolis Public Schools and charter schools.
Most of the money would go to outside help. The plan sets aside more than $1.9 million for consulting fees and outside expertise, according to Chalkbeat. It sets aside $1 million for staff salaries and benefits. It sets aside $300,000 for a physical office. Those three parts add up to the $3.2 million total. The $3.2 million is the estimated 3% of local property tax revenue that the agency can keep for its own costs under the new state law, WFYI reported.
The consulting cost drew the sharpest public criticism. Indianapolis Public Schools is under financial strain. WFYI reported that the district faces a $20 million deficit. That gap is tied to falling enrollment, a rule to share more property taxes with charter schools, and state property tax changes that limit local revenue. The IPEC budget is separate from the district's money. The dossier does not establish that IPEC's spending would add to or ease that deficit.
Lindsey Cornett questioned the spending during public comment. She is running for the District 4 school board seat. "That's a significant amount of money when our public schools are in a financial crisis," she said, according to Chalkbeat. She also noted that the mayor had been tasked with appointing experts to the board, WFYI reported. Rausch said the consulting money would help the board plan for school performance, transportation, and enrollment, according to Chalkbeat.
The agency has only two full-time staff right now, WFYI reported. They are executive director Karega Rausch and executive vice president Andrew Strope. Their salaries are $285,000 and $250,000. At least two more full-time staff could be hired next year, Rausch said. Right now, IPEC staff work in the Indianapolis City-County Building at no cost. Rausch said the agency would like to keep that space to save money while it looks for a long-term home.
The board also voted to keep using consultant Mike O'Connor of the Bose Public Affairs Group, according to WFYI. He had served as the agency's interim executive director. The new contract lowers his monthly pay from $40,000 to $25,000 through December.
The board did not challenge two recent moves by the school district, Chalkbeat reported. The district plans to leave the shared enrollment system Enroll Indy. It also plans to revisit its contracts with Innovation Network charter schools after this school year. Charter leaders were outraged by both changes. Chalkbeat reported the tension could make IPEC's work harder in the months ahead. State law gives IPEC the power to run a unified enrollment system for the schools it oversees.
IPEC members also discussed the school referendum on the ballot next month. WFYI reported the measure asks voters to approve a property tax increase. It would raise $95 million a year for operating costs over the next four years. The money would be split roughly between IPS and about 60 charter schools. The agency would not collect any revenue from that referendum if voters approve it. Rausch said his team is focused on helping it pass. Board Chairman David Harris called it a top priority.
Rausch presented the budget. He said he will discuss it again by the end of the year. But he did not promise to share more details before the board's next meeting on October 29. The board is expected to vote on the budget that day. "I want to be careful not to overpromise, but certainly strategic conversations with the board will happen," he said, according to Chalkbeat. IPEC appointed Rausch as executive director in July, Chalkbeat reported. The agency is scheduled to take control of buildings and run a unified transportation plan in 2028, WFYI reported.