Indiana lawmakers’ Indianapolis schools overhaul would shift taxes, transportation and facilities oversight to a mayor-appointed board

A new governance structure for schools inside IPS boundaries

Indiana lawmakers have advanced a plan to restructure how public education is governed and supported within the Indianapolis Public Schools (IPS) boundary. House Bill 1423 would create the Indianapolis Public Education Corporation (IPEC), a new municipal entity designed to coordinate key systemwide functions across district-run schools, innovation network schools, and charter schools operating within IPS boundaries.

The proposal is built around a premise that Indianapolis operates as a single public education ecosystem for families, even though it is split among multiple operators and authorizers. Supporters of the bill argue that transportation, facilities planning, and comparable accountability measures have lagged behind the city’s choice-heavy landscape.

What the plan would control — and what it would not

Under the legislation, IPEC would assume major responsibilities currently tied to IPS as a school corporation, including authority over budgets and certain tax-related functions. The measure also establishes a timeline for creating a shared performance framework and for developing long-term plans for managing buildings and transportation.

• By March 31, 2026, IPEC would assume powers connected to budgets, tax rates, and tax levies currently exercised by IPS.
• By August 1, 2026, IPEC would be required to produce a progress report on creating a single performance framework, including processes addressing chronically low-performing schools and inefficient buildings.
• By November 30, 2026, IPEC would be required to complete a feasibility study on property management and a unified transportation plan.
• Beginning in the 2028–29 school year, IPEC would take on management and operations of school property within IPS boundaries and implement unified transportation for participating schools.

The bill preserves school-level control over academics and staffing. District and charter schools would keep authority over curriculum and personnel decisions. The legislation also includes an opt-out pathway for school leaders regarding IPEC taking control of their facilities.

Mayor-appointed board composition and deadlines

IPEC would be governed by a nine-member board appointed by the mayor. The structure is intended to include representation from both sectors and community expertise:

• Three IPS board members
• Three charter school leaders
• Three at-large members with relevant expertise, such as logistics, facilities, or community support

If enacted, the law sets near-term deadlines for appointments and the launch of initial governance functions in 2026, followed by staged implementation culminating in the 2028–29 operational start for property and transportation systems.

Equal treatment of IPS and charters: where the bill aligns and where it diverges

The measure aims to standardize services that affect families across school types, particularly transportation and access to facilities planning. At the same time, it changes how decision-making power is distributed by shifting core operational and financial authorities away from the elected IPS board and toward a mayor-appointed entity.

Key equity questions center on whether unified services and performance measures produce consistent expectations for all public schools, while governance changes reduce direct voter control over major operational and tax decisions.

Legislative status

HB 1423 has moved through the General Assembly during the 2026 session and advanced to the final stage of state approval. If signed into law, the first major milestones would occur in March 2026, with additional planning requirements due later in 2026 and full operational implementation targeted for the 2028–29 school year.