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Committee advances bill to create Indianapolis Public Education Corporation, authorizes narrow referendum window
Summary
The House Ways and Means Committee passed HB 1423, which would form a municipal corporation to coordinate school facilities and transportation across the Indianapolis Public Schools footprint; members debated referendum timing and charter funding before the bill passed 14–8.
Representative Behning told the committee HB 1423 would implement recommendations from the Indianapolis Local Education Alliance (ILEA) report and create a municipal corporation — the Indianapolis Public Education Corporation — to coordinate transportation and create a single facilities authority for the Indianapolis school city. He said the panel’s report (available through LSA) ran about 500 pages and the final proposal passed the alliance by an 8–1 vote.
The bill would repeal the 'dollar law' within the IPS footprint and let the new municipal corporation study and recommend facility decisions, develop performance metrics for academic and fiscal use, and report back to the legislature on progress. Behning described the corporation’s role in pooling capital and debt service across charter and traditional public schools in the school-city boundaries.
Behning introduced amendment 16, presented by bond counsel, which would let IPS’s board vote on an operating referendum during a limited window (March 31–July 1) before the municipal corporation authorizes a final referendum. He said IPS faces a projected fiscal 'cliff' the district’s CFO estimated would hit in January 2027, and bond counsel recommended the timing change to protect bondholders and permit needed revenue actions.
Representative Pryor asked whether charter schools would receive referendum funds; Behning said charters would receive a pro rata share of any referendum proceeds based on enrollment, as contemplated in SCA 1 language. Representative Delaney pressed definitional points, noting the bill uses the term 'school city' to mean IPS; Behning pointed to the statutory definition and deferred detailed drafting questions to staff.
Representative Porter asked whether the proposal should apply beyond the IPS footprint to all Marion County schools; Behning said the alliance’s work and the bill intentionally target the IPS district to create parity within that defined area, including sharing capital project debt service through the municipal corporation.
The committee took the amendment by consent, moved to 'pass as amended,' and after a roll call the bill passed out of committee by a 14–8 vote. The committee record shows further reporting requirements and staged implementation dates to allow studies and follow-up.
The bill now moves to the next legislative stage for floor consideration. The committee vote and the amendment text will be part of the session record for any further floor amendments or fiscal analysis.
