Indianapolis Schools Seek State Help for Special Ed Gap
Indianapolis Public Schools will ask the Indiana General Assembly to close a $24 million special education funding gap.
Updated on Nov. 11, 2026 in Special Education
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Indianapolis Public Schools plans to ask the Indiana General Assembly to close a $24 million special education funding gap. The request comes as the district prepares to address a $20 million deficit for the next school year.
Why it matters
The gap reflects a state funding formula that provides less money than the cost of serving students with disabilities, leaving the district to cover the difference. Lawmakers' shift toward base per-pupil funding and away from complexity funding is central to the district's request.
Indianapolis Public Schools enrolls about 3,600 special education students, or 18% of enrollment, in its directly managed schools. The district's $24 million special education gap is set against a $20 million deficit for the next school year, and the state's response remains unresolved.
The players
Indianapolis Public Schools
The Indianapolis-based district serves students across the city and operates a network of directly managed and Innovation schools.
Aleesia Johnson
A public official whose role in the district's funding request is described in the source reporting.
Rachel Santos
A public official whose role in the district's funding request is described in the source reporting.
The details
The district wants lawmakers to change the complexity funding formula, which currently ties extra money to the share of students receiving SNAP, TANF or foster care services, to include English Language Learners. IPS is also weighing charges to its Innovation schools for certain services, though a 2024 state law caps those charges at what each school receives in local property taxes.
Timeline
2024: State law limited what IPS can charge Innovation schools for services.
November 2026: IPS plans to announce school closures to address its deficit.
Early January 2027: The 2027 legislative session begins and sets the two-year budget.
Special Education Funding Landscape
Indiana's 2024 law capping what districts can charge Innovation schools for services constrains how IPS can recover special education costs. The district's request to change the complexity funding formula seeks to address a shortfall that the law leaves unresolved.
Families of special education students in Indianapolis could see changes to the services their schools can afford if the state does or does not change the funding formula. Parents should watch the January 2027 legislative session and any November school closure announcements for effects on their children's schools.
The takeaway
Special education funding in Indianapolis depends on decisions made in Indiana's statehouse rather than on the district alone. Families should follow the 2027 session closely, since its outcome will shape which services remain available in local schools.
What happens next
The 2027 legislative session begins in early January, when lawmakers take up the two-year budget and the district's funding request. IPS plans to announce school closures in November 2026 to address its deficit.
Further reading
For more on how districts fund services for students with disabilities, see Special Education coverage.
Source note: This article includes information reported by WFYI Public Media.
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