State funding changes could lead IPS to tap rainy day fund

PHOTO: Scott Elliott
The IPS school board approved a change in the rules for a rainy day fund that made $21 million more accessible.

Indianapolis Public Schools can now crack open a previously restricted rainy day fund if it needs money to fill budget gaps — a move the school board could soon need to make.

The board today approved a change in the purpose of the fund, which had outdated rules that kept the district from accessing about $21 million. At the same time, IPS is looking for ways to fill a funding gap for the upcoming school year caused by legislative changes, which will cost millions in state funding, and any enrollment losses.

“How do we cover that deficit for this year?” Deputy Treasurer Paul Carpenter Wilson said. “That’s the question. This is a first step to make funds available for any funding shortfall.”

The rainy day fund had outdated rules requiring it be used either for desegregation payments, which the district no longer makes, or to cover pension obligations that no longer apply.

Superintendent Lewis Ferebee told the board on Tuesday he could be back soon with a proposal to use money from the fund.

Why? One possible reason is that the district’s income is dropping.

For the first half of 2015, IPS’s general fund income fell by 4.3 percent. Part of the problem is a continuing drop in state aid.

The district expects a tiny bump up in per-student state aid over the two next years under the state budget approved in April, but changes to the way the state calculates extra aid for poor students will cost the district big money.

IPS officials in April projected a loss of $6.5 million in state aid overall for the next two years if its enrollment stays steady. The loss could be much bigger if fewer students enroll. The district also lost nearly $1.4 million in federal Title 1 poverty aid this year after changes in the U.S. Census count of families in poverty.

The district is shifting from a calendar year budget to a school year budget that will run July 1 to June 30 for the upcoming year. Its $116 million general fund spending for the first half of 2015 slightly outpaced its income by about $761,000. But it began a new budget year this month.

In March, district officials said the 2015-16 general fund budget for day-to-day expenses would closely match income to expenses, and therefore would not produce a surplus as it did the past two years. IPS had consecutive surpluses of $4 million and $8 million.

School officials don’t expect to see enrollment grow, as it did in 2011-12 and 2012-13, or fall dramatically like it did for several years before that. It will most likely remain steady this year.

Despite the thin financial margins, Ferebee continued to promise teachers a raise will result from negotiations with the union that are soon to begin. Teacher raises remain a priority for the district no matter what its financial condition, he said.

“Whether there’s room or not, there are going to be teacher raises,” Ferebee said. “We need to be more competitive with compensation.”

Another potential budget problem is a drop in property tax collections, which pay for busing, building repairs and other costs outside of the classroom.

IPS already collects a paltry amount of the property taxes it is due: 47 percent last year. But that number dropped to 45.3 percent for the first half of 2015. District officials said they are asking county officials to help them figure out why.

The board also approved the hiring of a new treasurer. Weston Young, a financial adviser based in Zionsville who has a fourth-grader in IPS and last year was a member of IPS’s budget development committee, will be the district’s chief financial manager. He started work today.


call out

Our readers had a lot to say in 2017. Make your voice heard in 2018.

PHOTO: Chris Hill/Whitney Achievement School
Teacher Carl Schneider walks children home in 2015 as part of the after-school walking program at Whitney Achievement Elementary School in Memphis. This photograph went viral and inspired a First Person reflection from Schneider in 2017.

Last year, some of our most popular pieces came from readers who told their stories in a series that we call First Person.

For instance, Carl Schneider wrote about the 2015 viral photograph that showed him walking his students home from school in a low-income neighborhood of Memphis. His perspective on what got lost in the shuffle continues to draw thousands of readers.

First Person is also a platform to influence policy. Recent high school graduate Anisah Karim described the pressure she felt to apply to 100 colleges in the quest for millions of dollars in scholarships. Because of her piece, the school board in Memphis is reviewing the so-called “million-dollar scholar” culture at some high schools.

Do you have a story to tell or a point to make? In 2018, we want to give an even greater voice to students, parents, teachers, administrators, advocates and others who are trying to improve public education in Tennessee. We’re looking for essays of 500 to 750 words grounded in personal experience.

Whether your piece is finished or you just have an idea to discuss, drop a line to Community Editor Caroline Bauman at

But first, check out these top First Person pieces from Tennesseans in 2017:

My high school told me to apply to 100 colleges — and I almost lost myself in the process

“A counselor never tried to determine what the absolute best school for me would be. I wasted a lot of time, money and resources trying to figure that out. And I almost lost myself in the process.” —Anisah Karim     

Why I’m not anxious about where my kids go to school — but do worry about the segregation that surrounds us

“In fact, it will be a good thing for my boys to learn alongside children who are different from them in many ways — that is one advantage they will have that I did not, attending parochial schools in a lily-white suburb.” —Mary Jo Cramb

I covered Tennessee’s ed beat for Chalkbeat. Here’s what I learned.

“Apathy is often cited as a major problem facing education. That’s not the case in Tennessee.” —Grace Tatter

I went viral for walking my students home from school in Memphis. Here’s what got lost in the shuffle.

“When #blacklivesmatter is a controversial statement; when our black male students have a one in three chance of facing jail time; when kids in Memphis raised in the bottom fifth of the socioeconomic bracket have a 2.6 percent chance of climbing to the top fifth — our walking students home does not fix that, either.” —Carl Schneider

I think traditional public schools are the backbone of democracy. My child attends a charter school. Let’s talk.

“It was a complicated choice to make. The dialogue around school choice in Nashville, though, doesn’t often include much nuance — or many voices of parents like me.” —Aidan Hoyal

I grew up near Charlottesville and got a misleading education about Civil War history. Students deserve better.

“In my classroom discussions, the impetus for the Civil War was resigned to a debate over the balance of power between federal and state governments. Slavery was taught as a footnote to the cause of the war.” —Laura Faith Kebede

Weekend Reads

Need classroom decor inspiration? These educators have got you covered.

This school year, students will spend about 1,000 hours in school —making their classrooms a huge part of their learning experience.

We’re recognizing educators who’ve poured on the pizazz to make students feel welcome. From a 9th-grade “forensics lab” decked out in caution tape to a classroom stage complete with lights to get first graders pumped about public speaking, these crafty teachers have gone above and beyond to create great spaces.

Got a classroom of your own to show off? Know someone that should be on this list? Let us know!

Jaclyn Flores, First Grade Dual Language, Rochester, New York
“Having a classroom that is bright, cheerful, organized and inviting allows my students to feel pride in their classroom as well as feel welcome. My students look forward to standing on the stage to share or sitting on special chairs to dive into their learning. This space is a safe place for my students and we take pride in what it has become.”

Jasmine, Pre-K, Las Vegas, Nevada
“My classroom environment helps my students because providing calming colors and a home-like space makes them feel more comfortable in the classroom and ready to learn as first-time students!”


Oneika Osborne, 10th Grade Reading, Miami Southridge Senior High School, Miami, Florida
“My classroom environment invites all of my students to constantly be in a state of celebration and self-empowerment at all points of the learning process. With inspirational quotes, culturally relevant images, and an explosion of color, my classroom sets the tone for the day every single day as soon as we walk in. It is one of optimism, power, and of course glitter.”

Kristen Poindexter, Kindergarten, Spring Mill Elementary School, Indianapolis, Indiana
“I try very hard to make my classroom a place where memorable experiences happen. I use songs, finger plays, movement, and interactive activities to help cement concepts in their minds. It makes my teacher heart so happy when past students walk by my classroom and start their sentence with, “Remember when we…?”. We recently transformed our classroom into a Mad Science Lab where we investigated more about our 5 Senses.”


Brittany, 9th Grade Biology, Dallas, Texas
“I love my classroom environment because I teach Biology, it’s easy to relate every topic back to Forensics and real-life investigations! Mystery always gets the students going!”


Ms. Heaton, First Grade, Westampton, New Jersey
“As an educator, it is my goal to create a classroom environment that is positive and welcoming for students. I wanted to create a learning environment where students feel comfortable and in return stimulates student learning. A classroom is a second home for students so I wanted to ensure that the space was bright, friendly, and organized for the students to be able to use each and every day.”

D’Essence Grant, 8th Grade ELA, KIPP Houston, Houston, Texas
“Intentionally decorating my classroom was my first act of showing my students I care about them. I pride myself on building relationships with my students and them knowing I care about them inside and outside of the classroom. Taking the time to make the classroom meaningful and creative as well building a safe place for our community helps establish an effective classroom setting.”


Jayme Wiertzema, Elementary Art, Worthington, Minnesota
“I’m looking forward to having a CLASSROOM this year. The past two years I have taught from a cart and this year my amazing school district allowed me to have a classroom in our school that is busting at the seams! I’m so excited to use my classroom environment to inspire creativity in my students, get to know them and learn from their amazing imaginations in art class!”


Melissa Vecchio, 4th Grade, Queens, New York
“Since so much of a student’s time is spent inside their classroom, the environment should be neat, organized, easy to move around in but most of all positive. I love to use a theme to reinforce great behavior. I always give the students a choice in helping to design bulletin boards and desk arrangements. When they are involved they take pride in the classroom, and enjoy being there.”