Court rules Indiana’s largest school district must offer buildings to charters for $1
The Indiana Court of Appeals ruled that Indianapolis Public Schools can sell one former school building to a nonprofit — but must make another building available to charter schools for $1 under state law.
The decision, issued Friday, is the latest development in a years-long legal battle between Attorney General Todd Rokita and IPS over whether the school system was exempt from a law that requires districts to make buildings available to charter schools for $1 before selling them to other buyers.
Under the court ruling, IPS may sell Francis Bellamy School 102 — a former preschool on the Far Eastside of the district — to a nonprofit that works with youth. In 2023, the district agreed to sell the building to VOICES, which currently rents the facility, for $550,000. The sale has been on hold during the legal case.
The district also sought to sell Raymond Brandes School 65, a former southside elementary school, but the court ruled that it must make the facility available to charter schools under the $1 law.
In a statement, IPS said it will go forward with the planned sale of the School 102 building and property to VOICES.
“IPS is pleased with the court’s ruling and grateful to continue its efforts to responsibly engage community stakeholders and local organizations to ensure district buildings are re-purposed to serve the needs of the IPS community,” the district said.
Rokita’s office expressed disappointment with the ruling.
“This outcome undermines the clear intent of the Indiana General Assembly to ensure that unused school buildings are made available to charter schools, providing more educational options for Hoosier families,” the statement said. It continued, “Our office will continue to advocate for policies that prioritize students and families, and we are reviewing all options to ensure the law is upheld in a manner consistent with the General Assembly’s intent.”
Some charter school supporters were glad to see the ruling.
“The Court’s ruling that former IPS school facilities such as Raymond Brandes School 65 must be sold according to the Dollar Law is a win for students, families, and our community,” said Brandon Brown, CEO of the Mind Trust, a nonprofit that supports charter schools in Indianapolis.
“We look forward to working expeditiously with proven, local charter operators that are interested in claiming unused and underutilized IPS buildings so these community assets can continue to be used for educational purposes,” Brown continued.
The backstory
The ruling stems from 2023 legislation that exempted school districts from the $1 law if they shared property tax money raised from referendums with charter schools.
Because IPS was sharing referendum revenue with affiliated charter schools, it argued it was exempt from the $1 law as a result of the 2023 change. And it attempted to sell the two buildings at the center of the case.
State officials disagreed, arguing IPS was misinterpreting the law and remained bound by the $1 requirement.
IPS filed a lawsuit in an attempt to legally establish whether it was exempt. The court ruled in IPS favor but it prevented the district from selling the property while the state appealed.
Soon after, IPS agreed to lease School 102 to VOICES, with the option for the nonprofit to purchase the facility once a final court order was issued.
Before the appeals court made a decision on whether IPS was exempt under the 2023 legislation, however, state lawmakers changed the law.
Lawmakers made a change in 2024, and now, districts are only exempt from the $1 law if the county auditor distributes referendum funding to charter schools through a process created in 2023. Because IPS shares funding through a district devised process, it was no longer exempt.
The Friday ruling concluded that because IPS and VOICES had already entered into a contract when lawmakers changed the rules in 2024, preventing the sale would violate Indiana’s constitution. That’s because the constitution bars any “law impairing the obligation of contracts.”
Because the other building — School 65 — was not under contract when the new law went into effect in 2024, the court ruled it must be disposed of following the rules of the $1 law.
Update: A statement from the Indianapolis Public Schools district was added to this story.
WFYI education reporter Sydney Dauphinais contributed to this story.
Contact WFYI education reporter Dylan Peers McCoy at [email protected].
