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Indianapolis Public Schools plans to cut $7 million from school budgets next school year as it faces an impending financial shortfall.

The cuts could impact anything from staffing to school supply budgets as the district projects ending the year with a $40 million cash deficit that will grow in the coming years without additional voter-approved funding. The school board will vote on the budget for next school year on March 26.

Superintendent Aleesia Johnson said in a video on Thursday that the proposed budget cuts would affect each school differently, as principals made “tough budget choices” for their schools over the past several weeks.

“Because every school is unique and factors like academic programming, enrollment, and student needs shape a school’s budget, there’s not a one-size-fits-all summary of changes happening across our schools for next year,” Johnson said.

Johnson didn’t list specific cuts in her announcement, and the IPS board won’t vote on the proposed reductions until March 26. But at least two schools have already notified parents about how they are planning to change staffing for next year.

The IPS website is also listing fewer schools for next school year that offer prekindergarten than offered it this year. Johnson did not mention cuts to pre-K services in her Thursday announcement. The district did not respond to requests for comments about whether there will be fewer pre-K sites next year.

The announcement comes as IPS faces increasing financial pressure from a variety of factors: Recent state property tax reform, and a requirement to share property taxes with charter schools, will result in less funding. The district will run out of money if voters don’t pass an operating referendum in November. And like districts nationwide, IPS is grappling with student enrollment declines that affect budgets, which are heavily reliant on per-pupil funding from the state.

Certain teachers to be shared across IPS schools

Before Johnson’s announcement Thursday, some schools announced that they would share teachers designated as “specials” or “studio” — those teaching art or music, for example — with another school next school year. The district adopted the move last year at some schools despite parents’ protests.

Principals at Butler Lab School 55 and Center for Inquiry School 27 told parents over the last few weeks that the specials split would affect their schools next year due to declining enrollment.

“While the minutes of the time your children are in Studio class would not be different from this year, it will be different in timing (days of the week),” Butler Lab 55 Principal Sarah Clark said in an email to families last month.

Clark said the school would also share its English as a New Language teacher with another school in the district, since the number of students identified as English language learners has decreased in the last two years.

The family and community engagement liaison, she said, would also become a part-time position.

Center For Inquiry School 27, meanwhile, would share its specials teachers with Sidener Academy for High Ability students, Principal Hilary Duvall said at a parent-teacher-student association meeting this week.

Johnson said that she will share district-level budget cuts at some point in the future.

“Please know that as we consider decisions to meet our budget, what will remain my number one priority is our students’ access to a high-quality and robust student experience,” she said.

List of IPS prekindergarten sites grows smaller

At least five schools that offer prekindergarten this year are not listed on the district’s website as offering prekindergarten for 2026-27.

The district’s prekindergarten population dropped from 836 last school year to 691 this school year, state enrollment records show. Expanding prekindergarten sites was a core tenet of the district’s Rebuilding Stronger reorganization proposal.

Only one site expanded under Rebuilding Stronger — Garfield School 31 — is not listed as a prekindergarten site for next year, according to an analysis of the district’s published list for next school year and the schools that currently offer prekindergarten.

The district began charging for prekindergarten this school year, citing changes to state funding for prekindergarten and legislative changes that have affected the district’s finances.

Amelia Pak-Harvey covers Indianapolis and Lawrence Township schools for Chalkbeat Indiana. Contact Amelia at apak-harvey@chalkbeat.org.

Chalkbeat is a nonprofit news site covering educational change in public schools.