Funding method endangers Mayor Ballard's pre-K proposal

A City-County Council Democrat and aides to Republican Mayor Greg Ballard are seeking a way to save the mayor's early childhood education plan for low-income children.

The negotiations come as Ballard's funding proposal for the program appears headed for defeat at a council committee meeting Tuesday night.

The Democrat-controlled council is expected to reject paying for pre-kindergarten by eliminating a local property tax credit.

Democratic Councilman John Barth said he is trying to salvage a compromise that mollifies both sides. He has been in talks with the administration to find another way to fund the five-year, $50 million initiative that would provide pre-school for thousands of 4-year-olds.

The battle over the ambitious plan and how it would be paid for has raged since Ballard proposed it in July. Some observers see political gamesmanship at play, with the 2015 mayoral election quickly approaching and Democrats and Republicans eager to assign blame for derailed policies or claim credit for programs that are implemented.

Barth said about four or five funding alternatives have been proposed for the pre-K program, but he declined to give details. Though his party opposes paying for the program with the tax credit, some members think it is a worthy program that should be pursued, if possible, Barth said.

"There is some support on the council floor for a version of the pre-K program," Barth said. "What exactly it will look like is unknown so far, but the goal is to serve the same amount of children."

Mayoral spokesman Marc Lotter confirmed that proposals that don't touch the homestead credit are being discussed.

"The bottom line for the mayor is making sure pre-K is approved so we can get going on getting these children in school by next fall," Lotter said.

Councilwoman Angela Mansfield, chair of the Administration and Finance Committee, said Barth was negotiating on his own and not on behalf of the Democrats as a whole. She said there was no guarantee a compromise would get widespread Democratic support.

"There are Democrats who just think funding education is the responsibility of the state and school districts," she said. "There are priorities like police, animal care and parks, and we shouldn't be reaching into these other areas until we get our own house in order."

Ballard's plan

Ballard presented the early education proposal as part of a larger crime prevention plan, contending that early schooling would reduce violence in the long run.

He would make high-quality preschool available to 1,300 4-year-olds in low-income Indianapolis families for each of the next five years. The city would provide half of the $50 million through the elimination of the tax credit, while private donations would provide the other $25 million. Eliminating the tax credit would cost most of the city's homeowners about $22 a year.

Councilman Ben Hunter, a Republican committee member who favors Ballard's plan, said he would consider an alternative funding proposal if Barth presents one.

"The votes aren't there to pass it as is (Tuesday), but if we can find another way, let's look at it," Hunter said. "Pre-K is a quality-of-life matter that could end up reducing crime. It's the kind of holistic approach to crime we need."

Hunter said he has received about 50 emails in the past week from supporters of the proposal, as has Republican Jack Sandlin, who also favors the mayor's plan.

"It would be unfortunate if my colleagues on the opposite side of the aisle kill this altogether," Sandlin said.

Dems' opposition

Some community organizers said they were perplexed why consensus on the program was proving so difficult.

The Ten Point Coalition, a faith-based anti-crime group, supports Ballard's plan as a way to address the root causes of violence, said the Rev. Charles Harrison, the group's president.

He said Democratic opposition is "concerning," characterizing it as politically motivated.

"I'm a Democrat, and normally we support this," Harrison said. "That's one of the platforms that Democrats support. I don't understand why they're not being supportive of this other than it being political — my own party."

He said his group's efforts to rally support have done little to persuade opponents.

"It seems to be falling on deaf ears," he said. "I think because we have a mayoral election next year, and I don't think they want to (let the mayor) do anything that will be viewed positively by the voters."

Though the 2015 mayoral election is more than 13 months away, some Democrats have already begun uniting around former U.S. Attorney Joe Hogsett, who is expected to announce his candidacy soon. Many see him as the best chance to defeat Ballard should the mayor run for a third term. Ballard has not announced his plans.

Andy Downs, director of the Mike Downs Center for Indiana Politics, said there is "undoubtedly" some partisanship at play. "That's to be expected, especially when one party attempts to take over an issue that another party is known for," such as education, he said.

With an election year looming, it's not clear that either side will be in the mood for compromise.

"There is no doubt that timing is going to be a bit of an issue here," Downs said.

But, he added, the rift between Ballard and the council isn't entirely political. He said they have legitimate policy differences, especially over how to fund new initiatives.

Township schools

There is also resistance to Ballard's plan from some of the township school districts because they would lose an estimated $3.9 million if the homestead credit were eliminated. The schools are reimbursed by the city for the savings that homeowners reap through the credit.

Democratic state Rep. Ed DeLaney, the only declared candidate for mayor, has criticized Ballard's plan because he said it robs schools of scarce funds and could hurt schoolchildren in the end.

In Perry Township, Superintendent Thomas Little said the district's share is equivalent to six teacher positions.

The loss in revenue would be weighed against a potential increase from preschool funding, which would depend on how many students choose to enroll in a district's program.

But in Wayne Township, Superintendent Jeff Butts wrote in a letter last week to the City-County Council that preschool money wouldn't make up for the lost revenue.

He wrote that while he appreciated "advocacy for the greater good, I cannot support eliminating a significant revenue source for our schools without a replacement."

Decatur Township Schools still backs the mayor's proposal, the district said in a statement, despite facing financial loss: "While this plan will impact our district financially, we view it as an investment in the early education of our students."

Last month, Indianapolis Public Schools Superintendent Lewis Ferebee helped Ballard publicly promote his proposal, saying early childhood education would pay off with lower drop-out rates and higher graduation rates.

Still, IPS stands to see $800,000 disappear with the tax credit.

If the credit is eliminated, Ferebee said, IPS will make the necessary budget adjustments.

"Sometimes it becomes necessary to alter plans for the greater good of the community, and IPS is prepared to do what is needed," he said in a written statement. "We're open to support solutions to the disturbing trend of violence in our city."

Star reporter Stephanie Solis contributed to this story. Call Star reporter John Tuohy at (317) 444-6418. Follow him on Twitter: @john_tuohy.