The Indianapolis Public Schools board last week approved a plan to lay off 163 employees to help close a $27 million shortfall.

The layoffs include 94 teachers, who will lose their positions in part due to the state’s plan to take over four of the district’s struggling schools next year. Indiana has tapped private companies to run the four schools, which include three high schools and a middle school.

The cuts are due in part to the state’s three-year-old law capping property taxes, school officials said in public meetings last week. The IPS’ fiscal 2013 budget totals $540 million and has cut $120 million over the six years, officials said.

IPS is Indiana’s largest school district.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.