Citations Affected: IC 20-5-2-2 ; IC 20-5.5.
Synopsis: Charter school budget review. Requires a charter school to
submit its budget to the school board for review and approval. Provides
that a school board must approve a charter school's budget before the
charter school may receive funding. Makes conforming amendments.
Effective: July 1, 2003.
January 7, 2003, read first time and referred to Committee on Education and Career
A BILL FOR AN ACT to amend the Indiana Code concerning
, AS AMENDED BY P.L.286-2001,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 2. In carrying out the school purposes of each
school corporation, its governing body acting on its behalf shall have
the following specific powers:
(1) In the name of the school corporation, to sue and be sued and to enter into contracts in matters permitted by applicable law.
(2) To take charge of, manage, and conduct the educational affairs of the school corporation and to establish, locate, and provide the necessary schools, school libraries, other libraries where permitted by law, other buildings, facilities, property, and equipment therefor.
(2.5) To appropriate from the general fund an amount, not to exceed the greater of three thousand dollars ($3,000) per budget year or one dollar ($1) per pupil, not to exceed twelve thousand five hundred dollars ($12,500), based upon the school corporation's previous year's average daily membership (as
) for the purpose of promoting the best
interests of the school corporation by:
(A) the purchase of meals, decorations, memorabilia, or awards;
(B) provision for expenses incurred in interviewing job applicants; or
(C) developing relations with other governmental units.
(3) To acquire, construct, erect, maintain, hold, and to contract for such construction, erection, or maintenance of such real estate, real estate improvements, or any interest in either, as the governing body deems necessary for school purposes, including but not limited to buildings, parts of buildings, additions to buildings, rooms, gymnasiums, auditoriums, playgrounds, playing and athletic fields, facilities for physical training, buildings for administrative, office, warehouse, repair activities, or housing of school owned buses, landscaping, walks, drives, parking areas, roadways, easements and facilities for power, sewer, water, roadway, access, storm and surface water, drinking water, gas, electricity, other utilities and similar purposes, by purchase, either outright for cash (or under conditional sales or purchases money contracts providing for a retention of a security interest by seller until payment is made or by notes where such contract, security retention, or note is permitted by applicable law), by exchange, by gift, by devise, by eminent domain, by lease with or without option to purchase, or by lease under IC 21-5-10 , IC 21-5-11 , or IC 21-5-12. To repair, remodel, remove, or demolish any such real estate, real estate improvements, or interest in either, as the governing body deems necessary for school purposes, and to contract therefor. To provide for energy conservation measures through utility energy efficiency programs or under a guaranteed energy savings contract as described in IC 36-1-12.5.
(4) To acquire such personal property or any interest therein as the governing body deems necessary for school purposes, including but not limited to buses, motor vehicles, equipment, apparatus, appliances, books, furniture, and supplies, either by outright purchase for cash, or under conditional sales or purchase money contracts providing for a security interest by the seller until payment is made or by notes where such contract, security, retention, or note is permitted by applicable law, by gift, by devise, by loan, or by lease with or without option to purchase and to repair, remodel, remove, relocate, and demolish such personal property. All purchases and contracts delineated under the powers
given under subdivision (3) and this subdivision shall be subject
solely to applicable law relating to purchases and contracting by
municipal corporations in general and to the supervisory control
of agencies of the state as provided in section 3 of this chapter.
(5) To sell or exchange any of such real or personal property or interest therein, which in the opinion of the governing body is not necessary for school purposes, in accordance with IC 20-5-5 , to demolish or otherwise dispose of such property if, in the opinion of the governing body, it is not necessary for school purposes and is worthless, and to pay the expenses for such demolition or disposition.
(6) To lease any school property for a rental which the governing body deems reasonable or to permit the free use of school property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for children aged five (5) through fourteen (14) years that operates before or after the school day, or both, and during periods when school is not in session;
if the property is not needed for school purposes. Under this subdivision, the governing body may enter into a long term lease with a nonprofit corporation, community service organization, or other governmental entity, if the corporation, organization, or other governmental entity will use the property to be leased for civic or public purposes or for a school age child care program. However, if the property subject to a long term lease is being paid for from money in the school corporation's debt service fund, then all proceeds from the long term lease shall be deposited in that school corporation's debt service fund so long as the property has not been paid for. The governing body may, at its option, use the procedure specified in IC 36-1-11-10 in leasing property under this subdivision.
(7) To employ, contract for, and discharge superintendents, supervisors, principals, teachers, librarians, athletic coaches (whether or not they are otherwise employed by the school corporation and whether or not they are licensed under IC 20-6.1-3 ), business managers, superintendents of buildings and grounds, janitors, engineers, architects, physicians, dentists, nurses, accountants, teacher aides performing noninstructional duties, educational and other professional consultants, data processing and computer service for school purposes, including but not limited to the making of schedules, the keeping and
analyzing of grades and other student data, the keeping and
preparing of warrants, payroll, and similar data where approved
by the state board of accounts as provided below, and such other
personnel or services, all as the governing body considers
necessary for school purposes. To fix and pay the salaries and
compensation of such persons and such services. To classify such
persons or services and to adopt schedules of salaries or
compensation. To determine the number of such persons or the
amount of services thus employed or contracted for. To determine
the nature and extent of their duties. The compensation, terms of
employment, and discharge of teachers shall, however, be subject
to and governed by the laws relating to employment, contracting,
compensation, and discharge of teachers. The compensation,
terms of employment, and discharge of bus drivers shall be
subject to and shall be governed by any laws relating to
employment, contracting, compensation, and discharge of bus
drivers. The forms and procedures relating to the use of computer
and data processing equipment in handling the financial affairs of
such school corporation shall be submitted to the state board of
accounts for approval to the end that such services shall be used
by the school corporation when the governing body determines
that it is in the best interests of the school corporation while at the
same time providing reasonable accountability for the funds
(8) Notwithstanding the appropriation limitation in subdivision (2.5), when the governing body by resolution deems a trip by an employee of the school corporation or by a member of the governing body to be in the interest of the school corporation, including but not limited to attending meetings, conferences, or examining equipment, buildings, and installation in other areas, to permit such employee to be absent in connection with such trip without any loss in pay and to refund to such employee or to such member his reasonable hotel and board bills and necessary transportation expenses. To pay teaching personnel for time spent in sponsoring and working with school related trips or activities.
(9) To transport children to and from school, when in the opinion of the governing body such transportation is necessary, including but not limited to considerations for the safety of such children and without regard to the distance they live from the school, such transportation to be otherwise in accordance with the laws applicable thereto.
(10) To provide a lunch program for a part or all of the students
attending the schools of the school corporation, including but not
limited to the establishment of kitchens, kitchen facilities, kitchen
equipment, lunch rooms, the hiring of the necessary personnel to
operate such program, and the purchase of any material and
supplies therefor, charging students for the operational costs of
such lunch program, fixing the price per meal or per food item. To
operate such lunch program as an extracurricular activity, subject
to the supervision of the governing body. To participate in any
surplus commodity or lunch aid program.
(11) To purchase textbooks, to furnish them without cost or to rent them to students, to participate in any textbook aid program, all in accordance with applicable law.
(12) To accept students transferred from other school corporations and to transfer students to other school corporations in accordance with applicable law.
(13) To levy taxes, to make budgets, to appropriate funds, and to disburse the money of the school corporation in accordance with the laws applicable thereto. To borrow money against current tax collections and otherwise to borrow money, in accordance with IC 20-5-4.
(14) To purchase insurance or to establish and maintain a program of self-insurance relating to the liability of the school corporation or its employees in connection with motor vehicles or property and for any additional coverage to the extent permitted and in accordance with IC 34-13-3-20. To purchase additional insurance or to establish and maintain a program of self-insurance protecting the school corporation and members of the governing body, employees, contractors, or agents of the school corporation from any liability, risk, accident, or loss related to any school property, school contract, school or school related activity, including but not limited to the purchase of insurance or the establishment and maintenance of a self-insurance program protecting such persons against false imprisonment, false arrest, libel, or slander for acts committed in the course of their employment, protecting the school corporation for fire and extended coverage and other casualty risks to the extent of replacement cost, loss of use, and other insurable risks relating to any property owned, leased, or held by the school corporation. To:
(A) participate in a state employee health plan under IC 5-10-8-6.6 ;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
limitation is set out in
language or by reference to other law.
(20) To review and, in its discretion, approve a budget submitted under IC 20-5.5-7-9 by a charter school.
SECTION 2. IC 20-5.5-4-1 , AS ADDED BY P.L.100-2001, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. A charter must do the following:
(1) Be a written instrument.
(2) Be executed by a sponsor and an organizer.
(3) Confer certain rights, franchises, privileges, and obligations on a charter school.
(4) Confirm the status of a charter school as a public school.
(5) Be granted for:
(A) not less than three (3) years; and
(B) a fixed number of years agreed to by the sponsor and the organizer.
(6) Provide for:
(A) a review by the sponsor of the charter school's performance, including the progress of the charter school in achieving the academic goals set forth in the charter, at least one (1) time in each five (5) year period while the charter is in effect; and
(B) renewal, if the sponsor and the organizer agree to renew the charter.
(7) Specify the grounds for the sponsor to:
(A) revoke the charter before the end of the term for which the charter is granted; or
(B) not renew a charter.
(8) Set forth the methods by which the charter school is held accountable for achieving the educational mission and goals of the charter school, including the following:
(A) Evidence of improvement in assessment measures, including ISTEP and Graduation Qualifying Exam, attendance rates, graduation rates (if appropriate), increased numbers of Core 40 diplomas (if appropriate), and increased numbers of academic honors diplomas (if appropriate).
(B) Evidence of progress toward reaching the educational goals set by the organizer.
(9) Describe the method to be used to monitor the charter school's:
(A) compliance with applicable law; and
(B) performance in meeting targeted educational performance.
federal or state aid enrolled in the charter school.
(c) Not later than the date established by the department for determining average daily membership under IC 21-3-1.6-1.1 (d), the organizer shall submit to each governing body a report of the total number and names of students from the governing body's school corporation enrolled in the charter school. Upon verifying the accuracy of the information reported and subject to section 9 of this chapter, the governing body shall distribute to the organizer a proportionate share of local support for the students enrolled in the charter school in an amount determined under STEP THREE of the following formula:
STEP ONE: Add the revenues obtained by the school corporation's:
(A) general fund property tax levy; and
(B) general fund auto excise and financial institutions tax.
STEP TWO: Divide the sum determined under STEP ONE by the total number of students enrolled in the school corporation.
STEP THREE: Multiply the quotient determined under STEP TWO by the number of students enrolled in the charter school.
(d) Subject to section 9 of this chapter, the distribution under subsection (b) shall be made on the same schedule as the schedule on which the school corporation receives the funds.
SECTION 4. IC 20-5.5-7-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) Not less than thirty (30) days before a school corporation meets to fix its budget for the ensuing budget year under IC 6-1.1-17-5 , a charter school shall submit its budget for the ensuing budget year to the governing body of the school corporation in which the charter school is located for review under IC 20-5-2-2.
(b) Not more than sixty (60) days after the charter school submits its budget to the governing body under subsection (a), the governing body may approve the charter school's budget.
(c) If the governing body approves the charter school's budget under subsection (b), the charter school shall receive the distribution under section 3 of this chapter.
(d) If the governing body does not approve the charter school's budget under subsection (b), the governing body shall notify:
(1) the department; and
(2) each governing body described in section 3(c) of this chapter.