Introduced Version
HOUSE BILL No. 1228
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-19-1.5; IC 6-3; IC 6-3.1-31;
IC 20-12-22.5; IC 20-20-33; IC 20-24-7-3; IC 20-26-11; IC 21-1-30-2;
IC 21-3.
Synopsis: Education finance and taxation. Imposes a graduated
adjusted gross income tax, with a maximum rate of 4.4%. Provides that
for purposes of computing the average daily membership and other
pupil counts of school corporations, kindergarten pupils attending a
full-day kindergarten program are counted as one pupil. Provides that
an amount equal to the property taxes that would otherwise result from
the recalculation of average daily membership shall instead be paid as
additional tuition support. Authorizes the state student assistance
commission to provide grants and loans to persons who: (1) are
employed in certain positions by a school corporation or an accredited
nonpublic school; and (2) are enrolled in or admitted to an Indiana
institution of higher education as students pursuing a master's degree.
Provides that a grant or loan must be applied to the person's costs for
tuition and regularly assessed fees. Provides that the maximum amount
of a grant is $5,000 and the maximum amount of a loan is $5,000.
Provides that the total of all grants and loans in a state fiscal year may
not exceed $20,000,000. Provides a refundable income tax credit for
repayment of loan amounts. Provides that the credit may not exceed
$1,000 each year. Requires the department of education to establish a
pilot program to provide grants to school corporations that implement
(Continued next page)
Effective: Upon passage; July 1, 2006; January 1, 2007.
Day
January 10, 2006, read first time and referred to Committee on Ways and Means.
Digest Continued
prekindergarten programs. Requires the education roundtable to
provide recommendations to the department of education concerning
the criteria to be used in selecting the school corporations for the pilot
program. Provides that the total of all grants under the pilot program in
a state fiscal year may not exceed $20,000,000. Includes reporting
requirements for participating school corporations and the department
of education. Provides that the pilot program expires July 1, 2013.
Makes an appropriation.
Introduced
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2005 Regular Session of the General Assembly.
HOUSE BILL No. 1228
A BILL FOR AN ACT to amend the Indiana Code concerning
education finance and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-19-1.5; (06)IN1228.1.1. -->
SECTION 1. IC 6-1.1-19-1.5, AS AMENDED BY P.L.246-2005,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 1.5. (a) The following definitions apply
throughout this section and IC 21-3-1.7:
(1) "Adjustment factor" means the adjustment factor determined
by the department of local government finance for a school
corporation under IC 6-1.1-34.
(2) "Adjusted target property tax rate" means:
(A) the school corporation's target general fund property tax
rate determined under IC 21-3-1.7-6.8; multiplied by
(B) the school corporation's adjustment factor.
(3) "Previous year property tax rate" means the part of the school
corporation's previous year general fund property tax rate imposed
for the school corporation's tuition support levy (as defined in
IC 21-3-1.7-5), but before the reductions in IC 21-3-1.7-5.
(b) Except as otherwise provided in this chapter, a school
corporation may not impose a general fund ad valorem property tax
levy which exceeds the following:
STEP ONE: Determine the result of:
(A) the school corporation's adjusted target property tax rate;
minus
(B) the school corporation's previous year property tax rate.
STEP TWO: If the school corporation's adjusted target property
tax rate:
(A) exceeds the school corporation's previous year property tax
rate, the result under this STEP for the school corporation is
the school corporation's previous year property tax rate after
increasing the rate by the lesser of:
(i) the STEP ONE result; or
(ii) three cents ($0.03); or
(B) is less than the school corporation's previous year property
tax rate, the result under this STEP is the school corporation's
previous year property tax rate after reducing the rate by the
lesser of:
(i) the absolute value of the STEP ONE result; or
(ii) eight cents ($0.08); or
(C) equals the school corporation's previous year property tax
rate, the result under this STEP is the school corporation's
adjusted target property tax rate.
STEP THREE: Divide the school corporation's total assessed
value by one hundred dollars ($100).
STEP FOUR: Multiply the STEP TWO result by the STEP
THREE result.
STEP FIVE: Determine the sum of the following:
(A) The STEP FOUR result.
(B) An amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
(C) The part of the maximum general fund levy for the year
that equals the original amount of the levy by the school
corporation to cover the costs of opening a new school facility
or reopening an existing facility during the preceding year.
(D) The amount determined under item (iv) of the following
formula:
(i) Determine the target revenue per ADM under
IC 21-3-1.7-6.7 for each charter school that included at least
one (1) student who has legal settlement in the school
corporation in the charter school's current ADM.
(ii) For each charter school, multiply the item (i) amount by
the number of students who have legal settlement in the
school corporation and who are included in the charter
school's current ADM.
(iii) Determine the sum of the item (ii) amounts.
(iv) Multiply the item (iii) amount by thirty-five hundredths
(0.35).
For determinations before January 1, 2008, in determining
the number of students for purposes of this clause, each
kindergarten pupil shall be counted as one-half (1/2) pupil.
For determinations after December 31, 2007, in
determining the number of students for purposes of this
clause, each kindergarten pupil who does not attend a
full-day kindergarten program shall be counted as one-half
(1/2) pupil, and each kindergarten pupil who attends a
full-day kindergarten program shall be counted as one (1)
pupil.
(c) For purposes of this section, "total assessed value" with respect
to a school corporation means the total assessed value of all taxable
property for ad valorem property taxes first due and payable during that
year.
(d) The department of local government finance shall annually
establish an assessment ratio and adjustment factor for each school
corporation to be used upon the review and recommendation of the
budget committee. The information compiled, including background
documentation, may not be used in a:
(1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13,
IC 6-1.1-14, or IC 6-1.1-15;
(2) petition for a correction of error under IC 6-1.1-15-12; or
(3) petition for refund under IC 6-1.1-26.
(e) All tax rates and tax levies computed under this section shall be
computed by rounding in conformity with IC 21-3-1.7-7.
SOURCE: IC 6-3-2-1; (06)IN1228.1.2. -->
SECTION 2. IC 6-3-2-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2007]: Sec. 1. (a) Each taxable year, a tax
at the
rate of three and four-tenths percent (3.4%) of adjusted gross
income following rates is imposed upon the adjusted gross income of
every resident person, and on that part of the adjusted gross income
derived from sources within Indiana of every nonresident person:
(1) Three and four-tenths percent (3.4%) of the part of
adjusted gross income that is less than seventy-five thousand
dollars ($75,000).
(2) Three and six-tenths percent (3.6%) of the part of adjusted
gross income that is at least seventy-five thousand dollars
($75,000) but less than one hundred thousand dollars
($100,000).
(3) Four and four-tenths percent (4.4%) of the part of
adjusted gross income that equals or exceeds one hundred
thousand dollars ($100,000).
(b) Except as provided in section 1.5 of this chapter, each taxable
year, a tax at the rate of eight and five-tenths percent (8.5%) of adjusted
gross income is imposed on that part of the adjusted gross income
derived from sources within Indiana of every corporation.
SOURCE: IC 6-3-7-3; (06)IN1228.1.3. -->
SECTION 3. IC 6-3-7-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 3. (a) All revenues derived from
collection of the adjusted gross income tax imposed on corporations
shall be deposited in the state general fund.
(b) Before January 1, 2007, all revenues derived from collection
of the adjusted gross income tax imposed on persons shall be deposited
as follows:
(1) Eighty-six percent (86%) in the state general fund.
(2) Fourteen percent (14%) in the property tax replacement fund.
(c) After December 31, 2006, all revenue derived from collection
of the adjusted gross income tax imposed on persons shall be
deposited as follows:
(1) Eighty-seven percent (87%) in the state general fund.
(2) Thirteen percent (13%) in the property tax replacement
fund.
SOURCE: IC 6-3.1-31; (06)IN1228.1.4. -->
SECTION 4. IC 6-3.1-31 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]:
Chapter 31. Master's Degree Loan Tax Credit
Sec. 1. As used in this chapter, "taxpayer" means an individual
who repays all or a part of a loan the individual received under
IC 20-12-22.5.
Sec. 2. A taxpayer is entitled to a credit against the adjusted
gross income tax imposed by IC 6-3 if during the taxable year the
taxpayer is employed in a positiion described in
IC 20-12-22.5-3(a)(1) and repays all or part of a loan under
IC 20-12-22.5. The credit for the taxable year is equal to the lesser
of:
(1) the total amount of the taxpayer's repayments in the
taxable year of a loan or part of a loan under IC 20-12-22.5;
or
(2) one thousand dollars ($1,000).
Sec. 3. A taxpayer is entitled to a refund of any unused credit
under this chapter.
Sec. 4. (a) A taxpayer claiming a credit under this chapter must
claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department.
(b) The taxpayer shall submit to the department all information
the department determines necessary to calculate the credit
provided by this chapter and to determine whether the credit was
properly claimed.
Sec. 5. The department shall adopt rules under IC 4-22-2 to
carry out this chapter.
SOURCE: IC 20-12-22.5; (06)IN1228.1.5. -->
SECTION 5. IC 20-12-22.5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 22.5. Grants and Loans for Master's Degrees
Sec. 1. As used in this chapter, "approved institution of higher
learning" means a public or private college or university that:
(1) is located in Indiana;
(2) offers a student the opportunity to acquire a master's
degree; and
(3) is approved by the commission for participation in the
grant and loan program under this chapter.
Sec. 2. As used in this chapter, "commission" refers to the state
student assistance commission established by IC 20-12-21-4.
Sec. 3. (a) Subject to the requirements of this chapter and rules
adopted by the commission, a person is eligible to receive a grant
or loan under this chapter if the person:
(1) is employed by a school corporation or an accredited
nonpublic school as:
(A) a teacher;
(B) an administrative officer;
(C) a librarian;
(D) a nurse licensed or registered under IC 25-23;
(E) a dietitian;
(F) a mental health provider (as defined in IC 12-13-15-4);
or
(G) a school social worker under IC 20-20-19;
(2) is enrolled in or admitted to an approved institution of
higher learning as a student pursuing a master's degree
related to the person's professional development;
(3) applies to the commission, on forms prepared by the
commission, for the grant or loan; and
(4) meets any other requirements established by the
commission to carry out this chapter.
(b) The maximum amount of a grant the commission may award
to a person under this chapter is five thousand dollars ($5,000). A
person must use a grant under this chapter for tuition and
regularly assessed fees not later than three (3) years after the
person is awarded the grant.
(c) The commission may provide a loan under this chapter only
to a person who has previously received a grant under this chapter
and has successfully completed at least one (1) semester of the
master's degree program. The commission shall determine the
interest rate for a loan provided under this chapter. The maximum
amount of a loan the commission may provide to a person under
this chapter is five thousand dollars ($5,000). A person must use a
loan under this chapter for tuition and regularly assessed fees not
later than three (3) years after the person is awarded the loan.
Sec. 4. A grant or loan awarded to a person under this chapter
must be applied to the person's cost for tuition and regularly
assessed fees for courses related to the master's degree at the
approved institution of higher learning in which the person is
enrolled.
Sec. 5. The commission may permit an approved institution of
higher learning to act as the commission's agent in accepting
applications under this chapter from students enrolled in or
applying to the approved institution of higher learning. An
approved institution of higher learning acting as the commission's
agent shall provide to the commission on a timely basis any
information, reports, and accounting the commission requires.
Sec. 6. (a) The master's degree grant and loan fund is
established to make grants and loans under this chapter to eligible
persons.
(b) The fund consists of the following:
(1) Appropriations made by the general assembly.
(2) Gifts, grants, devises, or bequests made to the state to
achieve the purposes of the fund.
(c) The fund shall be administered by the commission.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds are invested.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
(f) Money in the fund is annually appropriated to the
commission to carry out this chapter.
Sec. 7. The commission shall do the following:
(1) Adopt rules under IC 4-22-2 governing the operation of
the master's degree grant and loan fund, including rules
specifying the procedures that a person must follow to appeal
a determination made under subdivision (3) or (4).
(2) Prescribe the form and manner in which applications for
grants and loans may be submitted.
(3) Determine the eligibility of applicants.
(4) Determine the amount of a grant or loan awarded to a
person.
Sec. 8. (a) The total of all grants and loans made by the
commission under this chapter in a state fiscal year may not exceed
twenty million dollars ($20,000,000).
(b) The commission shall record the time of filing of each
application for a grant or loan under this chapter and shall
approve the applications, if the applicants otherwise qualify, in the
chronological order in which the applications are filed in the state
fiscal year.
(c) After the total of all grants and loans approved under this
chapter equals twenty million dollars ($20,000,000), the
commission may not approve additional applications filed for that
same fiscal year. The commission may, if an applicant requests,
approve a grant or loan application, in whole or in part, with
respect to the next succeeding state fiscal year.
(d) The commission may not use more than one hundred
thousand dollars ($100,000) in a state fiscal year to administer this
chapter.
SOURCE: IC 20-20-33; (06)IN1228.1.6. -->
SECTION 6. IC 20-20-33 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 33. Prekindergarten Grant Pilot Program
Sec. 1. As used in this chapter, "pilot program" refers to the
pilot program established under section 2 of this chapter.
Sec. 2. (a) The department shall establish a pilot program to
provide grants to school corporations, including charter schools,
selected by the department to implement prekindergarten
programs.
(b) The department shall administer the pilot program.
Sec. 3. (a) To be eligible for selection as a pilot program grant
recipient, a school corporation must do the following:
(1) Apply to the department for a grant, on forms provided by
the department, and include a detailed description of the
school corporation's proposed prekindergarten program. The
description must include at least the following information:
(A) The number of students likely to participate.
(B) The prekindergarten curriculum that will be instituted
by the school corporation.
(C) The estimated cost of implementing the program.
(2) Demonstrate a commitment by teachers, parents, and
school administrators toward carrying out the proposed
prekindergarten program.
(3) Comply with any other requirements set forth by the
department.
(b) Subject to section 5 of this chapter, after review of the
applications submitted under this section, the department shall do
the following:
(1) Select the school corporations that will participate in the
pilot program.
(2) Provide grants to the school corporations selected to
participate in the pilot program.
(c) The education roundtable shall provide recommendations to
the department concerning the criteria to be used by the
department in selecting the school corporations that will
participate in the pilot program.
(d) The criteria to be used by the department in selecting the
school corporations that will participate in the pilot program must
do the following:
(1) Include at least an evaluation of the following:
(A) The information submitted by the school corporation
under subsection (a).
(B) The coordination of the proposed prekindergarten
program with local health services and social services.
(2) Take into consideration the requirements of section 5 of
this chapter.
Sec. 4. A prekindergarten program that is part of the pilot
program and is funded by a grant under this chapter must:
(1) provide participating prekindergarten students with an
instructional day that consists of at least five (5) hours of
instructional time; and
(2) serve only prekindergarten students who are at least four
(4) years of age on August 1 of the school year.
Sec. 5. The department shall:
(1) select a representative sample of school corporations,
determined through an application procedure, to participate
in the pilot program;
(2) give priority to the selection of lower performing school
corporations, as defined by the department; and
(3) to the extent possible, select school corporations so that the
pilot program will:
(A) achieve a geographic balance throughout Indiana; and
(B) include urban, suburban, and rural school
corporations.
Sec. 6. Subject to the approval of the department, a school
corporation participating in the pilot program may enter into a
contract with an individual or a nonprofit entity for the operation
and management of all or any part of a prekindergarten program
funded by a grant under this chapter.
Sec. 7. (a) The total of all grants made by the department under
this chapter in a state fiscal year may not exceed twenty million
dollars ($20,000,000).
(b) The department may not use more than one hundred
thousand dollars ($100,000) in a state fiscal year to administer this
chapter.
Sec. 8. Unexpended money appropriated to the department for
the department's use in implementing the pilot program at the end
of a state fiscal year does not revert to the state general fund but
remains available to the department for the department's
continued use under this chapter.
Sec. 9. The department shall adopt rules under IC 4-22-2 to
implement this chapter. The rules must include minimum
requirements concerning the prekindergarten curriculum that will
be instituted by a school corporation participating in the pilot
program.
Sec. 10. (a) Each school corporation that participates in the pilot
program shall annually prepare a written report detailing all the
pertinent information concerning the implementation of the pilot
program, including any recommendations made and conclusions
drawn from the pilot program. The school corporation shall
submit the report to the department before July 1 of each year.
(b) Before November 1 of each year, the department shall
submit a report to the governor and the general assembly on the
pilot program, including any conclusions and recommendations
made by the department. A report submitted under this subsection
to the general assembly must be in an electronic format under
IC 5-14-6.
Sec. 11. This chapter expires July 1, 2013.
SOURCE: IC 20-24-7-3; (06)IN1228.1.7. -->
SECTION 7. IC 20-24-7-3, AS ADDED BY P.L.1-2005, SECTION
8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2006]: Sec. 3. (a) This section applies to a conversion charter school.
(b) Not later than the date established by the department for
determining average daily membership and after July 2, the organizer
shall submit to a governing body on a form prescribed by the
department the information reported under section 2(a) of this chapter
for each student who:
(1) is enrolled in the organizer's conversion charter school; and
(2) has legal settlement in the governing body's school
corporation.
(c) Beginning not more than sixty (60) days after the department
receives the information reported under section 2(a) of this chapter, the
department shall distribute to the organizer:
(1) tuition support and other state funding for any purpose for
students enrolled in the conversion charter school;
(2) a proportionate share of state and federal funds received:
(A) for students with disabilities; or
(B) staff services for students with disabilities;
enrolled in the conversion charter school; and
(3) a proportionate share of funds received under federal or state
categorical aid programs for students who are eligible for the
federal or state categorical aid and are enrolled in the conversion
charter school;
for the second six (6) months of the calendar year in which the
conversion charter school is established. The department shall make a
distribution under this subsection at the same time and in the same
manner as the department makes a distribution to the governing body
of the school corporation in which the conversion charter school is
located. A distribution to the governing body of the school corporation
in which the conversion charter school is located is reduced by the
amount distributed to the conversion charter school. This subsection
does not apply to a conversion charter school after December 31 of the
calendar year in which the conversion charter school is established.
(d) This subsection applies beginning with the first property tax
distribution described in IC 6-1.1-27-1 to the governing body of the
school corporation in which a conversion charter school is located after
the governing body receives the information reported under subsection
(b). Not more than ten (10) days after the governing body receives a
property tax distribution described in IC 6-1.1-27-1, the governing
body shall distribute to the conversion charter school the amount
determined under STEP THREE of the following formula:
STEP ONE: Determine the quotient of:
(A) the number of students who:
(i) are enrolled in the conversion charter school; and
(ii) were counted in the ADM of the previous year for the
school corporation in which the conversion charter school is
located; divided by
(B) the current ADM of the school corporation in which the
conversion charter school is located.
For distributions before January 1, 2008, in determining the
number of students enrolled under clause (A)(i), each
kindergarten student shall be counted as one-half (1/2) student.
For distributions after December 31, 2007, in determining the
number of students enrolled under clause (A)(i), each
kindergarten student who does not attend a full-day
kindergarten program shall be counted as one-half (1/2)
student, and each kindergarten student who attends a full-day
kindergarten program shall be counted as one (1) student.
STEP TWO: Determine the total amount of the following
revenues to which the school corporation in which the conversion
charter school is located is entitled for the second six (6) months
of the calendar year in which the conversion charter school is
established:
(A) Revenues obtained by the school corporation's:
(i) general fund property tax levy; and
(ii) excise tax revenue (as defined in IC 21-3-1.7-2).
(B) The school corporation's certified distribution of county
adjusted gross income tax revenue under IC 6-3.5-1.1 that is
to be used as property tax replacement credits.
STEP THREE: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
(e) Subsection (d) does not apply to a conversion charter school
after the later of the following dates:
(1) December 31 of the calendar year in which the conversion
charter school is established.
(2) Ten (10) days after the date on which the governing body of
the school corporation in which the conversion charter school is
located receives the final distribution described in IC 6-1.1-27-1
of revenues to which the school corporation in which the
conversion charter school is located is entitled for the second six
(6) months of the calendar year in which the conversion charter
school is established.
(f) This subsection applies during the second six (6) months of the
calendar year in which a conversion charter school is established. A
conversion charter school may apply for an advance from the charter
school advancement account under IC 21-1-32 in the amount
determined under STEP FOUR of the following formula:
STEP ONE: Determine the result under subsection (d) STEP
ONE (A).
STEP TWO: Determine the difference between:
(A) the conversion charter school's current ADM; minus
(B) the STEP ONE amount.
STEP THREE: Determine the quotient of:
(A) the STEP TWO amount; divided by
(B) the conversion charter school's current ADM.
STEP FOUR: Determine the product of:
(A) the STEP THREE amount; multiplied by
(B) the quotient of:
(i) the subsection (d) STEP TWO amount; divided by
(ii) two (2).
SOURCE: IC 20-26-11-13; (06)IN1228.1.8. -->
SECTION 8. IC 20-26-11-13, AS ADDED BY P.L.1-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 13. (a) As used in this section, the following terms
have the following meanings:
(1) "ADM" means the following:
(A) For purposes of allocating to a transfer student state
distributions under IC 21-1-30 (primetime), "ADM" as
computed under IC 21-1-30-2.
(B) For all other purposes, "ADM" as set forth in
IC 21-3-1.6-1.1.
(2) "Class of school" refers to a classification of each school or
program in the transferee corporation by the grades or special
programs taught at the school. Generally, these classifications are
denominated as kindergarten, elementary school, middle school
or junior high school, high school, and special schools or classes,
such as schools or classes for special education, vocational
training, or career education.
(3) "Special equipment" means equipment that during a school
year:
(A) is used only when a child with disabilities is attending
school;
(B) is not used to transport a child to or from a place where the
child is attending school;
(C) is necessary for the education of each child with
disabilities that uses the equipment, as determined under the
individualized education program for the child; and
(D) is not used for or by any child who is not a child with
disabilities.
(4) "Student enrollment" means the following:
(A) The total number of students in kindergarten through
grade 12 who are enrolled in a transferee school corporation
on a date determined by the state board.
(B) The total number of students enrolled in a class of school
in a transferee school corporation on a date determined by the
state board.
However, For determinations before January 1, 2008, a
kindergarten student shall be counted under clauses (A) and (B)
as one-half (1/2) student.
For determinations after December
31, 2007, a kindergarten student who does not attend a
full-day kindergarten program shall be counted under clauses
(A) and (B) as one-half (1/2) student, and a kindergarten
student who attends a full-day kindergarten program shall be
counted under clauses (A) and (B) as one (1) student. The state
board may select a different date for counts under this
subdivision. However, the same date shall be used for all school
corporations making a count for the same class of school.
(b) Each transferee corporation is entitled to receive for each school
year on account of each transferred student, except a student
transferred under section 6 of this chapter, transfer tuition from the
transferor corporation or the state as provided in this chapter. Transfer
tuition equals the amount determined under STEP THREE of the
following formula:
STEP ONE: Allocate to each transfer student the capital
expenditures for any special equipment used by the transfer
student and a proportionate share of the operating costs incurred
by the transferee school for the class of school where the transfer
student is enrolled.
STEP TWO: If the transferee school included the transfer student
in the transferee school's ADM for a school year, allocate to the
transfer student a proportionate share of the following general
fund revenues of the transferee school for, except as provided in
clause (C), the calendar year in which the school year ends:
(A) The following state distributions that are computed in any
part using ADM or other student count in which the student is
included:
(i) Primetime grant under IC 21-1-30.
(ii) Tuition support for basic programs.
(iii) Enrollment growth grant under IC 21-3-1.7-9.5.
(iv) At-risk grant under IC 21-3-1.7-9.7.
(v) Academic honors diploma award under IC 21-3-1.7-9.8.
(vi) Vocational education grant under IC 21-3-12.
(vii) Special education grant under IC 21-3-2.1.
(viii) The portion of the ADA flat grant that is available for
the payment of general operating expenses under
IC 21-3-4.5-2(b)(1).
(B) Property tax levies.
(C) Excise tax revenue (as defined in IC 21-3-1.7-2) received
for deposit in the calendar year in which the school year
begins.
(D) Allocations to the transferee school under IC 6-3.5.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the
STEP ONE amount.
If a child is placed in an institution or facility in Indiana under a court
order, the institution or facility shall charge the county office of the
county of the student's legal settlement under IC 12-19-7 for the use of
the space within the institution or facility (commonly called capital
costs) that is used to provide educational services to the child based
upon a prorated per student cost.
(c) Operating costs shall be determined for each class of school
where a transfer student is enrolled. The operating cost for each class
of school is based on the total expenditures of the transferee
corporation for the class of school from its general fund expenditures
as specified in the classified budget forms prescribed by the state board
of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure that is made out of the general fund from
extracurricular account receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal
to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined
under the rules adopted by the state board; multiplied by
(B) the number of students using the special equipment during
at least part of the school year.
(e) When an item of expense or cost described in subsection (c)
cannot be allocated to a class of school, it shall be prorated to all
classes of schools on the basis of the student enrollment of each class
in the transferee corporation compared with the total student
enrollment in the school corporation.
(f) Operating costs shall be allocated to a transfer student for each
school year by dividing:
(1) the transferee school corporation's operating costs for the class
of school in which the transfer student is enrolled; by
(2) the student enrollment of the class of school in which the
transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for
less than the full school year of student attendance, the transfer tuition
shall be calculated by the part of the school year for which the
transferred student is enrolled. A school year of student attendance
consists of the number of days school is in session for student
attendance. A student, regardless of the student's attendance, is enrolled
in a transferee school unless the student is no longer entitled to be
transferred because of a change of residence, the student has been
excluded or expelled from school for the balance of the school year or
for an indefinite period, or the student has been confirmed to have
withdrawn from school. The transferor and the transferee corporation
may enter into written agreements concerning the amount of transfer
tuition due in any school year. If an agreement cannot be reached, the
amount shall be determined by the state board, and costs may be
established, when in dispute, by the state board of accounts.
(g) A transferee school shall allocate revenues described in
subsection (b) STEP TWO to a transfer student by dividing:
(1) the total amount of revenues received; by
(2) the ADM of the transferee school for the school year that ends
in the calendar year in which the revenues are received.
However, for state distributions under IC 21-1-30, IC 21-3-2.1,
IC 21-3-12, or any other statute that computes the amount of a state
distribution using less than the total ADM of the transferee school, the
transferee school shall allocate the revenues to the transfer student by
dividing the revenues that the transferee school is eligible to receive in
a calendar year by the student count used to compute the state
distribution.
(h) Instead of the payments provided in subsection (b), the
transferor corporation or state owing transfer tuition may enter into a
long term contract with the transferee corporation governing the
transfer of students. The contract may:
(1) be entered into for a period of not more than five (5) years
with an option to renew;
(2) specify a maximum number of students to be transferred; and
(3) fix a method for determining the amount of transfer tuition
and the time of payment, which may be different from that
provided in section 14 of this chapter.
(i) If the school corporation can meet the requirements of
IC 21-1-30-5, IC 21-1-30-5.5, it may negotiate transfer tuition
agreements with a neighboring school corporation that can
accommodate additional students. Agreements under this section may:
(1) be for one (1) year or longer; and
(2) fix a method for determining the amount of transfer tuition or
time of payment that is different from the method, amount, or
time of payment that is provided in this section or section 14 of
this chapter.
A school corporation may not transfer a student under this section
without the prior approval of the child's parent.
(j) If a school corporation experiences a net financial impact with
regard to transfer tuition that is negative for a particular school year as
described in IC 6-1.1-19-5.1, the school corporation may appeal for an
excessive levy as provided under IC 6-1.1-19-5.1.
SOURCE: IC 20-26-11-20; (06)IN1228.1.9. -->
SECTION 9. IC 20-26-11-20, AS ADDED BY P.L.1-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 20. (a) As used in sections 19 through 29 of this
chapter, "ADM" refers to ADM as defined in IC 21-3-1.6-1.1.
(b) As used in sections 19 through 29 of this chapter, "capital
projects fund" refers to the school corporation fund set up under
IC 21-2-15.
(c) As used in sections 19 through 29 of this chapter, "class of
school" refers to a classification of each school in the transferee
corporation by the grades taught therein (generally denominated as
elementary schools, middle schools or junior high schools, high
schools, and special schools such as schools for special education,
vocational training or career education). Elementary schools include
schools containing kindergarten, but
the following apply for purposes
of this chapter:
(1) For determinations before January 1, 2008, a kindergarten
student shall be counted as one-half (1/2) student.
(2) For determinations after December 31, 2007, a
kindergarten student who does not attend a full-day
kindergarten program shall be counted as one-half (1/2)
student, and a kindergarten student who attends a full-day
kindergarten program shall be counted as one (1) student.
(d) As used in sections 19 through 29 of this chapter, "debt service
fund" refers to the school corporation fund set up under IC 21-2-4.
(e) As used in sections 19 through 29 of this chapter, "general fund"
refers to the school corporation funds set up under IC 21-2-11.
(f) As used in sections 19 through 29 of this chapter, "transferee
corporation" means the school corporation receiving students under a
court order described in section 19 of this chapter.
(g) As used in sections 19 through 29 of this chapter, "transferor
corporation" means the school corporation transferring students under
a court order described in section 19 of this chapter.
(h) As used in sections 19 through 29 of this chapter, "transferred
student" means any student transferred under a court order described
in section 19 of this chapter.
SOURCE: IC 21-1-30-2; (06)IN1228.1.10. -->
SECTION 10. IC 21-1-30-2, AS AMENDED BY P.L.246-2005,
SECTION 180, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 2. For purposes of computation
under this chapter, the following shall be used:
(1)
Before January 1, 2008, kindergarten pupils shall be counted
as five-tenths (0.5),
and all other pupils shall be counted as one
(1).
After December 31, 2007, kindergarten pupils who do not
attend a full-day kindergarten program shall be counted as
five-tenths (0.5), and all other pupils, including kindergarten
pupils who attend a full-day kindergarten program, shall be
counted as one (1).
(2) The number of pupils shall be the number of pupils used in
determining ADM, as defined by IC 21-3-1.6, for the current year.
(3) The staff cost amount for a school corporation is sixty-nine
thousand eight hundred eleven dollars ($69,811).
(4) The guaranteed amount for a school corporation is the
primetime allocation, before any penalty is assessed under this
chapter, that the school corporation would have received under
this chapter for the 1999 calendar year or the first year of
participation in the program, whichever is later.
(5) The following apply to determine whether amounts received
under this chapter have been devoted to reducing class size in
kindergarten through grade 3 as required by section 3(b) of this
chapter:
(A) Except as permitted under section 5.5 of this chapter, only
a licensed teacher who is an actual classroom teacher in a
regular instructional program is counted as a teacher.
(B) If a school corporation is granted approval under section
5.5 of this chapter, the school corporation may include as
one-third (1/3) of a teacher each classroom instructional aide
who meets qualifications and performs duties prescribed by
the Indiana state board of education.
(6) The complexity index is the index determined under
IC 21-3-1.7-6.7.
SOURCE: IC 21-3-1.6-1.1; (06)IN1228.1.11. -->
SECTION 11. IC 21-3-1.6-1.1, AS AMENDED BY P.L.1-2005,
SECTION 170, AND AS AMENDED BY P.L.246, SECTION 191, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 1.1. As used in this chapter:
(a) "School corporation" means any local public school corporation
established under Indiana law. Except as otherwise indicated, the term
includes a charter school.
(b) "School year" means a year beginning July 1 and ending the next
succeeding June 30.
(c) "State distribution" due a school corporation means the amount
of state funds to be distributed to a school corporation in any calendar
year under this chapter.
(d) "Average daily membership" or "ADM" of a school corporation
means the number of eligible pupils enrolled in the school corporation
or in a transferee corporation on a day to be fixed annually by the
Indiana state board of education and
beginning in the school year that
ends in the 2005 calendar year, as subsequently adjusted not later than
January 30 under the rules adopted by the state board of education. The
initial day of the count shall fall within the first thirty (30) days of the
school term. If, however, extreme patterns of student in-migration,
illness, natural disaster, or other unusual conditions in a particular
school corporation's enrollment on either the day fixed by the Indiana
state board of education or on the subsequent adjustment date, cause
the enrollment to be unrepresentative of the school corporation's
enrollment throughout a school year, the Indiana state board of
education may designate another day for determining the school
corporation's enrollment. The Indiana state board of education shall
monitor changes that occur after the fall count, in the number of
students enrolled in programs for children with disabilities and shall,
before December 2 of that same year and, beginning in the 2004
calendar year, before April 2 of the following calendar year, make an
adjusted count of students enrolled in programs for children with
disabilities. The superintendent of public instruction shall certify the
December adjusted count to the budget committee before February 5
of the following year and the April adjusted count not later than May
31 immediately after the date of the April adjusted count. In
determining the ADM for distributions before January 1, 2008, each
kindergarten pupil shall be counted as one-half (1/2) pupil. In
determining the ADM for distributions after December 31, 2007,
each kindergarten pupil shall be counted as one-half (1/2) pupil.
Where a school corporation commences kindergarten in a school year,
the ADM of the current and prior calendar years shall be adjusted to
reflect the enrollment of the kindergarten pupils. In determining the
ADM, each pupil enrolled in a public school and a nonpublic school is
to be counted on a full-time equivalency basis as provided in section
1.2 of this chapter.
(e) "Additional count" of a school corporation, or comparable
language, means the aggregate of the additional counts of the school
corporation for certain pupils as set out in section 3 of this chapter
(repealed) and as determined at the times for calculating ADM.
"Current additional count" means the initial computed additional count
of the school corporation for the school year ending in the calendar
year. "Prior year additional count" of a school corporation used in
computing its state distribution in a calendar year means the initial
computed additional count of the school corporation for the school year
ending in the preceding calendar year.
(f) For purposes of this subsection, "school corporation" does not
include a charter school. "Adjusted assessed valuation" of any school
corporation used in computing state distribution for a calendar year
means the assessed valuation in the school corporation, adjusted as
provided in IC 6-1.1-34. The amount of the valuation shall also be
adjusted downward by the department of local government finance to
the extent it consists of real or personal property owned by a railroad
or other corporation under the jurisdiction of a federal court under the
federal bankruptcy laws (11 U.S.C. 101 et seq.) if as a result of the
corporation being involved in a bankruptcy proceeding the corporation
is delinquent in payment of its Indiana real and personal property taxes
for the year to which the valuation applies. If the railroad or other
corporation in some subsequent calendar year makes payment of the
delinquent taxes, then the state superintendent of public instruction
shall prescribe adjustments in the distributions of state funds pursuant
to this chapter as are thereafter to become due to a school corporation
affected by the delinquency as will ensure that the school corporation
will not have been unjustly enriched under the provisions of
P.L.382-1987(ss). The amount of the valuation shall also be adjusted
downward by the department of local government finance to the extent
it consists of real or personal property described in IC 6-1.1-17-0.5(b).
(g) "General fund" means a fund established under IC 21-2-11-2.
(h) "Teacher" means every person who is required as a condition of
employment by a school corporation to hold a teacher's license issued
or recognized by the state, except substitutes and any person paid
entirely from federal funds.
(i) For purposes of this subsection, "school corporation" does not
include a charter school. "Teacher ratio" of a school corporation used
in computing state distribution in any calendar year means the ratio
assigned to the school corporation pursuant to section 2 of this chapter.
(j) "Eligible pupil" means a pupil enrolled in a school corporation
if:
(1) the school corporation has the responsibility to educate the
pupil in its public schools without the payment of tuition;
(2) subject to subdivision (5), the school corporation has the
responsibility to pay transfer tuition under IC 20-8.1-6.1,
IC 20-8.1-6.1 (before its repeal) or IC 20-26-11, because the
pupil is transferred for education to another school corporation
(the "transferee corporation");
(3) the pupil is enrolled in a school corporation as a transfer
student under IC 20-8.1-6.1, IC 20-8.1-6.1 (before its repeal) or
IC 20-26-11-6 or entitled to be counted for ADM or additional
count purposes as a resident of the school corporation when
attending its schools under any other applicable law or regulation;
(4) the state is responsible for the payment of transfer tuition to
the school corporation for the pupil under IC 20-8.1-6.1,
IC 20-8.1-6.1 (before its repeal) or IC 20-26-11; or
(5) all of the following apply:
(A) The school corporation is a transferee corporation.
(B) The pupil does not qualify as a qualified pupil in the
transferee corporation under subdivision (3) or (4).
(C) The transferee corporation's attendance area includes a
state licensed private or public health care facility, child care
facility, or foster family home where the pupil was placed:
(i) by or with the consent of the division of family and
children;
(ii) by a court order;
(iii) by a child placing agency licensed by the division of
family and children; or
(iv) by a parent or guardian under
IC 20-8.1-6.1,
IC 20-8.1-6.1 (before its repeal) or IC 20-26-11-8.
For purposes of IC 21-3-12, the term includes a student enrolled in a
charter school.
(k) "General fund budget" of a school corporation means the amount
of the budget approved for a given year by the department of local
government finance and used by the department of local government
finance in certifying a school corporation's general fund tax levy and
tax rate for the school corporation's general fund as provided for in
IC 21-2-11. The term does not apply to a charter school.
(l) "At risk index" means the following:
(1) For a school corporation that is a not a charter school, the
sum of:
(A) the product of sixteen-hundredths (0.16) multiplied by the
percentage of families in the school corporation with children
who are less than eighteen (18) years of age and who have a
family income below the federal income poverty level (as
defined in IC 12-15-2-1);
(B) the product of four-tenths (0.4) multiplied by the
percentage of families in the school corporation with a single
parent; and
(C) the product of forty-four hundredths (0.44) multiplied by
the percentage of the population in the school corporation
who are at least twenty (20) years of age with less than a
twelfth grade education.
The data to be used in making the calculations under this
subdivision must be the data from the 2000 federal decennial
census.
(2) For a charter school, the index determined under subdivision
(1) for the school corporation in which the charter school is
located.
(m) (l) "ADM of the previous year" or "ADM of the prior year" used
in computing a state distribution in a calendar year means the initial
computed ADM for the school year ending in the preceding calendar
year.
(n) (m) "Current ADM" used in computing a state distribution in a
calendar year means the initial computed ADM for the school year
ending in the calendar year.
SOURCE: IC 21-3-2.5; (06)IN1228.1.12. -->
SECTION 12. IC 21-3-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Chapter 2.5. Full-Day Kindergarten Adjustment
Sec. 1. As used in this chapter, "ADM" has the meaning set
forth in IC 21-3-1.6-1.1.
Sec. 2. As used in this chapter, "student count law" refers to the
following:
(1) IC 6-1.1-19-1.5.
(2) IC 20-24-7-3.
(3) IC 20-26-11-13.
(4) IC 20-26-11-20.
(5) IC 21-1-30-2.
(6) IC 21-3-1.6-1.1.
(7) IC 21-3-3.1-2.1.
Sec. 3. In applying student count laws and determining tax levies
and state distributions for years beginning after December 31,
2007, and notwithstanding any other law, an additional property
tax levy that would otherwise result for a school corporation from
counting each kindergarten pupil who attends a full-day
kindergarten program as one (1) pupil or one (1) ADM under
student count laws, rather than one-half (1/2) pupil or one-half
(1/2) ADM, may not be imposed by the school corporation. An
amount equal to the additional property tax levy that would, except
for application of this section, otherwise result shall be distributed
to the school corporation from the state general fund as additional
tuition support.
Sec. 4. The amount necessary to make the additional tuition
support distributions under section 3 of this chapter is
appropriated from the state general fund.
SOURCE: IC 21-3-3.1-2.1; (06)IN1228.1.13. -->
SECTION 13. IC 21-3-3.1-2.1, AS AMENDED BY P.L.1-2005,
SECTION 173, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 2.1. (a) For each calendar year, the
allowable transportation distribution for each school corporation shall
be based on the following formula:
(1) The sum of two hundred seventy-five dollars ($275) for 1988,
and two hundred eighty dollars ($280) for 1989 and thereafter,
less the product of twenty dollars ($20) multiplied by the linear
density of the school corporation.
(2) This remainder is then multiplied by the number of the school
corporation's eligible pupils.
(3) From this product is subtracted the product of thirteen and
sixty-seven hundredths cents ($0.1367) multiplied by each one
hundred dollars ($100) of the school corporation's assessed value
for taxes first due and payable in the preceding year.
(b) Application of the formula in subsection (a) shall be governed
and modified by the following provisions:
(1) In calendar year 1976, and subsequent years, no school
corporation that receives funds under this chapter shall receive
less money than the school corporation was entitled to receive in
calendar year 1975 under IC 21-3-3 (repealed December 31,
1975).
(2) The linear density of the school corporation shall be
determined by dividing the total number of eligible pupils by the
round trip mileage of all vehicles used by or for the school
corporation in transporting pupils.
(3) Eligible pupils are those counted in ADM, enrolled in grades
K-12, and transported more than one (1) mile or a preschool child
who is transported for purposes of attending a special education
program under IC 20-35-4-9, regardless of the distance
transported.
(4) The round trip mileage of a vehicle shall be the total miles
traveled by the vehicle measured from the first point the vehicle
picks up an eligible pupil to the last point at which an eligible
pupil disembarks at school, multiplied by two (2).
(5) For distributions before January 1, 2008, a kindergarten
pupil, to the extent the pupil constitutes an eligible pupil, shall be
counted as one-half (1/2) an eligible pupil. For distributions
after December 31, 2007, a kindergarten pupil, to the extent
the pupil constitutes an eligible pupil, shall be counted as
one-half (1/2) an eligible pupil for kindergarten pupils who do
not attend a full-day kindergarten program and one (1)
eligible pupil for kindergarten pupils who attend a full-day
kindergarten program. A preschool pupil attending a special
education program under IC 20-35-4-9 is counted as one (1)
eligible pupil.
(6) All the factors, applied in sections 1 and 3 of this chapter for
determining the transportation distribution for any school
corporation for any calendar year, shall be those existing in the
school year ending in the preceding calendar year.
(7) If subsection (a)(3) requires the use of the assessed valuation
for a year in which a general reassessment becomes effective, the
state shall make an adjustment in the assessed value used to
neutralize the effect of the general reassessment. The adjustment
applies to all subsequent years before another general
reassessment becomes effective.
SOURCE: ; (06)IN1228.1.14. -->
SECTION 14. [EFFECTIVE JANUARY 1, 2007]
IC 6-3-2-1, as
amended by this act, applies to taxable years beginning after
December 31, 2006.
SOURCE: ; (06)IN1228.1.15. -->
SECTION 15. [EFFECTIVE JANUARY 1, 2007] IC 6-3.1-31, as
added by this act, applies to taxable years beginning after
December 31, 2006.
SOURCE: ; (06)IN1228.1.16. -->
SECTION 16. [EFFECTIVE UPON PASSAGE] (a) There is
appropriated to the master's degree grant and loan fund twenty
million dollars ($20,000,000) from the state general fund for the
state student assistance commission's use in carrying out
IC 20-12-22.5, as added by this act, beginning July 1, 2006, and
ending June 30, 2007.
(b) This SECTION expires July 1, 2007.
SOURCE: ; (06)IN1228.1.17. -->
SECTION 17. [EFFECTIVE UPON PASSAGE] (a) There is
appropriated to the department of education twenty million dollars
($20,000,000) from the state general fund to carry out IC 20-20-33,
as added by this act, beginning July 1, 2006, and ending June 30,
2007.
(b) This SECTION expires July 1, 2007.
SOURCE: ; (06)IN1228.1.18. -->
SECTION 18. [EFFECTIVE UPON PASSAGE] (a) To implement
IC 20-12-22.5, as added by this act, the state student assistance
commission shall adopt temporary rules in the manner provided in
IC 4-22-2-37.1 for the adoption of emergency rules.
(b) A temporary rule adopted under this SECTION expires on
the earliest of the following:
(1) The date rules are adopted under IC 20-12-22.5, as added
by this act.
(2) The date another temporary rule is adopted under this
SECTION to replace an earlier rule adopted under this
SECTION.
(3) January 1, 2008.
(c) This SECTION expires July 1, 2008
SOURCE: ; (06)IN1228.1.19. -->
SECTION 19. [EFFECTIVE UPON PASSAGE] (a) To implement
IC 20-20-33, as added by this act, the department of education shall
adopt temporary rules in the manner provided in IC 4-22-2-37.1
for the adoption of emergency rules.
(b) A temporary rule adopted under this SECTION expires on
the earliest of the following:
(1) The date rules are adopted under IC 20-20-33, as added by
this act.
(2) The date another temporary rule is adopted under this
SECTION to replace an earlier rule adopted under this
SECTION.
(3) January 1, 2008.
(c) This SECTION expires July 1, 2008.
SOURCE: ; (06)IN1228.1.20. -->
SECTION 20. [EFFECTIVE JANUARY 1, 2007] The changes
made by this act to the determination of ADM and other student
counts in:
(1) IC 6-1.1-19-1.5;
(2) IC 20-24-7-3;
(3) IC 20-26-11-13;
(4) IC 20-26-11-20;
(5) IC 21-1-30-2;
(6) IC 21-3-1.6-1.1; and
(7) IC 21-3-1.6-2.1;
all as amended by this act, apply for purposes of calculating
distributions and payments made after December 31, 2007.
SOURCE: ; (06)IN1228.1.21. -->
SECTION 21.
An emergency is declared for this act.