Introduced Version




Citations Affected: IC 20-40.

Synopsis: Flexibility in use of school funds. Extends the authority for a school corporation to use money in its capital projects fund to pay the costs of insurance and utilities through 2014. Permits a school corporation to transfer money to a fund from any other fund, except a school bus replacement fund or a debt service fund, for two years.

Effective: July 1, 2013.


    January 8, 2013, read first time and referred to Committee on Education.


First Regular Session 118th General Assembly (2013)

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.
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    A BILL FOR AN ACT to amend the Indiana Code concerning education.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 20-40-8-19; (13)IN1110.1.1. -->     SECTION 1. IC 20-40-8-19, AS AMENDED BY P.L.48-2011, SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 19. Money in the fund may be used before January 1, 2014, 2015, to pay for up to one hundred percent (100%) of the following costs of a school corporation:
        (1) Utility services.
        (2) Property or casualty insurance.
        (3) Both utility services and property or casualty insurance.
A school corporation's expenditures under this section may not in a calendar year exceed three and five-tenths percent (3.5%) of the school corporation's 2005 calendar year distribution.
     Chapter 18. Transfer of Money Between Funds
    Sec. 1. This chapter supplements authority granted by other law to transfer money from one (1) fund to another fund.
    Sec. 2. Notwithstanding any other law, the governing body of a school corporation may transfer money to any fund of the school corporation from any other fund of the school corporation, except a school bus replacement fund or a debt service fund, in conformity with this chapter.
    Sec. 3. Authorization to make a transfer under this chapter must be adopted in a resolution that is approved by the governing body at a regular public meeting. The resolution must generally describe the purposes for which the transferred money will be used and must include the findings described in section 4 of this chapter.
    Sec. 4. Before authorizing a transfer of money under this chapter, the governing body must determine, in the affirmative, that:
        (1) the amount that the governing body proposes to transfer is not currently needed to meet the obligations of the fund from which the money is being transferred;
        (2) the transfer does not violate any federal law or regulation or the terms of any agreement related to a lease or bonds; and
        (3) the transfer is necessary.
    Sec. 5. A transfer under this chapter results in a reduction in the amount available from the fund from which the money is transferred. A school corporation may not:
        (1) increase its property tax levy to make up for the reduction; or
        (2) borrow money to replace the amount of money transferred to another fund.
    Sec. 6. Subject to this chapter, money transferred under this chapter may be used for any of the purposes of the fund to which it is transferred.
    Sec. 7. A transfer under this chapter does not authorize the expenditure of more money from a fund than the total amount set out in the budget of the school corporation, as amended by any supplemental appropriation made in conformity with IC 6-1.1-18-5.
    Sec. 8. A transfer under this chapter may not be the subject of bargaining or discussion under IC 20-29. A school corporation may not use money transferred under this chapter for increases in school employee salaries and benefits.
    Sec. 9. This chapter expires July 1, 2015.