Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 6-1.1-19-1.5, AS AMENDED BY HEA 1001-2003,
SECTION 136, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: 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 school
corporation's previous year general fund property tax rate after the
reductions cited in IC 21-3-1.7-5(1), IC 21-3-1.7-5(2), and
IC 21-3-1.7-5(3).
(b) Except as otherwise provided in this chapter, a school
corporation may not, for a calendar year beginning after December 31,
2004, 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, perform the calculation under STEP THREE and not
under STEP FOUR;
(B) is less than the school corporation's previous year property
tax rate, perform the calculation under STEP FOUR and not
under STEP THREE; or
(C) equals the school corporation's previous year property tax
rate, determine the levy resulting from using the school
corporation's adjusted target property tax rate and do not
perform the calculation under STEP THREE or STEP FOUR.
STEP THREE: Determine the levy resulting from using the
school corporation's previous year property tax rate after
increasing the rate by the lesser of:
(A) the STEP ONE result; or
(B) five cents ($0.05).
STEP FOUR: Determine the levy resulting from using the school
corporation's previous year property tax rate after reducing the
rate by the lesser of:
(A) the absolute value of the STEP ONE result; or
(B) five cents ($0.05).
STEP FIVE: Determine the result of:
(A) the STEP TWO (C), STEP THREE, or STEP FOUR result,
whichever applies; plus
(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.
The maximum levy is to include the portion of any excessive levy
and the levy for new facilities.
STEP SIX: Determine the result of:
(A) the STEP FIVE result; plus
(B) the product of:
(i) the weighted average of the amounts determined
under IC 21-3-1.7-6.7(e) STEP NINE for all charter
schools attended by students who have legal settlement
in the school corporation; multiplied by
(ii) thirty-five hundredths (0.35).
In determining the number of students for purposes of this
STEP, each kindergarten pupil shall be counted as one-half
(1/2) pupil.
The result determined under this STEP may not be included
in the school corporation's adjusted base levy for the year
following the year in which the result applies or in the school
corporation's determination of tuition support.
(c) For purposes of this section, "total assessed value", as adjusted
under subsection (d), 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 may adjust the total
assessed value of a school corporation to eliminate the effects of
appeals and settlements arising from a statewide general reassessment
of real property.
(e) 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.
(f) All tax rates shall be computed by rounding the rate to the
nearest one-hundredth of a cent ($0.0001). All tax levies shall be
computed by rounding the levy to the nearest dollar amount.
(g) For the calendar year beginning January 1, 2004, and ending
December 31, 2004, a school corporation may impose a general fund
ad valorem property tax levy in the amount determined under STEP
SEVEN of the following formula:
STEP ONE: Determine the quotient of:
(A) the school corporation's 2003 assessed valuation; divided
by
(B) the school corporation's 2002 assessed valuation.
STEP TWO: Determine the greater of zero (0) or the difference
between:
(A) the STEP ONE amount; minus
(B) one (1).
STEP THREE: Determine the lesser of eleven-hundredths (0.11)
or the product of:
certifies a final action under IC 6-1.1-17-16, the department of
local government finance shall provide to each county auditor the
amount determined under IC 20-5.5-7-3(c)(6) for each charter
school attended by a student who has legal settlement in both the
county and a school corporation located in the county.
(b) This subsection applies beginning with the first distribution
of property taxes to a school corporation after December 31, 2003.
At the same time a county auditor distributes property taxes to a
school corporation, the county auditor shall distribute to a charter
school the amount described in subsection (a) for the charter
school.
(c) A distribution of property taxes to a school corporation does
not include an amount distributed under subsection (b).
SECTION 3. IC 20-5.5-1-1.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 1.3.
"ADM of the previous year" or "ADM of the prior year" has the
meaning set forth in IC 21-3-1.6-1.1(m).
SECTION 4. IC 20-5.5-1-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 1.5.
"Average daily membership" or "ADM" has the meaning set forth
in IC 21-3-1.6-1.1(d).
SECTION 5. IC 20-5.5-1-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 5.5.
"Current ADM" has the meaning set forth in IC 21-3-1.6-1.1(n).
SECTION 6. IC 20-5.5-3-13, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 13. (a) This section applies to university
sponsors.
(b) The ultimate responsibility for choosing to sponsor a charter
school and responsibilities for maintaining sponsorship shall rest with
the university's board of trustees.
(c) Notwithstanding subsection (b), the university's board of trustees
may vote to assign sponsorship authority and sponsorship
responsibilities to another person or entity that functions under the
direction of the university's board. Any decisions made under this
subsection shall be communicated in writing to the department of
education and the charter school review panel.
(d) Before a university may sponsor a charter school, the
university must conduct a public meeting with public notice in the
county where the charter school will be located.
(e) A university may not sponsor a charter school in Marion
County. This subsection expires June 30, 2005.
(f) The total number of charter schools that may be approved
and opened in a calendar year by all university sponsors may not
exceed five (5). This subsection expires June 30, 2005.
SECTION 7. IC 20-5.5-3-14, AS AMENDED BY P.L.1-2002,
SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 14. (a) This section
applies to charter schools sponsored by the mayor of a consolidated
city.
(b) The number of charter schools may not be more than five (5)
during the 2001 calendar year.
(c) During each year after calendar year 2001, the maximum
number of charter schools is greater by five (5) than the maximum
number for the previous year.
(d) The limits resulting from subsections (b) and (c) shall be
cumulative from year to year. However, there shall be no
accumulation from January 1, 2003, through December 31, 2005.
SECTION 8. IC 20-5.5-6-1, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. (a) Except as provided in subsection (b),
individuals who work at a charter school are employees of the charter
school or of an entity with which the charter school has contracted to
provide services.
(b) Teachers in a conversion charter school are employees of
both the charter school and the school corporation that sponsored
the charter school. For purposes of the collective bargaining
agreement, conversion charter school teachers are considered
employees of the school corporation that sponsored the charter
school.
(c) All benefits accrued by teachers as employees of the
conversion charter school are the financial responsibility of the
conversion charter school. The conversion charter school is
required to pay those benefits directly or to reimburse the school
corporation for the cost of the benefits.
(d) All benefits accrued by a teacher during the time that the
teacher was an employee only of the school corporation that
sponsored the charter school are the financial responsibility of the
school corporation. The school corporation is required to pay those
benefits directly or to reimburse the conversion charter school for
the cost of the benefits.
(e) For any other purpose, a teacher is an employee of the
charter school.
SECTION 9. IC 20-5.5-7-3, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 3. (a) Not later than the
date established by the department for determining average daily
membership under IC 21-3-1.6-1.1(d), and after May 31, the organizer
shall submit to the department the following information on a form
prescribed by the department:
(1) The number of students enrolled in the charter school.
(2) The name and address of each student. and
(3) The name of the school corporation in which the student
resides. has legal settlement.
(4) The name of the school corporation, if any, that the
student attended during the immediately preceding school
year.
(5) The grade level in which the student will enroll in the
charter school.
The department shall verify the accuracy of the information
reported.
(b) After verifying the accuracy of the information reported under
subsection (a), This subsection applies after December 31 of the
calendar year in which a charter school begins its initial operation.
The department shall distribute the following to the organizer
(1) Tuition support and other state funding for any purpose for
students in the charter school.
(2) A proportionate share of state and federal funds received for
students with disabilities or staff services for students with
disabilities for the students with disabilities enrolled in the charter
school.
(3) A proportionate share of funds received under federal or state
categorical aid programs for students who are eligible for the
federal or state aid enrolled in the charter school. the amount
determined under IC 21-3-1.7 for the charter school. The
department shall make a distribution under this subsection at
the same time and in the same manner as the department
makes a distribution under IC 21-3-1.7.
(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, 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) The distribution under subsection (b) shall be made on the same
schedule as the schedule on which the school corporation receives the
funds.
(c) The department shall provide to the department of local
government finance the following information:
(1) For each county, the number of students who:
(A) have legal settlement in the county; and
(B) attend a charter school.
(2) The school corporation in which each student described in
subdivision (1) has legal settlement.
(3) The charter school that a student described in subdivision
(1) attends and the county in which the charter school is
located.
(4) The amount determined under IC 6-1.1-19-1.5(g) STEP
EIGHT for 2004 and IC 6-1.1-19-1.5(b) STEP SIX for 2005
for each school corporation described in subdivision (2).
(5) The amount determined under STEP TWO of the
following formula:
STEP ONE: Determine the product of:
(A) the amount determined under IC 21-3-1.7-6.7(d) or
IC 21-3-1.7-6.7(e) for a charter school described in
subdivision (3); multiplied by
(B) thirty-five hundredths (0.35).
STEP TWO: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the current ADM of a charter school described in
subdivision (3).
(6) The amount determined under STEP THREE of the
following formula:
STEP ONE: Determine the number of students described
in subdivision (1) who:
(A) attend the same charter school; and
(B) have legal settlement in the same school corporation
located in the county.
STEP TWO: Determine the subdivision (5) STEP ONE
amount for a charter school described in STEP ONE (A).
STEP THREE: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
SECTION 10. IC 20-5.5-7-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)]: Sec. 3.5. (a)
This section applies to a conversion charter school.
(b) Not later than the date established by the department for
determining average daily membership under IC 21-3-1.6-1.1(d),
and after July 2, the organizer shall submit to a governing body on
a form prescribed by the department the information reported
under section 3(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 3(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
for students with disabilities or staff services for students with
disabilities 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.
In determining the number of students enrolled under clause
(A)(i), each kindergarten pupil shall be counted as one-half
(1/2) pupil.
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:
school sponsored by the state educational institution an administrative
fee equal to not more than three percent (3%) of the total amount the
governing body distributes under sections 3(b)(1) and 3(c) of this
chapter. organizer receives during the calendar year under
IC 6-1.1-19-12 and IC 21-3-1.7-8.2.
SECTION 12. IC 20-5.5-7-5, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 5. (a) An organizer may
apply for and accept for a charter school:
(1) independent financial grants; or
(2) funds from public or private sources other than the
department.
(b) An organizer shall make all applications, enter into all
contracts, and sign all documents necessary for the receipt by a
charter school of aid, money, or property from the federal
government.
SECTION 13. IC 20-5.5-7-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]: Sec. 9. (a) This section
applies if:
(1) a sponsor:
(A) revokes a charter before the end of the term for which
the charter is granted; or
(B) does not renew a charter; or
(2) a charter school otherwise terminates its charter before
the end of the term for which the charter is granted.
(b) Any local or state funds that remain to be distributed to the
charter school in the calendar year in which an event described in
subsection (a) occurs shall be distributed as follows:
(1) First, to the common school loan fund to repay any
existing obligations of the charter school under IC 20-5.5-7.5.
(2) Second, to the entities that distributed the funds to the
charter school. A distribution under this subdivision shall be
on a pro rata basis.
(c) If the funds described in subsection (b) are insufficient to
repay all existing obligations of the charter school under
IC 20-5.5-7.5, the state shall repay any remaining obligations of the
charter school under IC 20-5.5-7.5 from the amount appropriated
for distributions under IC 21-3-1.7.
SECTION 14. IC 20-5.5-7.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]:
Chapter 7.5. Charter School Advancement Account
Sec. 1. The charter school advancement account is established
within the common school fund.
Sec. 2. As used in this chapter, "operational costs" means costs
other than construction costs incurred by:
(1) a charter school other than a conversion charter school
during the second six (6) months of the calendar year in which
the charter school begins its initial operation; or
(2) a charter school, including a conversion charter school,
during the second six (6) months of a calendar year in which
the charter school's most recent enrollment reported under
IC 20-5.5-7-3(a) divided by the charter school's previous
year's ADM is at least one and fifteen-hundredths (1.15).
Sec. 3. The board shall advance money to charter schools from
the charter school advancement account to be used for operational
costs.
Sec. 4. (a) The amount of an advance under section 3 of this
chapter for operational costs described in section 2(1) of this
chapter may not exceed the amount determined under STEP
THREE of the following formula:
STEP ONE: Determine the product of:
(A) the charter school's enrollment reported under
IC 20-5.5-7-3(a); multiplied by
(B) the target revenue per ADM determined under
IC 21-3-1.7-6.7(d) or IC 21-3-1.7-6.7(e) for the charter
school.
STEP TWO: Determine the quotient of:
(A) the STEP ONE amount; divided by
(B) two (2).
STEP THREE: Determine the product of:
(A) the STEP TWO amount; multiplied by
(B) one and fifteen-hundredths (1.15).
(b) The amount of an advance under section 3 of this chapter for
operational costs described in section 2(2) of this chapter may not
exceed the amount determined under STEP FOUR of the following
formula:
STEP ONE: Determine the quotient of:
(A) the target revenue per ADM determined under
IC 21-3-1.7-6.7(d) or IC 21-3-1.7-6.7(e) for the charter
school; divided by
(B) two (2).
STEP TWO: Determine the difference between:
(A) the charter school's current ADM; minus
(B) the charter school's ADM of the previous year.
STEP THREE: Determine the product of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
STEP FOUR: Determine the product of:
(A) the STEP THREE amount; multiplied by
(B) one and fifteen-hundredths (1.15).
Sec. 5. (a) Money advanced to a charter school under this
chapter may be advanced for a period not to exceed twenty (20)
years. A charter school to which money is advanced under this
chapter must pay interest on the advance at the rate determined
under section 6 of this chapter. The board shall provide that the
advances are prepayable by the charter school or by the general
assembly at any time.
(b) This subsection applies if the general assembly prepays an
advance of money under this chapter. Any prepayment under this
subsection must be deducted from the amount appropriated for
distributions under IC 21-3-1.7.
(c) The board, after consulting with the department and upon
approval of the budget agency, shall establish the terms of an
advance before the date on which the advance is made. The terms
must include a provision allowing the state to withhold funds due
to a charter school to which an advance is made until the advance,
including interest accrued on the advance, is paid.
Sec. 6. The state board of finance shall establish periodically the
rate of interest payable on advances of money under this chapter.
An interest rate established under this section may not:
(1) be less than one percent (1%); and
(2) exceed four percent (4%).
Sec. 7. (a) To ensure timely payment of an advance under this
chapter according to the terms of the advance, the state may
withhold from funds due to the charter school to which the
advance is made an amount necessary to pay the advance and the
interest on the advance.
(b) If the state withholds funds under subsection (a), the state
first shall withhold funds from the distribution of state tuition
support to the charter school to which the advance is made. If the
tuition support distribution is unavailable or inadequate, the state
may withhold funds from any other distribution of state funds to
the charter school.
Sec. 8. A charter school that desires to obtain an advance under
this chapter must submit an application to the board on a form
prescribed by the board after consulting with the department and
the budget agency for the board to determine the amount of the
advance.
Sec. 9. (a) An advance under this chapter to a charter school is
not an obligation of the charter school within the meaning of any
constitutional limitation on or prohibition against indebtedness.
This chapter does not relieve the organizer of the charter school to
qualify the charter school for state tuition support.
(b) An agreement with the board to collect and pay over
amounts deducted from state tuition support for the benefit of
another party is not a debt of the state within the meaning of any
constitutional limitation on or prohibition against state
indebtedness.
Sec. 10. Priority of advances for operational costs must be on a
basis determined by the board after consulting with the
department and the budget agency.
SECTION 15. IC 20-5.5-8-5, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 5. The following statutes
and rules and guidelines adopted under the following statutes apply to
a charter school:
(1) IC 5-11-1-9 (required audits by the state board of accounts).
(2) IC 20-1-1.5 (unified accounting system).
(3) IC 20-1-6 (special education).
(4) IC 20-5-2-7 and IC 20-6.1-3-7.1 (criminal history).
(5) IC 20-5-2-3 (subject to laws requiring regulation by state
agencies).
(6) IC 20-6.1-4-15 (void teacher contract when two (2) contracts
are signed).
(7) IC 20-6.1-6-11 (nondiscrimination for teacher marital status).
(8) IC 20-6.1-6-13 (teacher freedom of association).
(9) IC 20-6.1-6-15 (school counselor immunity).
(10) For conversion charter schools only, IC 20-6.1-4, IC 20-6.1-5
and IC 20-6.1-6.
(11) IC 20-8.1-3 (compulsory school attendance).
(12) IC 20-8.1-4 (limitations on employment of children).
(13) IC 20-8.1-5.1-13, IC 20-8.1-5.1-15, and IC 20-8.1-5.1-15.5
(student due process and judicial review).
(14) IC 20-8.1-5.1-10 (firearms and deadly weapons).
school corporation or any community school corporation. For
purposes of IC 20-8.1-9, the term includes a charter school.
SECTION 18. IC 20-8.1-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]:
Sec. 2. As used in this article, the term "governing body" means any
township trustee and the township board of a school township, any
board of school commissioners, any metropolitan board of education,
any board of trustees or any other board or commission charged by law
with the responsibility of administering the affairs of a school
corporation. For purposes of IC 20-8.1-9, the term includes the
organizer of a charter school.
SECTION 19. IC 20-8.1-9-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]:
Sec. 3. (a) If a parent of a child or an emancipated minor who is
enrolled in a public school, in grades K-12, meets the financial
eligibility standard under section 2 of this chapter, the parent or the
emancipated minor may not be required to pay the fees for school
books, supplies, or other required class fees. Such fees shall be paid by
the school corporation in which the child resides. attends.
(b) The school corporation may apply for a reimbursement under
section 9 of this chapter from the department of the costs incurred
under subsection (a).
(c) To the extent the reimbursement received by the school
corporation is less than the textbook rental fee assessed for textbooks
that have been adopted under IC 20-10.1-9-1 or waived under
IC 20-10.1-9-27, the school corporation may request that the parent or
emancipated minor pay the balance of this amount.
SECTION 20. IC 21-1-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. (a) It is the duty of
the general assembly under the Constitution of the State of Indiana to
encourage by all suitable means moral, intellectual, scientific, and
agricultural improvement and to provide, by law, for a general and
uniform system of common schools, wherein tuition shall be without
charge, and equally open to all.
(b) It is the intent of the general assembly that:
(1) the common school fund should be used to:
(A) assist school corporations and school townships in
financing their school building construction and educational
technology programs; and
(B) assist charter schools in financing their operations;
as authorized by law and under circumstances such that the
principal of the fund remains inviolate;
(2) to the end described in subdivision (1), the common school
fund may be used to make advances to:
(A) school corporations and school townships under
IC 21-1-5; and
(B) charter schools under IC 20-5.5-7-3.5(f) and
IC 20-5.5-7.5; and
(3) this chapter is in furtherance of the duties which are imposed
exclusively upon the general assembly by the Constitution of the
State of Indiana in connection with the maintenance of a general
and uniform system of common schools and the investment and
reinvestment of the common school fund and shall be liberally
construed to carry out the purposes of the Constitution of the State
of Indiana.
(c) In addition, the common school fund may be used to make
advances under IC 21-1-5.1.
SECTION 21. IC 21-1-30-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 0.5. As
used in this chapter, "school corporation" includes a charter
school.
SECTION 22. IC 21-2-15-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]:
Sec. 3. As used in this chapter, "school corporation" means school
township, school town, school city, or public school corporation. The
term does not include a charter school.
SECTION 23. IC 21-3-1.6-1.1, AS AMENDED BY HEA
1001-2003, SECTION 156, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: 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, 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 school corporation 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, 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 20-8.1-6.1-3 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; 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 20-8.1-6.1-5.
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:
(1) (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);
(2) (B) the product of four-tenths (0.4) multiplied by the
percentage of families in the school corporation with a single
parent; and
(3) (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
subsection subdivision must be the data from the 1990 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) "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) "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.
SECTION 24. IC 21-3-1.6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]:
Sec. 2. (a) As used in this section, "school corporation" does not
include a charter school.
(b) To each school corporation there shall be assigned for each
calendar year a teacher ratio which shall consist of the average training
and experience factor of the school corporation divided by the state
training and experience factor for the same year. The training and
experience factor of the school corporation for each calendar year shall
be calculated by assigning to each of its teachers employed on October
1 of the preceding year an index number in accordance with the
following table, adding the total index numbers of all teachers in the
school corporation and dividing the total by the number of teachers.
The state factor shall be similarly calculated for all the teachers
employed by the state's school corporations.
Amount of College
Amount of
Training
Experience
Index Factor
(a) Less than 4 years Not applicable 0
.7
(b) 4 years but less Less than 6 years 0
.8
than 5 years
6 years or more 0
.9
(c) 5 years or more Less than 5 years 1
.0
5 years or more
but less than 11
years 1
.1
11 years or more
but less than 17
years 1
.2
17 years or more 1
.3a
SECTION 25. IC 21-3-1.7-2, AS AMENDED BY P.L.192-2002(ss),
SECTION 164, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 2. As used
in this chapter, "excise tax revenue" means the amount of:
(1) financial institution excise tax revenue (IC 6-5.5); plus
(2) the motor vehicle excise taxes (IC 6-6-5) and the commercial
vehicle excise taxes (IC 6-6-5.5);
the school corporation received for deposit in the school corporation's
general fund in a year. The excise tax revenue for a charter school
is zero (0).
SECTION 26. IC 21-3-1.7-3.1, AS AMENDED BY P.L.1-2003,
SECTION 68, AND BY HEA 1001-2003, SECTION 157, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
Sec. 3.1. (a) As used in this chapter, "previous year revenue" for
calculations with respect to a school corporation equals:
(1) the school corporation's tuition support for regular programs,
including basic tuition support, and excluding:
(A) special education grants;
(B) vocational education grants;
(C) at-risk programs;
(D) the enrollment adjustment grant;
(E) the academic honors diploma award;
(F) the primetime distribution; and
(G) for 2005 and thereafter, the supplemental remediation
grant;
for the year that precedes the current year; plus
(2) the school corporation's tuition support levy for the year that
precedes the current year before the reductions required under
section 5(1) and 5(2) of this chapter; plus
(3) distributions received by the school corporation under
IC 6-1.1-21.6 for the year that precedes the current year; plus
(4) the school corporation's excise tax revenue for the year that
precedes the current year by two (2) years; minus
(5) an amount equal to the reduction in the school corporation's
tuition support under subsection (b) or IC 20-10.1-2-1, or both;
plus
(6) in calendar year 2003, the amount determined for calendar
year 2002 under section 8.2 of this chapter, STEP TWO (C); plus
(7) in calendar year 2004, the amount determined for calendar
year 2002 under section 8.2 of this chapter, STEP TWO (D); plus
(8) notwithstanding subdivision (1), in calendar year 2004, the
school corporation's distribution under section 9.7 of this chapter
for calendar year 2003.
(b) A school corporation's previous year revenue shall be reduced
if:
(1) the school corporation's state tuition support for special or
vocational education was reduced as a result of a complaint being
filed with the department of education after December 31, 1988,
because the school program overstated the number of children
enrolled in special or vocational education programs; and
(2) the school corporation's previous year revenue has not been
reduced under this subsection more than one (1) time because of
a given overstatement.
The amount of the reduction equals the amount the school corporation
would have received in tuition support for special and vocational
education because of the overstatement.
(c) A school corporation's previous year revenue shall be
reduced if an existing elementary or secondary school located in
the school corporation converts to a charter school under
IC 20-5.5-11. The amount of the reduction equals the product of:
(1) the sum of the amounts distributed to the conversion
charter school under IC 20-5.5-7-3.5(c) and
IC 20-5.5-7-3.5(d); multiplied by
(2) two (2).
SECTION 27. IC 21-3-1.7-5, AS AMENDED BY P.L.85-2002,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 5. (a) As used in this
section, "school corporation" does not include a charter school.
(b) As used in this chapter, "tuition support levy" means with
respect to a school corporation for a year the maximum general fund ad
valorem property tax levy for the school corporation determined under
IC 6-1.1-19-1.5 reduced by the following:
(1) 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.
(2) The portion of the maximum general fund levy for the year
that equals the original amount of the levy imposed by the school
corporation to cover the costs of opening a new school facility
during the preceding year.
SECTION 28. IC 21-3-1.7-6.6, AS AMENDED BY HEA
1001-2003, SECTION 159, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 6.6. (a)
For purposes of this chapter, a school corporation's "adjusted ADM" for
the current year is the result determined under the following formula:
STEP ONE: Determine the greatest of the following:
(A) The school corporation's ADM for the year preceding the
current year by three (3) years.
(B) The school corporation's ADM for the year preceding the
current year by two (2) years.
(C) The school corporation's ADM for the year preceding the
current year by one (1) year.
(D) The school corporation's ADM for the current year.
STEP TWO: Determine the greater of zero (0) or the result of:
(A) the school corporation's ADM for the year preceding the
current year by four (4) years; minus
(B) the STEP ONE amount.
STEP THREE: Determine the greatest of the following:
(A) The school corporation's ADM for the year preceding the
current year by two (2) years.
(B) The school corporation's ADM for the year preceding the
current year by one (1) year.
(C) The school corporation's ADM for the current year.
STEP FOUR: Determine the greater of zero (0) or the result of:
(A) the school corporation's ADM for the year preceding the
current year by three (3) years; minus
(B) the STEP THREE amount.
STEP FIVE: Determine the greater of the following:
(A) The school corporation's ADM for the year preceding the
current year by one (1) year.
(B) The school corporation's ADM for the current year.
STEP SIX: Determine the greater of zero (0) or the result of:
(A) the school corporation's ADM for the year preceding the
current year by two (2) years; minus
(B) the STEP FIVE amount.
STEP SEVEN: Determine the greater of zero (0) or the result of:
(A) the school corporation's ADM for the year preceding the
current year by one (1) year; minus
(B) the school corporation's ADM for the current year.
STEP EIGHT: Determine the sum of the following:
(A) The STEP TWO result multiplied by two-tenths (0.2).
(B) The STEP FOUR result multiplied by four-tenths (0.4).
(C) The STEP SIX result multiplied by six-tenths (0.6).
(D) The STEP SEVEN result multiplied by eight-tenths (0.8).
seven hundred fifteen ten-thousandths (0.1715).
STEP FOUR: Determine the result of:
(1) the sum of the results in STEPS ONE through THREE;
divided by
(2) three (3).
STEP FIVE: Determine the result of one (1) plus the STEP FOUR
result.
(b) This subsection applies to calendar years beginning after
December 31, 2003. For each school corporation that is not a charter
school, the index used in subsection (d) (e) is determined under the
following STEPS:
STEP ONE: Determine the greater of zero (0) or the result of the
following:
(1) Determine 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.
(2) Determine the quotient of:
(A) eight hundred seventy dollars ($870) in 2004 and nine
hundred seventy dollars ($970) in 2005; divided by
(B) four thousand three hundred fifty dollars ($4,350) in
2004 and four thousand three hundred sixty-eight dollars
($4,368) in 2005.
(3) Determine the product of:
(A) the subdivision (1) amount; multiplied by
(B) the subdivision (2) amount.
STEP TWO: Determine the greater of zero (0) or the result of the
following:
(1) Determine the percentage of the school corporation's
students who were eligible for free lunches in the school year
ending in 2003.
(2) Determine the quotient of:
(A) one thousand one hundred dollars ($1,100) in 2004 and
one thousand two hundred dollars ($1,200) in 2005; divided
by
(B) four thousand three hundred fifty dollars ($4,350) in
2004 and four thousand three hundred sixty-eight dollars
($4,368) in 2005.
(3) Determine the product of:
(A) the subdivision (1) amount; multiplied by
(B) the subdivision (2) amount.
STEP THREE: Determine the greater of zero (0) or the result of
the following:
(1) Determine the percentage of the school corporation's
students who were classified as limited English proficient in
the school year ending in 2003.
(2) Determine the quotient of:
(A) three hundred ten dollars ($310) in 2004 and four
hundred thirty dollars ($430) in 2005; divided by
(B) four thousand three hundred fifty dollars ($4,350) in
2004 and four thousand three hundred sixty-eight dollars
($4,368) in 2005.
(3) Determine the product of:
(A) the subdivision (1) amount; multiplied by
(B) the subdivision (2) amount.
STEP FOUR: Determine the greater of zero (0) or the result of the
following:
(1) Determine the percentage of families in the school
corporation with a single parent.
(2) Determine the quotient of:
(A) four hundred forty dollars ($440) in 2004 and five
hundred thirty dollars ($530) in 2005; divided by
(B) four thousand three hundred fifty dollars ($4,350) in
2004 and four thousand three hundred sixty-eight dollars
($4,368) in 2005.
(3) Determine the product of:
(A) the subdivision (1) amount; multiplied by
(B) the subdivision (2) amount.
STEP FIVE: Determine the greater of zero (0) or the result of the
following:
(1) Determine 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 level below the federal
income poverty level (as defined in IC 12-15-2-1).
(2) Determine the quotient of:
(A) two hundred twenty dollars ($220) in 2004 and three
hundred thirty dollars ($330) in 2005; divided by
(B) four thousand three hundred fifty dollars ($4,350) in
2004 and four thousand three hundred sixty-eight dollars
($4,368) in 2005.
(3) Determine the product of:
(A) the subdivision (1) amount; multiplied by
(B) the subdivision (2) amount.
multiplied by
(ii) the index determined for the school corporation under
subsection (a) or (c), as applicable.
(B) Multiply the clause (A) result by the school corporation's
adjusted ADM for the current year.
STEP TWO: Divide the school corporation's previous year
revenue by the school corporation's adjusted ADM for the
previous year.
STEP THREE: Multiply the subsection (a) STEP FIVE result
index determined under subsection (a) or (c), as applicable, by
the following:
(A) If the STEP TWO result is not more than four thousand
five hundred sixty dollars ($4,560), multiply by ninety dollars
($90).
(B) If the STEP TWO result is more than four thousand five
hundred sixty dollars ($4,560) and not more than five
thousand eight hundred twenty-five dollars ($5,825), multiply
by the result under clause (C).
(C) Determine the result of the following:
(i) The STEP TWO result minus four thousand five hundred
sixty dollars ($4,560).
(ii) Divide the item (i) result by one thousand two hundred
sixty-five dollars ($1,265).
(iii) Multiply the item (ii) result by forty dollars ($40).
(iv) Subtract the item (iii) result from ninety dollars ($90).
(D) If the STEP TWO result is more than five thousand eight
hundred twenty-five dollars ($5,825), multiply by fifty dollars
($50).
STEP FOUR: Add the STEP TWO result and the STEP THREE
result.
STEP FIVE: Determine the greatest of the following:
(A) Multiply the STEP FOUR result by the school
corporation's adjusted ADM for the current year.
(B) Multiply the school corporation's previous year revenue by
one and two-hundredths (1.02).
(C) The STEP ONE amount.
STEP SIX: Divide the STEP FIVE amount by the school
corporation's adjusted ADM for the current year.
(d) (e) This subsection applies to calendar years beginning after
December 31, 2003. A school corporation's target revenue per ADM
for a calendar year is the result determined under STEP EIGHT NINE
of the following formula:
STEP ONE: Determine the result under clause (B) of the
following formula:
(A) Determine the result of:
(i) four thousand three hundred fifty dollars ($4,350) in
2004 and four thousand three hundred sixty-eight dollars
($4,368) in 2005; multiplied by
(ii) the index determined for the school corporation under
subsection (b) or (c), as applicable.
(B) Multiply the clause (A) result by the school corporation's
adjusted ADM for the current year.
STEP TWO: Determine the result under the following formula:
(A) Determine the quotient of:
(i) the school corporation's previous year revenue; divided
by
(ii) the school corporation's ADM for the previous year.
(B) Determine the product of:
(i) the clause (A) amount; multiplied by
(ii) one and two-hundredths (1.02).
(C) Determine the product of:
(i) the clause (B) amount; multiplied by
(ii) the school corporation's current ADM.
STEP THREE: Determine the result under the following formula:
(A) Determine the product of:
(i) the STEP TWO clause (A) amount; multiplied by
(ii) ninety-eight hundredths (0.98).
(B) Determine the product of:
(i) the clause (A) amount; multiplied by
(ii) the school corporation's current ADM.
STEP FOUR: Determine the lesser of:
(A) the STEP ONE amount; or
(B) the STEP TWO amount.
STEP FIVE: Determine the greater of:
(A) the STEP THREE amount; or
(B) the STEP FOUR amount.
STEP SIX: Divide the school corporation's previous year revenue
by the school corporation's adjusted ADM for the previous year.
STEP SEVEN: Determine the product of:
(A) the STEP SIX result; multiplied by
(B) the school corporation's current adjusted ADM.
STEP EIGHT: Determine the greatest of the following:
is equal to STEP ONE of the formula in section 6.7(c) 6.7(d) of
this chapter and the result of clause (A) is greater than zero (0).
Determine the result under clause (G) of the following formula:
(A) Add the following:
(i) 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.
(ii) The portion of the maximum general fund levy for the
year that equals the original amount of the levy imposed by
the school corporation to cover the costs of opening a new
school facility during the preceding year.
(B) Divide the clause (A) result by the school corporation's
current ADM.
(C) Divide the school corporation's 2002 assessed valuation by
the school corporation's current ADM.
(D) Divide the clause (C) result by ten thousand (10,000).
(E) Determine the greater of the following:
(i) The clause (D) result.
(ii) Thirty-nine dollars ($39) in 2002 and thirty-nine dollars
and seventy-five cents ($39.75) in 2003.
(F) Divide the clause (B) result by the clause (E) amount.
(G) Divide the clause (F) result by one hundred (100).
STEP THREE: Determine the sum of
(A) ninety-one and eight-tenths cents ($0.918) in 2002; and
(B) ninety-five and eight-tenths cents ($0.958) in 2003; and
if applicable, the STEP ONE or STEP TWO result.
(b) (c) This subsection applies to calendar years beginning after
December 31, 2004. A school corporation's target general fund
property tax rate for purposes of IC 6-1.1-19-1.5 is the result
determined under STEP FOUR of the following formula:
STEP ONE: Determine the amount determined for the school
corporation in STEP ONE of the formula in section 6.7(d) 6.7(e)
of this chapter.
STEP TWO: This STEP applies only if the amount determined in
STEP EIGHT of the formula in section 6.7(d) 6.7(e) of this
chapter minus the STEP ONE result is greater than zero (0).
Determine the result under clause (E) of the following formula:
(A) Divide the school corporation's assessed valuation by the
school corporation's current ADM.
(B) Divide the clause (A) result by ten thousand (10,000).
property tax levy is determined under IC 6-1.1-19-1.5(g).
SECTION 31. IC 21-3-1.7-8.2, AS ADDED BY HEA 1001-2003,
SECTION 162, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 8.2. (a) As used in this section,
"transfer amount" means the product of:
(1) a school corporation's assessed valuation for calendar year
2002 divided by one hundred (100); multiplied by
(2) the lesser of:
(A) three hundred twenty-eight ten-thousandths (0.0328); or
(B) the school corporation's capital projects fund tax rate for
calendar year 2002 multiplied by five-tenths (0.5).
(b) This subsection applies to calendar years ending before January
1, 2004. Notwithstanding IC 21-3-1.6 and subject to section 9 of this
chapter, the state distribution for a calendar year for tuition support for
basic programs for each school corporation equals the result
determined using the following formula:
STEP ONE:
(A) For a school corporation not described in clause (B),
determine the school corporation's result under STEP FIVE of
section 6.7(c) 6.7(d) of this chapter for the calendar year.
(B) For a school corporation that has target revenue per
adjusted ADM for a calendar year that is equal to the amount
under STEP ONE (A) of section 6.7(c) 6.7(d) of this chapter,
determine the sum of:
(i) the school corporation's result under STEP ONE of
section 6.7(c) 6.7(d) of this chapter for the calendar year;
plus
(ii) the amount of 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; plus
(iii) the part of the maximum general fund levy for the year
that equals the original amount of the levy imposed by the
school corporation to cover the costs of opening a new
school facility during the preceding year.
STEP TWO: Determine the sum of:
(A) the school corporation's tuition support levy;
(B) the school corporation's excise tax revenue for the year
that precedes the current year by one (1) year;
(C) for the last six (6) months of calendar year 2002, the
school corporation's transfer amount; plus
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 1.5. As
used in this chapter, "school corporation" includes a charter
school.
SECTION 35. IC 20-5.5-7-2 IS REPEALED [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)].
SECTION 36. [EFFECTIVE UPON PASSAGE] (a) An advance to
a charter school from the department education that is financed by
a transfer by the state board of finance from the abandoned
property fund established in IC 32-34-1-33 is forgiven.
(b) This SECTION expires June 30, 2005.
SECTION 37. [EFFECTIVE JANUARY 1, 2003
(RETROACTIVE)] (a) This SECTION applies only to Campagna
Academy Charter School.
(b) Notwithstanding IC 21-3-1.6-1.1(l), as amended by this act,
the at risk index for Campagna Academy Charter School equals
the weighted average of the at risk indices for the school
corporations in which the students who attend Campagna
Academy Charter School have legal settlement.
(c) Notwithstanding IC 21-3-1.7-6.7(b), as amended by this act,
the index for purposes of IC 21-3-1.7-6.7(c) for Campagna
Academy Charter School equals the weighted average of the
indices determined under IC 21-3-1.7-6.7(a) for the school
corporations in which the students who attend Campagna
Academy Charter School have legal settlement.
(d) This SECTION expires June 30, 2005.
SECTION 38. [EFFECTIVE UPON PASSAGE] To the extent
possible, if there is a conflict between this act and the provisions of
any other act, it is the intent of the general assembly that:
(1) charter schools be funded under the same formula as other
school corporations to the extent of the conflict;
(2) the two (2) acts be read together consistently and
harmoniously; and
(3) the policies in both acts be implemented into law.
SECTION 39. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding the effective dates of the provisions in HEA
1001(2003) and this act, and excluding the provisions of this act
that are applied retroactively to January 1, 2002, for the purposes
of calculating and distributing tuition support and other state
funding to school corporations, including charter schools, the
provisions in HEA 1001(2003) and this act shall be applied
retroactively to January 1, 2003.
(b) It is the intent of the general assembly that charter schools
and affected school corporations be funded after December 31,
2002, in conformity with school funding formulas in HEA
1001(2003) as enhanced by the provisions of this act. To the extent
that a cross reference or an effective date in this act is inconsistent
with this intent or in conflict with HEA 1001(2003), the provisions
shall be harmonized to effectuate the intent expressed in this
SECTION. The legislative services agency shall prepare legislation
for introduction in the 2004 session of the general assembly to
correct the statutory law to be in conformity with this SECTION.
SECTION 40. An emergency is declared for this act.