Introduced Version
HOUSE BILL No. 1405
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-40-2-6.
Synopsis: Education fund transfers. Provides that each school
corporation shall make every reasonable effort to transfer not more than
20% (instead of 15%) of the total revenue deposited in the school
corporation's education fund from the school corporation's education
fund to the school corporation's operations fund during calendar year
2023 and calendar year 2024. Makes conforming changes regarding the
excessive education fund transfer list.
Effective: Upon passage.
Carbaugh
January 17, 2023, read first time and referred to Committee on Ways and Means.
2023 IN 1405—LS 6876/DI 110 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1405
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 20-40-2-6, AS AMENDED BY P.L.139-2022,
2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 6. (a) Each school corporation shall make
4 every reasonable effort to transfer not more than fifteen percent (15%)
5 the following of the total revenue deposited in the school corporation's
6 education fund from the school corporation's education fund to the
7 school corporation's operations fund: during a calendar year.
8 (1) Twenty percent (20%) during each of the following:
9 (A) Calendar year 2023.
10 (B) Calendar year 2024.
11 This subdivision expires July 1, 2025.
12 (2) Fifteen percent (15%) during any calendar year after
13 calendar year 2024.
14 (b) Only after the transfer is authorized by the governing body in a
15 public meeting with public notice, money in the education fund may be
16 transferred to the operations fund to cover expenditures that are not
17 allocated to student instruction and learning under IC 20-42.5. The
2023 IN 1405—LS 6876/DI 110 2
1 amount transferred from the education fund to the operations fund shall
2 be reported by the school corporation to the department. The transfers
3 made during the:
4 (1) first six (6) months of each state fiscal year shall be reported
5 before January 31 of the following year; and
6 (2) last six (6) months of each state fiscal year shall be reported
7 before July 31 of that year.
8 (c) The report must include information as required by the
9 department and in the form required by the department.
10 (d) The department must post the report submitted under subsection
11 (b) on the department's Internet web site. website.
12 (e) Beginning in 2020, The department shall track for each school
13 corporation transfers from the school corporation's education fund to
14 its operations fund for the preceding six (6) month period. Beginning
15 in 2021,
16 (f) Before March 1 of each year, the department shall compile an
17 excessive education fund transfer list comprised of all school
18 corporations that transferred the following:
19 (1) More than twenty (20%) of the total revenue deposited in
20 the school corporation's education fund from the school
21 corporation's education fund to the school corporation's
22 operations fund during the immediately preceding calendar
23 year if the immediately preceding calendar year is calendar
24 year 2023 or 2024. This subdivision expires July 1, 2025.
25 (2) More than fifteen percent (15%) of the total revenue deposited
26 in the school corporation's education fund from the school
27 corporation's education fund to the school corporation's operations
28 fund during the immediately preceding calendar year for any
29 immediately preceding calendar year that is after calendar
30 year 2024.
31 (g) A school corporation that is not included on the excessive
32 education fund transfer list compiled under subsection (f) is
33 considered to have met the education fund transfer target percentage
34 for the immediately preceding calendar year.
35 SECTION 2. An emergency is declared for this act.
2023 IN 1405—LS 6876/DI 110