Introduced Version
SENATE BILL No. 336
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-24-7; IC 20-25.7-5-3; IC 20-26-7.1-1;
IC 20-29; IC 20-40; IC 20-46.
Synopsis: Property tax revenue shared with charter schools. Removes
and repeals provisions that require school corporations located in
certain counties to share operations fund property tax levy, operating
referendum tax levy, and school safety referendum tax levy funds with
charter schools. Makes conforming changes.
Effective: January 1, 2026.
Spencer
January 13, 2025, read first time and referred to Committee on Education and Career
Development.
2025 IN 336—LS 6781/DI 110 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
SENATE BILL No. 336
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 20-24-7-6, AS AMENDED BY P.L.189-2023,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2026]: Sec. 6. (a) With the approval of a majority of the
4 members of the governing body, a school corporation may distribute a
5 proportionate share of the school corporation's operations fund to a
6 charter school. A charter school may elect to distribute a proportionate
7 share of the charter school's operations fund to the school corporation
8 in whose district the charter school is located.
9 (b) Except as provided in IC 20-46-1-21 and IC 20-46-9-22, A
10 governing body may distribute money that is received as part of a tax
11 levy collected under IC 20-46-1 from the school corporation's
12 education fund to a charter school, excluding a virtual charter school,
13 in the manner provided by IC 20-46-1-8(e). IC 20-46-1-8(d).
14 (c) Except as provided in IC 20-46-1-21 and IC 20-46-9-22, A
15 governing body may distribute money from the school safety
16 referendum tax levy fund to a charter school, excluding a virtual
17 charter school, in the manner prescribed by IC 20-46-9-6(b).
2025 IN 336—LS 6781/DI 110 2
1 SECTION 2. IC 20-24-7-6.1 IS REPEALED [EFFECTIVE
2 JANUARY 1, 2026]. Sec. 6.1. (a) This section applies to revenue
3 collected after June 30, 2024, from a tax levy imposed under
4 IC 20-46-8 by the governing body of a school corporation described in
5 IC 20-46-8-11.2(a).
6 (b) Beginning in calendar year 2025, and each year thereafter, the
7 county auditor shall distribute money that is received as part of a tax
8 levy collected under IC 20-46-8 to an eligible charter school, excluding
9 a virtual charter school and adult high school, for deposit in the charter
10 school's operations fund created under IC 20-40-18-1. The distributions
11 shall be made at the same time that tax levy revenue is required to be
12 distributed to school corporations.
13 SECTION 3. IC 20-24-7-6.2 IS REPEALED [EFFECTIVE
14 JANUARY 1, 2026]. Sec. 6.2. (a) This section applies to a levy
15 resulting from a resolution to place a referendum on the ballot adopted
16 by the governing body under IC 20-46-1-8, IC 20-46-1-8.5,
17 IC 20-46-9-6, or IC 20-46-9-7 after May 10, 2023, for counties
18 described in IC 20-46-1-21(a) and IC 20-46-9-22(a).
19 (b) The county auditor in the county in which the applicable school
20 corporation is located shall distribute money that is received as part of
21 a tax levy collected under IC 20-46-1 to an applicable charter school,
22 excluding a virtual charter school, in the manner provided by
23 IC 20-46-1-21.
24 (c) The county auditor in the county in which the applicable school
25 corporation is located shall distribute money that is received as part of
26 a tax levy collected under IC 20-46-9 to an applicable charter school,
27 excluding a virtual charter school, in the manner prescribed by
28 IC 20-46-9-22.
29 (d) A charter school that may receive money from a school
30 corporation's tax levy collected under IC 20-46-1 or a school safety
31 referendum tax levy under IC 20-46-9 may not promote a position on
32 a referendum in the same manner as a school corporation is prohibited
33 from promoting a position on a referendum under IC 20-46-1-20.
34 (e) If a charter school receives a distribution from a school
35 corporation from the school corporation's tax levy collected under
36 IC 20-46-1 or a school safety referendum tax levy under IC 20-46-9,
37 the charter school must post the following on the charter school's
38 website:
39 (1) The specific purposes for which the revenue received from the
40 tax levy will be used.
41 (2) An estimate of the annual dollar amounts that will be
42 expended for each purpose described in subdivision (1).
2025 IN 336—LS 6781/DI 110 3
1 SECTION 4. IC 20-25.7-5-3, AS AMENDED BY P.L.162-2024,
2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2026]: Sec. 3. (a) For as long as a charter school remains
4 a participating innovation network charter school:
5 (1) the school corporation may provide transportation for students
6 attending the participating innovation network charter school;
7 (2) the school corporation may maintain and repair the buildings
8 and grounds used by the participating innovation network charter
9 school consistent with the maintenance and repair to the school
10 corporation's other buildings and grounds;
11 (3) the school corporation may enter into an agreement to transfer
12 the ownership of a school corporation facility to the organizer;
13 and
14 (4) the school corporation may not alter the use of the facility
15 occupied by the participating innovation network charter school
16 without agreement from the organizer.
17 (b) If an organizer contracts with a school corporation for goods or
18 services, the school corporation may not charge the organizer more for
19 the goods or services than the school corporation pays for the goods or
20 services. A school corporation may not require an organizer to contract
21 for specific goods or services provided by the school corporation or any
22 other entity.
23 (c) A school corporation and an organizer may negotiate to require
24 specific services with regard to a participating innovation network
25 charter school during the term of an agreement. However, an organizer
26 must be able to select the service provider for the services.
27 (d) For as long as a charter school remains a participating
28 innovation network charter school, the school corporation may
29 distribute money levied as property taxes to the charter school. Property
30 taxes distributed to a charter school must be used only for a purpose for
31 which the property taxes could have been used by the school
32 corporation. Property taxes distributed under this subsection may
33 supplement services and property provided under subsection (a) or (b).
34 The parties may jointly modify an agreement described in section 2 of
35 this chapter to implement this subsection.
36 (e) An agreement concerning the transfer of ownership of a school
37 corporation facility described in subsection (a) is not subject to
38 IC 20-26-7.1.
39 (f) Unless an agreement entered into before July 1, 2024, between
40 a board and an organizer provides otherwise, a school corporation may
41 not charge an organizer an amount for goods and services that is
42 greater than the amount of the operations fund property tax levy the
2025 IN 336—LS 6781/DI 110 4
1 organizer receives under IC 20-46-8-11.2 for the participating
2 innovation network charter school.
3 SECTION 5. IC 20-26-7.1-1, AS AMENDED BY P.L.36-2024,
4 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JANUARY 1, 2026]: Sec. 1. (a) For purposes of this section, "charter
6 school" does not include a virtual charter school or an adult high
7 school.
8 (b) This chapter does not apply to the following:
9 (1) A school building that since July 1, 2011, is leased or loaned
10 by the school corporation that owns the school building to another
11 entity, if the entity is not a building corporation or other entity that
12 is related in any way to, or created by, the school corporation or
13 the governing body.
14 (2) A school corporation to which all of the following apply:
15 (A) The county auditor distributes revenue after May 10, 2023,
16 as required under IC 20-46-1-21 to each charter school
17 described in IC 20-46-1-21(b).
18 (B) If the school corporation listed in IC 20-46-9-22 receives
19 revenue from a school safety referendum tax levy under
20 IC 20-46-9, the county auditor distributes revenue after May
21 10, 2023, as required under IC 20-46-9-22 to each charter
22 school described in IC 20-46-9-22(b).
23 The above subdivisions are intended to apply retroactively. No
24 referendums or distributed revenue prior to May 10, 2023, are
25 effective to provide exemption from this chapter.
26 (3) (2) A school corporation to which all of the following apply:
27 (A) The school corporation approves a resolution after May
28 10, 2023, to impose an operating referendum tax levy under
29 IC 20-46-1 after May 10, 2023, that includes sharing the
30 revenue from the referendum tax levy in the amounts
31 described in clause (B) with each charter school that:
32 (i) a student who resides within the attendance area of the
33 school corporation attends; and
34 (ii) elects to participate in the referendum.
35 The above subdivisions are intended to apply retroactively. No
36 resolutions, referendums, or distributed revenue prior to May 10,
37 2023, are effective to provide exemption from this chapter.
38 (B) The amount of referendum tax levy revenue that the school
39 corporation is required to share with each charter school under
40 the resolution described in clause (A) is equal to the amount
41 determined applying the formula under IC 20-46-1-21(d). in
42 the last STEP of the following STEPS:
2025 IN 336—LS 6781/DI 110 5
1 STEP ONE: Determine, for each charter school, excluding
2 virtual charter schools or adult high schools, that is eligible
3 to receive a distribution, the number of students who
4 reside within the attendance area of the school corporation
5 who are currently included in the ADM of the charter
6 school.
7 STEP TWO: Determine the sum of:
8 (A) the current ADM count for the school corporation;
9 plus
10 (B) total number of all students who reside within the
11 attendance area of the school corporation who are
12 currently included in the ADM of a charter school,
13 excluding virtual charter schools or adult high schools.
14 STEP THREE: Determine the result of:
15 (A) the STEP ONE amount; divided by
16 (B) the STEP TWO amount.
17 STEP FOUR: Determine the result of:
18 (A) the STEP THREE amount; multiplied by
19 (B) the amount collected by the county auditor during
20 the most recent installment period.
21 (C) The referendum tax levy described in clause (A) is
22 approved by the voters.
23 (D) The school corporation distributes the amounts described
24 in clause (B) to each charter school described in clause (A).
25 (E) If the school corporation receives revenue from a school
26 safety referendum tax levy under IC 20-46-9, the school
27 corporation shares the revenue from the school safety
28 referendum tax levy with each charter school that:
29 (i) a student who resides within the attendance area of the
30 school corporation attends; and
31 (ii) elects to participate in the referendum;
32 in an amount equal to the amount determined applying the
33 formula under IC 20-46-9-22(d). subsection (d).
34 (c) In order for any payment to a charter school to qualify as sharing
35 of proceeds from a referendum for purposes of exemption from
36 IC 20-26-7.1, this chapter, the referendum must have been passed with
37 prior notice to voters of all amounts of referendum proceeds to be paid
38 to charter schools. Any claim of exemption based on payment of
39 proceeds from a referendum passed without such notice is void.
40 (d) To meet the requirements under subsection (b)(2)(E), the
41 school corporation must share the revenues from a school safety
42 referendum tax levy with each charter school in the amount
2025 IN 336—LS 6781/DI 110 6
1 determined in the last STEP of the following STEPS:
2 STEP ONE: Determine, for each charter school described in
3 subsection (b)(2)(E), excluding virtual charter schools or adult
4 high schools, the number of students who reside within the
5 attendance area of the school corporation who are currently
6 included in the ADM of the charter school.
7 STEP TWO: Determine the sum of:
8 (A) the current ADM count for the school corporation;
9 plus
10 (B) the total number of students who reside within the
11 attendance area of the school corporation who are
12 currently included in the ADM of a charter school,
13 excluding virtual charter schools or adult high schools.
14 STEP THREE: Determine the result of:
15 (A) the STEP ONE amount; divided by
16 (B) the STEP TWO amount.
17 STEP FOUR: Determine the result of:
18 (A) the STEP THREE amount; multiplied by
19 (B) the amount collected by the county auditor during the
20 most recent installment period.
21 SECTION 6. IC 20-29-2-6, AS AMENDED BY P.L.189-2023,
22 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JANUARY 1, 2026]: Sec. 6. "Deficit financing" for a budget year:
24 (1) means, except as provided in subdivision (2), actual
25 expenditures exceeding the employer's current year actual
26 education fund revenue and, for a school employer for which the
27 voters have passed an operating referendum tax levy under
28 IC 20-46-1 or a school safety referendum tax levy under
29 IC 20-46-9, the amount of revenue certified by the department of
30 local government finance, excluding any money required to be
31 distributed to a charter school under as a result of compliance
32 with IC 20-46-1-21 (before its repeal) or IC 20-46-9-22 (before
33 its repeal); or
34 (2) means, in the case of any distressed school corporation, the
35 Gary Community School Corporation, or the Muncie Community
36 school corporation, actual expenditures plus additional payments
37 against any outstanding debt obligations exceeding the employer's
38 current year actual education fund revenue, and, for a school
39 employer for which the voters have passed an operating
40 referendum tax levy under IC 20-46-1 or a school safety
41 referendum tax levy under IC 20-46-9, excluding any money
42 required to be distributed to a charter school under as a result of
2025 IN 336—LS 6781/DI 110 7
1 compliance with IC 20-46-1-21 (before its repeal) or
2 IC 20-46-9-22 (before its repeal), the amount of revenue
3 certified by the department of local government finance.
4 Except as provided in IC 20-29-6-3(c), revenue does not include money
5 estimated to be or actually transferred from the school corporation's
6 operations fund to its education fund.
7 SECTION 7. IC 20-29-8-7, AS AMENDED BY P.L.189-2023,
8 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JANUARY 1, 2026]: Sec. 7. (a) When a factfinder is requested or
10 required under IC 20-29-6, the board shall appoint a factfinder.
11 (b) The factfinder shall make an investigation and hold hearings as
12 the factfinder considers necessary in connection with a dispute.
13 (c) The factfinder:
14 (1) may restrict the factfinder's findings to those issues that the
15 factfinder determines significant;
16 (2) must restrict the findings to the items listed in IC 20-29-6-4;
17 and
18 (3) may not impose terms beyond those proposed by the parties in
19 their last, best offers.
20 (d) The factfinder may use evidence furnished to the factfinder by:
21 (1) the parties;
22 (2) the board;
23 (3) the board's staff; or
24 (4) any other state agency.
25 (e) The factfinder shall conduct the factfinding hearing in public in
26 a room or facility owned by the county or local unit of government
27 located in the county in which the school employer is located, or if the
28 school employer is located in more than one (1) county, in the county
29 in which the greatest number of students who attend the school
30 employer's schools reside. The public hearing may begin not earlier
31 than November 15 in the first year of the state budget biennium and
32 must be concluded by February 15 of the calendar year after the start
33 of formal collective bargaining.
34 (f) The factfinding process may not exceed thirty (30) days from
35 beginning to end, and not more than two (2) of those days may be used
36 for public testimony, which may be taken at the discretion of the
37 factfinder. During the public hearing, each party shall present fully its
38 last, best offer, including the fiscal rationale for the offer. Only
39 education fund revenue and, for a school employer for which the voters
40 have passed an operating referendum tax levy under IC 20-46-1 or a
41 school safety referendum tax levy under IC 20-46-9, the amount of
42 revenue certified by the department of local government finance,
2025 IN 336—LS 6781/DI 110 8
1 excluding any money required to be distributed to a charter school
2 under as a result of compliance with IC 20-46-1-21 (before its
3 repeal) or IC 20-46-9-22 (before its repeal), may be considered a
4 source of the funding for items. Money estimated to be or actually
5 transferred from the school corporation's operations fund to its
6 education fund may not be considered a source of funding for items.
7 (g) The factfinder shall make a recommendation as to the settlement
8 of the disputes over which the factfinder has jurisdiction.
9 (h) The factfinder shall:
10 (1) make the investigation, hearing, and findings as expeditiously
11 as the circumstances permit; and
12 (2) deliver the findings to the parties and to the board.
13 (i) The board, after receiving the findings and recommendations,
14 may make additional findings and recommendations to the parties
15 based on information in:
16 (1) the report; or
17 (2) the board's own possession.
18 The board may not make any recommendations to the parties related to
19 any items not specifically identified in IC 20-29-6-4.
20 (j) At any time within five (5) days after the findings and
21 recommendations are delivered to the board, the board may make the
22 findings and recommendations of the factfinder and the board's
23 additional findings and recommendations, if any, available to the
24 public through news media and other means the board considers
25 effective.
26 (k) The board shall make the findings and recommendations
27 described in subsection (j) available to the public not later than ten (10)
28 days after the findings and recommendations are delivered to the board.
29 SECTION 8. IC 20-40-2-2, AS AMENDED BY P.L.201-2023,
30 SECTION 181, IS AMENDED TO READ AS FOLLOWS
31 [EFFECTIVE JANUARY 1, 2026]: Sec. 2. (a) The governing body of
32 each school corporation shall establish an education fund for the
33 payment of expenses that are allocated to student instruction and
34 learning under IC 20-42.5.
35 (b) The governing body of a charter school that receives a
36 distribution of revenue received from a tax levy under IC 20-46-8-11.2
37 (before its repeal) shall establish an education fund for the payment
38 of expenses that are allocated to student instruction and learning under
39 IC 20-42.5.
40 SECTION 9. IC 20-40-3-5, AS AMENDED BY P.L.189-2023,
41 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JANUARY 1, 2026]: Sec. 5. (a) Money in the fund may be used for any
2025 IN 336—LS 6781/DI 110 9
1 lawful school expenses, including making a transfer to the school
2 corporation's education fund (IC 20-40-2) or operations fund (IC
3 20-40-18).
4 (b) Except as provided in IC 20-46-1-21, A school corporation may
5 distribute proceeds of a tax levy collected under IC 20-46-1 that is
6 transferred to the school corporation's education fund to a charter
7 school, excluding a virtual charter school, that is located within the
8 attendance area of the school corporation.
9 SECTION 10. IC 20-40-18-1, AS AMENDED BY P.L.201-2023,
10 SECTION 185, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE JANUARY 1, 2026]: Sec. 1. (a) The governing body of
12 each school corporation shall create an operations fund to be used by
13 the school corporation after December 31, 2018.
14 (b) The governing body of each charter school that receives a
15 distribution of revenue received from a tax levy under IC 20-46-8-11.2
16 (before its repeal) shall create an operations fund to be used by the
17 charter school after December 31, 2024.
18 SECTION 11. IC 20-40-18-2, AS AMENDED BY P.L.201-2023,
19 SECTION 186, IS AMENDED TO READ AS FOLLOWS
20 [EFFECTIVE JANUARY 1, 2026]: Sec. 2. (a) The operations fund
21 shall be used to deposit the following after December 31, 2018, in the
22 case of a school corporation:
23 (1) Revenue from the school corporation's operations fund
24 property tax levy under IC 20-46-8.
25 (2) The sum of the following excise tax revenue received for
26 deposit in the fund in the calendar year in which the school year
27 begins:
28 (A) Financial institutions excise tax (IC 6-5.5).
29 (B) Motor vehicle excise taxes (IC 6-6-5).
30 (C) Commercial vehicle excise taxes (IC 6-6-5.5).
31 (D) Boat excise tax (IC 6-6-11).
32 (E) Aircraft license excise tax (IC 6-6-6.5).
33 (3) Transfers from the education fund (IC 20-40-2) or the
34 operating referendum tax levy fund (IC 20-40-3), if any.
35 (4) Allocations of local income taxes to the school corporation
36 under IC 6-3.6-6, if any.
37 (b) The operations fund shall be used to deposit amounts distributed
38 to the charter school under IC 20-46-8-11.2 (before its repeal) after
39 December 31, 2024.
40 SECTION 12. IC 20-40-18-10.5, AS ADDED BY P.L.201-2023,
41 SECTION 187, IS AMENDED TO READ AS FOLLOWS
42 [EFFECTIVE JANUARY 1, 2026]: Sec. 10.5. (a) This section applies
2025 IN 336—LS 6781/DI 110 10
1 only to eligible charter schools that receive amounts distributed under
2 IC 20-46-8-11.2 (before its repeal).
3 (b) For purposes of this section, "charter board" means the
4 governing body of the organizer (as defined in IC 20-24-1-7) of an
5 eligible charter school.
6 (c) The operations fund may be used only to do the following:
7 (1) Carry out a capital projects plan under the following
8 conditions:
9 (A) The plan must include all proposed expenditures that
10 exceed ten thousand dollars ($10,000) and are for:
11 (i) capital assets; or
12 (ii) projects that are considered capital in nature, including
13 technology related projects.
14 (B) If a charter school wants to use money in the operations
15 fund during the year to pay for any items listed in clause (E)
16 that are considered capital in nature, the charter board must
17 approve a plan following a public hearing. The charter school
18 shall post the proposed plan or proposed amended plan on the
19 charter school's website before the hearing. The charter school
20 shall submit the proposed capital projects plan to the
21 department of local government finance's computer gateway
22 at least ten (10) days before the public hearing. The
23 department of local government finance shall make the
24 proposed plan available at least ten (10) days before the
25 hearing, through the department's computer gateway. If an
26 amendment to a capital projects plan is proposed, the charter
27 board must declare the nature of and need for the amendment
28 in the plan amendment.
29 (C) If a charter board adopts a plan under clause (B), the
30 charter school must then submit the plan to the department of
31 local government finance for inclusion on the department's
32 computer gateway not later than thirty (30) days after adoption
33 of the plan. The department of local government finance shall
34 immediately make the proposed plan available through the
35 gateway website.
36 (D) This clause applies to an amendment to a plan that is
37 required because of an emergency that results in costs that
38 exceed the amount accumulated in the fund for repair,
39 replacement, or site acquisition that is necessitated by an
40 emergency. The charter board is not required to comply with
41 clause (C). If the charter board determines that an emergency
42 exists, the governing body may adopt an amendment to the
2025 IN 336—LS 6781/DI 110 11
1 plan. An amendment to a plan is not subject to the deadline
2 and procedures for adoption of a plan described in this
3 subdivision.
4 (E) This clause sets forth an exclusive list of the expenditures
5 that may be made from the operations fund under clause (B),
6 as set forth in the charter board's plan or amended plan.
7 Subject to the expenditures that are identified in the charter
8 school's plan or amended plan, the operations fund shall be
9 used for the following:
10 (i) Site acquisition.
11 (ii) Site development.
12 (iii) Building acquisition, construction, replacement,
13 renovation, remodeling, improvement, and maintenance,
14 including building materials and employment services.
15 (iv) Rental of real estate, buildings, facilities, and
16 equipment.
17 (v) To repair and replace buildings and to repair and replace
18 building fixtures that are owned or leased by the charter
19 school and of a type constituting loss capable of being
20 covered by casualty insurance.
21 (vi) Purchase, lease, repair, or maintenance of equipment,
22 including maintenance vehicles to be used by the charter
23 school. However, the fund may not be used to pay for the
24 purchase, lease, repair, or maintenance of vehicles that are
25 not maintenance vehicles, or equipment to be used primarily
26 for interscholastic or extracurricular activities.
27 (vii) Service contracts for janitorial and custodial services,
28 maintenance services, snow and ice removal services, trash
29 removal services, mowing and lawn care services, pest
30 control services, and any other routine services normally
31 required in the maintenance or upkeep of charter school
32 facilities.
33 (viii) Repair, replacement, or site acquisition that is
34 necessitated by an emergency.
35 (ix) Construction, repair, replacement, remodeling, or
36 maintenance of a school sports facility.
37 (x) Utilities.
38 (xi) Property and casualty insurance.
39 (xii) Purchase, lease, upgrade, maintenance, or repair
40 technology that will not be allocated to student instruction
41 and learning, to include computer hardware, computer
42 software, wiring and computer networks, and
2025 IN 336—LS 6781/DI 110 12
1 communication access systems used to connect with
2 computer networks or electronic gateways; services of
3 full-time or part-time computer maintenance employees;
4 conducting nonrecurring inservice technology training of
5 school employees; implementing the technology preparation
6 curriculum; participating in a program to provide
7 educational technologies, including computers in the homes
8 of students (commonly referred to as "the buddy system
9 project") under IC 20-20-13-6, the 4R's technology program,
10 or any other program under the educational technology
11 program described in IC 20-20-13; and obtaining any
12 combination of equipment or services in the preceding two
13 (2) categories of this item.
14 (xiii) Services of charter school employees who perform
15 services considered to be a skilled trade by the United States
16 Department of Labor, Employment and Training
17 Administration. For purposes of this item, skilled trade
18 services do not include janitorial or comparable routine
19 services normally provided in the daily operation of school
20 facilities or equipment. Payment may be made for employee
21 services only if the employees perform construction of,
22 renovation of, remodeling of, repair of, or maintenance on
23 the facilities and equipment of the charter school.
24 (2) Pay transportation costs under the following conditions:
25 (A) A charter school shall use the operations fund to pay the
26 transportation costs attributable to transportation of school
27 children as specified in clause (B).
28 (B) Only the following costs are payable from the fund:
29 (i) Salaries paid to bus drivers, transportation supervisors,
30 mechanics and garage employees, clerks, and other
31 transportation related employees.
32 (ii) Contracted transportation services.
33 (iii) Wages of independent contractors.
34 (iv) Contracts with common carriers.
35 (v) Student fares.
36 (vi) Transportation related insurance.
37 (vii) Other expenses of operating the school corporation's
38 transportation service, including gasoline, lubricants, tires,
39 repairs, contracted repairs, parts, supplies, equipment, and
40 other related expenses.
41 (C) Percentages or parts of salaries of teaching personnel or
42 principals are not attributable to transportation. However, parts
2025 IN 336—LS 6781/DI 110 13
1 of salaries of instructional aides who are assigned to assist
2 with the school transportation program are attributable to
3 transportation. The costs described in this clause (other than
4 instructional aide costs) may not be budgeted for payment or
5 paid from the fund.
6 (D) Costs for a calendar year are those costs attributable to
7 transportation for students during the school year ending in the
8 calendar year.
9 (3) Carry out a school bus replacement plan approved by the
10 charter school board under the following conditions:
11 (A) Before a charter school may use money in the operations
12 fund for replacing school buses, a resolution approving the
13 school bus replacement plan or amended plan must be
14 submitted to the department of local government finance.
15 (B) The department of local government finance shall
16 prescribe the format of the plan. A plan must apply to at least
17 the five (5) budget years immediately following the year the
18 plan is adopted and include at least an estimate for each year
19 to which it applies of the nature and amount of proposed
20 expenditures from the fund, and if the school corporation is
21 seeking to acquire or contract for transportation services that
22 will provide additional school buses or school buses with a
23 larger seating capacity as compared with the number and type
24 of school buses from the prior school year, evidence of a
25 demand for increased transportation services within the school
26 corporation. However, the evidence requirement regarding a
27 contract for transportation services does not apply if contracted
28 transportation services are not paid from the fund.
29 (C) If the charter school is seeking to require a contractor to
30 replace a school bus, evidence that the need exists for the
31 replacement of the school bus. This clause does not apply if
32 contracted transportation services are not paid from the
33 operations fund.
34 (D) Evidence that the charter school that seeks to acquire
35 additional school buses under this subdivision is acquiring or
36 contracting for the school buses only for the purposes
37 specified in clause (B) or for replacement purposes.
38 (E) If a charter school wants to use money in the operations
39 fund during the year to pay for school bus replacement, the
40 governing body must adopt a resolution approving the bus
41 replacement plan or amended plan. The charter school shall
42 post the proposed plan or proposed amended plan on the
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1 charter school's website before the hearing. The governing
2 body must hold a hearing on the adoption of the plan. The
3 charter school shall submit the proposed school bus
4 replacement plan or amended plan to the department of local
5 government finance's computer gateway at least ten (10) days
6 before the hearing on the adoption of the plan. The department
7 of local government finance shall make the proposed plan
8 available to taxpayers, at least ten (10) days before the hearing,
9 through the department's computer gateway. If an amendment
10 to a bus replacement plan is being proposed, the charter school
11 must declare the nature of and the need for the amendment in
12 the resolution to adopt the amendment to the plan.
13 (4) Pay expenses that are allocated to overhead and operational
14 expenditures.
15 (5) Establish, maintain, and equip a public playground.
16 SECTION 13. IC 20-40-20-6, AS AMENDED BY P.L.189-2023,
17 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JANUARY 1, 2026]: Sec. 6. (a) Subject to subsections (c) and (d),
19 money in the fund may be used only for the following purposes:
20 (1) To employ or compensate a school resource officer or school
21 resource officers.
22 (2) To establish or fund a school safety office.
23 (3) To conduct a threat assessment of a school building.
24 (4) To create or update a school safety plan.
25 (5) To develop or update school emergency response systems.
26 (6) To purchase equipment to improve the safety of a school
27 building, school grounds, or school buses.
28 (7) To pay capital expenses to improve the safety of a school
29 building.
30 (8) To establish and administer programs to address youth
31 specific mental illness, addiction, anger management, bullying,
32 and school violence.
33 (9) To develop and administer professional development
34 programs for teachers, administrators, and other school employees
35 designed to improve school safety and reduce violence.
36 (b) Except as provided in IC 20-46-9-22, A school corporation may
37 distribute, with the approval of the majority of members of the
38 governing body, a portion of the proceeds of a tax levy collected under
39 IC 20-46-9 that is deposited in the fund to a charter school, excluding
40 a virtual charter school, that is located within the attendance area of the
41 school corporation, to be used by the charter school for the purposes
42 described in subsection (a).
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1 (c) Expenditures paid using money collected from the levy shall be
2 included in a school's safety plan.
3 (d) Local law enforcement shall participate in:
4 (1) development of a school safety plan;
5 (2) development or updates to school emergency response
6 systems; and
7 (3) determination of capital expenses that would improve the
8 safety of a school building.
9 (e) Money in the fund may be transferred to the school corporation's
10 education fund (IC 20-40-2), operations fund (IC 20-40-18), or school
11 safety referendum debt service fund (IC 20-40-21), as applicable, to
12 pay for expenditures listed in subsection (a).
13 SECTION 14. IC 20-46-1-8, AS AMENDED BY P.L.162-2024,
14 SECTION 25, AND AS AMENDED BY P.L.36-2024, SECTION 10,
15 AND AS AMENDED BY P.L.104-2024, SECTION 51, AND AS
16 AMENDED BY THE TECHNICAL CORRECTIONS BILL OF THE
17 2025 GENERAL ASSEMBLY, IS CORRECTED AND AMENDED
18 TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2026]: Sec. 8.
19 (a) Subject to subsections (c), (d), and (e) (f), and (g) and this chapter,
20 the governing body of a school corporation may adopt a resolution to
21 place a referendum under this chapter on the ballot for any of the
22 following purposes:
23 (1) The governing body of the school corporation determines that
24 it cannot, in a calendar year, carry out its public educational duty
25 unless it imposes a referendum tax levy under this chapter.
26 (2) The governing body of the school corporation determines that
27 a referendum tax levy under this chapter should be imposed to
28 replace property tax revenue that the school corporation will not
29 receive because of the application of the credit under
30 IC 6-1.1-20.6.
31 (3) Except for resolutions described in subsection (b), The
32 governing body makes the determination required under
33 subdivision (1) or (2) and determines to share a portion of the
34 referendum proceeds with a charter school, excluding a virtual
35 charter school, in the manner prescribed in subsection (e). (d).
36 (b) A resolution for a referendum for a county described in section
37 21 of this chapter that is adopted after May 10, 2023, shall specify that
38 a portion of the proceeds collected from the proposed levy will be
39 distributed to applicable charter schools in the manner described under
40 section 21 of this chapter.
41 (c) (b) The governing body of the school corporation shall certify a
42 copy of the resolution to place a referendum on the ballot to the
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1 following:
2 (1) The department of local government finance, including:
3 (A) the language for the question required by section 10 of this
4 chapter, or in the case of a resolution to extend a referendum
5 levy certified to the department of local government finance
6 after March 15, 2016, section 10.1 of this chapter; and
7 (B) a copy of the revenue spending plan adopted under
8 subsection (g). (e).
9 The language of the public question must include the estimated
10 average percentage increases certified by the county auditor under
11 section 10(e) or 10.1(f) of this chapter, as applicable. The
12 governing body of the school corporation shall also provide the
13 county auditor's certification described in section 10(e) or 10.1(f)
14 of this chapter, as applicable. The department of local government
15 finance shall post the values certified by the county auditor to the
16 department's website. The department shall review the language
17 for compliance with section 10 or 10.1 of this chapter, whichever
18 is applicable, and either approve or reject the language. The
19 department shall send its decision to the governing body of the
20 school corporation not more than ten (10) days after both the
21 certification of the county auditor described in section 10(e) or
22 10.1(f) of this chapter, as applicable, and the resolution is are
23 submitted to the department. If the language is approved, the
24 governing body of the school corporation shall certify a copy of
25 the resolution, including the language for the question and the
26 department's approval.
27 (2) The county fiscal body of each county in which the school
28 corporation is located (for informational purposes only).
29 (3) The circuit court clerk of each county in which the school
30 corporation is located.
31 (d) (c) If a school safety referendum tax levy under IC 20-46-9 has
32 been approved by the voters in a school corporation at any time in the
33 previous three (3) years, the school corporation may not:
34 (1) adopt a resolution to place a referendum under this chapter on
35 the ballot; or
36 (2) otherwise place a referendum under this chapter on the ballot.
37 (e) Except as provided in section 21 of this chapter, (d) The
38 resolution described in subsection (a) must indicate whether proceeds
39 in the school corporation's education fund collected from a tax levy
40 under this chapter will be used to provide a distribution to a charter
41 school or charter schools, excluding a virtual charter school, under
42 IC 20-40-3-5 as well as the amount that will be distributed to the
2025 IN 336—LS 6781/DI 110 17
1 particular charter school or charter schools. A school corporation may
2 request from the designated charter school or charter schools any
3 financial documentation necessary to demonstrate the financial need of
4 the charter school or charter schools. Distribution to a charter school
5 of proceeds from a referendum held before May 10, 2023, does not
6 provide exemption from this chapter.
7 (f) This subsection applies to a resolution described in subsection
8 (a) for a county described in section 21(a) of this chapter that is
9 adopted after May 10, 2023. The resolution described in subsection (a)
10 shall include a projection of the amount that the school corporation
11 expects to be distributed to a particular charter school, excluding
12 virtual charter schools or adult high schools, under section 21 of this
13 chapter if the charter school voluntarily elects to participate in the
14 referendum in the manner described in subsection (i). At least sixty
15 (60) days before the resolution described in subsection (a) is voted on
16 by the governing body, the school corporation shall contact the
17 department to determine the number of students in kindergarten
18 through grade 12 who have legal settlement in the school corporation
19 but attend a charter school, excluding virtual charter schools or adult
20 high schools, and who receive not more than fifty percent (50%) virtual
21 instruction. The department shall provide the school corporation with
22 the number of students with legal settlement in the school corporation
23 who attend a charter school and who receive not more than fifty percent
24 (50%) virtual instruction, which shall be disaggregated for each
25 particular charter school, excluding a virtual charter school or adult
26 high school. The projection may include an expected increase in
27 charter schools during the term the levy is imposed under this chapter.
28 The department of local government finance shall prescribe the manner
29 in which the projection shall be calculated. The governing body shall
30 take into consideration the projection when adopting the revenue
31 spending plan under subsection (g).
32 (g) (e) As part of the resolution described in subsection (a), the
33 governing body of the school corporation shall adopt a revenue
34 spending plan for the proposed referendum tax levy that includes:
35 (1) an estimate of the amount of annual revenue expected to be
36 collected if a levy is imposed under this chapter;
37 (2) the specific purposes for which the revenue collected from a
38 levy imposed under this chapter will be used; and
39 (3) an estimate of the annual dollar amounts that will be expended
40 for each purpose described in subdivision (2). and
41 (4) for a resolution for a referendum that is adopted after May 10,
42 2023, for a county described in section 21(a) of this chapter, the
2025 IN 336—LS 6781/DI 110 18
1 projected revenue that shall be distributed to charter schools as
2 provided in subsections (f) and (i). The revenue spending plan
3 shall also take into consideration deviations in the proposed
4 revenue spending plan if the actual charter school distributions
5 exceed or are lower than the projected charter school distributions
6 described in subsection (f). The resolution shall include for each
7 charter school that elects to participate under subsection (i)
8 information described in subdivisions (1) through (3).
9 (h) (f) A school corporation shall specify in its proposed budget the
10 school corporation's revenue spending plan adopted under subsection
11 (g) (e) and annually present the revenue spending plan at its public
12 hearing on the proposed budget under IC 6-1.1-17-3.
13 (i) This subsection applies to a resolution described in subsection
14 (a) for a county described in section 21(a) of this chapter that is
15 adopted after May 10, 2023. At least forty-five (45) days before the
16 resolution described in subsection (a) is voted on by the governing
17 body, the school corporation shall contact each charter school,
18 excluding virtual charter schools or adult high schools, disclosed by the
19 department to the school corporation under subsection (f) to determine
20 whether the charter school will participate in the referendum. The
21 notice must include the total amount of the school corporation's
22 expected need, the corresponding estimate for that amount divided by
23 the number of students enrolled in the school corporation, and the date
24 on which the governing body of the school corporation will vote on the
25 resolution. The charter school must respond in writing to the school
26 corporation, which may be by electronic mail addressed to the
27 superintendent of the school corporation, at least fifteen (15) days
28 prior to the date that the resolution described in subsection (a) is to be
29 voted on by the governing body. If the charter school elects to not
30 participate in the referendum, the school corporation may exclude
31 distributions to the charter school under section 21 of this chapter and
32 from the projection described in subsection (f). If the charter school
33 elects to participate in the referendum, the charter school may receive
34 distributions under section 21 of this chapter and must be included in
35 the projection described in subsection (f). In addition, a charter school
36 that elects to participate in the referendum under this subsection shall
37 contribute a proportionate share of the cost to conduct the referendum
38 based on the total combined ADM of the school corporation and any
39 participating charter schools.
40 (j) This subsection applies to a resolution described in subsection
41 (a) for a county described in section 21(a) of this chapter that is
42 adopted after May 10, 2023. At least thirty (30) days before the
2025 IN 336—LS 6781/DI 110 19
1 resolution described in subsection (a) referendum submitted to the
2 voters under this chapter is voted on by the governing body, public in
3 a primary or general election, the school corporation that is pursuing
4 the resolution referendum and any charter school that has elected to
5 participate under subsection (i) shall post a referendum disclosure
6 statement on each school's respective website that contains the
7 following information:
8 (1) The salaries of all employees employed by position within the
9 school corporation or charter school listed from highest salary to
10 lowest salary and a link to Gateway Indiana for access to
11 individual salaries.
12 (2) An acknowledgment that the school corporation or charter
13 school is not committing any crime described in IC 35-44.1-1.
14 (3) A link to the school corporation's or charter school's most
15 recent state board of accounts audit on the state board of accounts'
16 website.
17 (4) The current enrollment of the school corporation or charter
18 school disaggregated by student group and race.
19 (5) The school corporation's or charter school's high school
20 graduation rate.
21 (6) The school corporation's or charter school's annual retention
22 rate for teachers for the previous five (5) years.
23 SECTION 15. IC 20-46-1-8.5, AS AMENDED BY P.L.189-2023,
24 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JANUARY 1, 2026]: Sec. 8.5. (a) A resolution to extend a referendum
26 levy must be:
27 (1) adopted by the governing body of a school corporation; and
28 (2) approved in a referendum under this chapter;
29 before December 31 of the final calendar year in which the school
30 corporation's previously approved referendum levy is imposed under
31 this chapter.
32 (b) For a resolution adopted under this section after May 10, 2023,
33 for a county described in section 21(a) of this chapter, the resolution
34 must include the projected charter school distributions described in
35 section 8(f) of this chapter and indicate the distributions to applicable
36 charter schools in accordance with section 21 of this chapter.
37 SECTION 16. IC 20-46-1-19.5, AS AMENDED BY P.L.189-2023,
38 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JANUARY 1, 2026]: Sec. 19.5. (a) Subject to section 8(d) 8(c) of this
40 chapter, if a referendum is approved by the voters in a school
41 corporation under this chapter in a calendar year, another referendum
42 may not be placed on the ballot in the school corporation under this
2025 IN 336—LS 6781/DI 110 20
1 chapter in the following calendar year.
2 (b) Notwithstanding any other provision of this chapter and in
3 addition to the restriction specified in subsection (a), if a school
4 corporation imposes in a calendar year a referendum levy approved in
5 a referendum under this chapter, the school corporation may not
6 simultaneously impose in that calendar year more than one (1)
7 additional referendum levy approved in a subsequent referendum under
8 this chapter.
9 SECTION 17. IC 20-46-1-21 IS REPEALED [EFFECTIVE
10 JANUARY 1, 2026]. Sec. 21. (a) This section applies to revenue
11 received from a resolution that is approved by the governing body to
12 impose a referendum levy under section 8 or 8.5 of this chapter after
13 May 10, 2023, for a school corporation located in:
14 (1) Lake County;
15 (2) Marion County;
16 (3) St. Joseph County; or
17 (4) Vanderburgh County.
18 (b) The county auditor in which the school corporation is located
19 shall distribute an amount under subsection (d) to each charter school,
20 excluding virtual charter schools or adult high schools, that a student
21 who resides within the attendance area of the school corporation
22 attends if the charter school elects to participate in the referendum
23 under section 8(i) of this chapter. The department shall provide the
24 county auditor with data and information necessary for the county
25 auditor to determine:
26 (1) which charter schools are eligible to receive a distribution
27 under this section; and
28 (2) the number of students who reside within the attendance area
29 of the school corporation who are included in the ADM for each
30 charter school, excluding virtual charter schools or adult high
31 schools, described in subdivision (1).
32 (c) The following schools are not eligible to receive a distribution
33 under this section:
34 (1) A virtual charter school.
35 (2) An adult high school.
36 (d) For the purposes of the calculations made in this subsection,
37 each eligible school that has entered into an agreement with a school
38 corporation to participate as a participating innovation network charter
39 school under IC 20-25.7-5 is considered to have an ADM that is
40 separate from the school corporation. The amount that the county
41 auditor shall distribute to a charter school, excluding virtual charter
42 schools or adult high schools, under this section is the amount
2025 IN 336—LS 6781/DI 110 21
1 determined in the last STEP of the following STEPS:
2 STEP ONE: Determine, for each charter school, excluding virtual
3 charter schools or adult high schools, that is eligible to receive a
4 distribution under this section, the number of students who reside
5 within the attendance area of the school corporation who are
6 currently included in the ADM of the charter school.
7 STEP TWO: Determine the sum of:
8 (A) the current ADM count for the school corporation; plus
9 (B) total number of all students who reside within the
10 attendance area of the school corporation who are currently
11 included in the ADM of a charter school, excluding virtual
12 charter schools or adult high schools.
13 STEP THREE: Determine the result of:
14 (A) the STEP ONE amount; divided by
15 (B) the STEP TWO amount.
16 STEP FOUR: Determine the result of:
17 (A) the STEP THREE amount; multiplied by
18 (B) the amount collected by the county auditor during the most
19 recent installment period.
20 SECTION 18. IC 20-46-8-11.2 IS REPEALED [EFFECTIVE
21 JANUARY 1, 2026]. Sec. 11.2. (a) This section applies only to revenue
22 collected after June 30, 2024, from a tax levy imposed under this
23 chapter by a school corporation located in:
24 (1) Lake County;
25 (2) Marion County;
26 (3) St. Joseph County; or
27 (4) Vanderburgh County.
28 However, this section does not apply to, and distributions are not
29 required for, a school corporation that is designated as a distressed
30 political subdivision under IC 6-1.1-20.3.
31 (b) Beginning in calendar year 2025, and each year thereafter, and
32 subject to subsections (c) and (h), the county auditor shall distribute,
33 as provided under subsection (f), an amount of revenue received from
34 a tax levy imposed by a school corporation under this chapter to each
35 charter school that is eligible for a distribution under subsection (d) and
36 as set forth in subsection (f).
37 (c) The following schools are not eligible to receive a distribution
38 under this section:
39 (1) A virtual charter school.
40 (2) An adult high school.
41 (d) Not later than thirty (30) days before the date that the county
42 auditor distributes money for a school corporation's operations fund (IC
2025 IN 336—LS 6781/DI 110 22
1 20-40-18) under IC 6-1.1-27, the department, in consultation with the
2 department of local government finance, shall determine the
3 corresponding percentages of revenue received from the tax levy that
4 must be distributed among the school corporation and each eligible
5 charter school according to the following formula:
6 STEP ONE: Determine each charter school that:
7 (A) is located in the same county as the school corporation;
8 and
9 (B) provides not more than fifty percent (50%) virtual
10 instruction for its students.
11 STEP TWO: Determine, for each charter school described in
12 STEP ONE, the number of students who:
13 (A) have legal settlement within the school corporation;
14 (B) are currently included in the fall ADM for the charter
15 school; and
16 (C) receive not more than fifty percent (50%) virtual
17 instruction.
18 STEP THREE: Determine the sum of:
19 (A) the aggregate of the STEP TWO results for all applicable
20 charter schools; plus
21 (B) the fall ADM count for the school corporation for students
22 receiving not more than fifty percent (50%) virtual instruction.
23 STEP FOUR: For each charter school described in STEP ONE,
24 determine the result of:
25 (A) the applicable STEP TWO amount; divided by
26 (B) the STEP THREE amount;
27 expressed as a percentage.
28 STEP FIVE: Determine the sum of all the amounts computed
29 under STEP FOUR and subtract the result from one hundred
30 percent (100%).
31 (e) The department shall provide to the county auditor, immediately
32 after calculation under subsection (d), and in the form prescribed by the
33 county auditor:
34 (1) each charter school determined under STEP ONE of
35 subsection (d) and the charter school's corresponding percentage
36 calculated under STEP FOUR of subsection (d); and
37 (2) the percentage calculated under STEP FIVE of subsection (d)
38 for the school corporation.
39 (f) The county auditor shall distribute to the school corporation and
40 each applicable charter school the amount determined in the last STEP
41 of the following STEPS:
42 STEP ONE: For each school corporation, determine a base
2025 IN 336—LS 6781/DI 110 23
1 property tax levy amount calculated as:
2 (A) the sum of the school corporation's operations fund
3 property tax levies collected under this chapter in calendar
4 years 2021, 2022, and 2023; divided by
5 (B) three (3).
6 STEP TWO: For each school corporation, determine an
7 incremental property tax levy amount calculated as:
8 (A) the school corporation's operations fund property tax levy
9 collections for the current calendar year; minus
10 (B) the school corporation's base property tax levy collections
11 determined under STEP ONE.
12 STEP THREE: For the school corporation and each applicable
13 charter school, determine the result of:
14 (A) the incremental amount determined under STEP TWO;
15 multiplied by
16 (B) the following percentage:
17 (i) In the case of an applicable charter school, the charter
18 school's percentage under STEP FOUR of subsection (d).
19 (ii) In the case of the school corporation, the school
20 corporation's percentage under STEP FIVE of subsection
21 (d).
22 (g) Before October 1, 2024, and before October 1 of each year
23 thereafter, the department shall provide to each school corporation and
24 each eligible charter school an estimate of the amount of property tax
25 levy revenue the school corporation and charter school are expected to
26 receive under this section.
27 (h) In order to receive a distribution under this section, the
28 governing body of an eligible charter school shall, before November 1,
29 2024, and before November 1 of each year thereafter, adopt a budget
30 for the school year. Not later than ten (10) days before its adoption, the
31 budget must be fixed and presented to the charter board in a public
32 meeting in the county in which the charter school is incorporated. A
33 budget that is adopted under this subsection must be submitted to the
34 charter authorizer for review and to the department of local government
35 finance to be posted publicly on the computer gateway under
36 IC 6-1.1-17-3.
37 (i) Before April 1, 2025, and before April 1 of each year thereafter,
38 the county auditor shall provide each school corporation and each
39 eligible charter school the actual amount of property tax levy revenue
40 the school corporation and charter school are expected to receive under
41 this section.
42 SECTION 19. IC 20-46-9-6, AS AMENDED BY P.L.162-2024,
2025 IN 336—LS 6781/DI 110 24
1 SECTION 26, AND AS AMENDED BY P.L.156-2024, SECTION 30,
2 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
3 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
4 AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
5 2026]: Sec. 6. (a) Subject to this chapter, the governing body of a
6 school corporation may adopt a resolution to place a referendum under
7 this chapter on the ballot if the governing body of the school
8 corporation determines that a referendum levy should be imposed for
9 measures to improve school safety as described in IC 20-40-20-6(a) or
10 IC 20-40-20-6(b).
11 (b) Except as provided in section 22 of this chapter, A school
12 corporation may, with the approval of the majority of members of the
13 governing body, distribute a portion of the proceeds of a tax levy
14 collected under this chapter that is deposited in the fund to a charter
15 school, excluding a virtual charter school, that is located within the
16 attendance area of the school corporation, to be used by the charter
17 school for the purposes described in IC 20-40-20-6(a).
18 (c) This subsection applies to a resolution described in subsection
19 (a) that is adopted after May 10, 2023, in a county described in section
20 22(a) of this chapter. A resolution shall specify that a portion of the
21 proceeds of the proposed levy will be distributed to applicable charter
22 schools in the manner described under section 22 of this chapter if the
23 charter school voluntarily elects to participate in the referendum in the
24 manner described in subsection (i).
25 (d) This subsection applies to a resolution described in subsection
26 (a) that is adopted after May 10, 2023, in a county described in section
27 22(a) of this chapter. The resolution described in subsection (a) shall
28 include a projection of the amount that the school corporation expects
29 to be distributed to a particular charter school, excluding virtual charter
30 schools or adult high schools, under section 22 of this chapter that
31 elects to participate in the referendum under subsection (i). At least
32 sixty (60) days before the resolution described in subsection (a) is
33 voted on by the governing body, the school corporation shall contact
34 the department to determine the number of students in kindergarten
35 through grade 12 who have legal settlement in the school corporation
36 but attend a charter school, excluding virtual charter schools or adult
37 high schools, and who receive not more than fifty percent (50%) virtual
38 instruction. The department shall provide the school corporation with
39 the number of students with legal settlement in the school corporation
40 who attend a charter school, which shall be disaggregated for each
41 particular charter school, excluding a virtual charter school or adult
42 high school. The projection may include an expected increase in
2025 IN 336—LS 6781/DI 110 25
1 charter schools during the term the levy is imposed. The department of
2 local government finance shall prescribe the manner in which the
3 projection shall be calculated. The governing body shall take into
4 consideration the projection when adopting the revenue spending plan
5 under subsection (g).
6 (e) (c) The governing body of the school corporation shall certify a
7 copy of the resolution to the following:
8 (1) The department of local government finance, including:
9 (A) the language for the question required by section 9 of this
10 chapter, or in the case of a resolution to extend a referendum
11 levy certified to the department of local government finance,
12 section 10 of this chapter; and
13 (B) a copy of the revenue spending plan adopted under
14 subsection (g). (e).
15 The language of the public question must include the estimated
16 average percentage increases certified by the county auditor under
17 section 9(d) or 10(f) of this chapter, as applicable. The governing
18 body of the school corporation shall also provide the county
19 auditor's certification described in section 9(d) or 10(f) of this
20 chapter, as applicable. The department of local government
21 finance shall post the values certified by the county auditor to the
22 department's website. The department shall review the language
23 for compliance with section 9 or 10 of this chapter, whichever is
24 applicable, and either approve or reject the language. The
25 department shall send its decision to the governing body of the
26 school corporation not more than ten (10) days after both the
27 certification of the county auditor described in section 9(d) or
28 10(f) of this chapter, as applicable, and the resolution is are
29 submitted to the department. If the language is approved, the
30 governing body of the school corporation shall certify a copy of
31 the resolution, including the language for the question and the
32 department's approval.
33 (2) The county fiscal body of each county in which the school
34 corporation is located (for informational purposes only).
35 (3) The circuit court clerk of each county in which the school
36 corporation is located.
37 (f) Except as provided in section 22 of this chapter, (d) The
38 resolution described in subsection (a) must indicate whether proceeds
39 in the school corporation's fund collected from a tax levy under this
40 chapter will be used to provide a distribution to a charter school or
41 charter schools, excluding a virtual charter school, under
42 IC 20-40-20-6(b) as well as the amount that will be distributed to the
2025 IN 336—LS 6781/DI 110 26
1 particular charter school or charter schools. A school corporation may
2 request from the designated charter school or charter schools any
3 financial documentation necessary to demonstrate the financial need of
4 the charter school or charter schools.
5 (g) (e) As part of the resolution described in subsection (a), the
6 governing body of the school corporation shall adopt a revenue
7 spending plan for the proposed referendum tax levy that includes:
8 (1) an estimate of the amount of annual revenue expected to be
9 collected if a levy is imposed under this chapter;
10 (2) the specific purposes described in IC 20-40-20-6 for which the
11 revenue collected from a levy imposed under this chapter will be
12 used; and
13 (3) an estimate of the annual dollar amounts that will be expended
14 for each purpose described in subdivision (2). and
15 (4) for a resolution for a referendum that is adopted after May 10,
16 2023, for a county described in section 22(a) of this chapter, the
17 projected revenue that shall be distributed to charter schools as
18 provided in subsection (d). The revenue spending plan shall also
19 take into consideration deviations in the proposed revenue
20 spending plan if the actual charter school distributions exceed or
21 are lower than the projected charter school distributions described
22 in subsection (d). The resolution shall include for each charter
23 school that elects to participate under subsection (i) information
24 described in subdivisions (1) through (3).
25 (h) (f) A school corporation shall specify in its proposed budget the
26 school corporation's revenue spending plan adopted under subsection
27 (g) (e) and annually present the revenue spending plan at its public
28 hearing on the proposed budget under IC 6-1.1-17-3.
29 (i) This subsection applies to a resolution described in subsection
30 (a) for a county described in section 22(a) of this chapter that is
31 adopted after May 10, 2023. At least forty-five (45) days before the
32 resolution described in subsection (a) is voted on by the governing
33 body, the school corporation shall contact each charter school,
34 excluding virtual charter schools or adult high schools, disclosed by the
35 department to the school corporation under subsection (f) to determine
36 whether the charter school will participate in the referendum. The
37 notice must include the total amount of the school corporation's
38 expected need, the corresponding estimate of that amount divided by
39 the number of students enrolled in the school corporation, and the date
40 on which the governing body of the school corporation will vote on the
41 resolution. The charter school must respond in writing to the school
42 corporation, which may be by electronic mail addressed to the
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1 superintendent of the school corporation, at least fifteen (15) days
2 prior to the date that the resolution described in subsection (a) is to be
3 voted on by the governing body. If the charter school elects to not
4 participate in the referendum, the school corporation may exclude
5 distributions to the charter school under section 22 of this chapter and
6 from the projection described in subsection (d). If the charter school
7 elects to participate in the referendum, the charter school may receive
8 distributions under section 22 of this chapter and must be included in
9 the projection described in subsection (d). In addition, a charter school
10 that elects to participate in the referendum under this subsection shall
11 contribute a proportionate share of the cost to conduct the referendum
12 based on the total combined ADM of the school corporation and any
13 participating charter schools.
14 (j) This subsection applies to a resolution described in subsection
15 (a) for a county described in section 22(a) of this chapter that is
16 adopted after May 10, 2023. At least thirty (30) days before the
17 resolution described in subsection (a) referendum submitted to the
18 voters under this chapter is voted on by the governing body, public in
19 a primary or general election, the school corporation that is pursuing
20 the resolution referendum and any charter school that has elected to
21 participate under subsection (i) shall post a referendum disclosure
22 statement on each school's respective website that contains the
23 following information:
24 (1) The salaries of all employees employed by position within the
25 school corporation or charter school listed from highest salary to
26 lowest salary and a link to Gateway Indiana for access to
27 individual salaries.
28 (2) An acknowledgment that the school corporation or charter
29 school is not committing any crime described in IC 35-44.1-1.
30 (3) A link to the school corporation's or charter school's most
31 recent state board of accounts audit on the state board of accounts'
32 website.
33 (4) The current enrollment of the school corporation or charter
34 school disaggregated by student group and race.
35 (5) The school corporation's or charter school's high school
36 graduation rate.
37 (6) The school corporation's or charter school's annual retention
38 rate for teachers for the previous five (5) years.
39 SECTION 20. IC 20-46-9-7, AS AMENDED BY P.L.189-2023,
40 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JANUARY 1, 2026]: Sec. 7. (a) A resolution to extend a referendum
42 levy must be:
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1 (1) adopted by the governing body of a school corporation; and
2 (2) approved in a referendum under this chapter;
3 before December 31 of the final calendar year in which the school
4 corporation's previously approved referendum levy is imposed under
5 this chapter.
6 (b) For a resolution adopted under this section after May 10, 2023,
7 for a county described in section 22(a) of this chapter, the resolution
8 must include the projected charter school distributions described in
9 section 6(d) of this chapter and indicate the distributions to applicable
10 charter schools in accordance with section 22 of this chapter.
11 SECTION 21. IC 20-46-9-22 IS REPEALED [EFFECTIVE
12 JANUARY 1, 2026]. Sec. 22. (a) This section applies to revenue
13 received from a resolution that is approved by the governing body to
14 impose a referendum levy under section 6 or 7 of this chapter after May
15 10, 2023, for a school corporation located in:
16 (1) Lake County;
17 (2) Marion County;
18 (3) St. Joseph County; or
19 (4) Vanderburgh County.
20 (b) The county auditor shall distribute an amount under subsection
21 (d) to each charter school, excluding virtual charter schools or adult
22 high schools, that a student who resides within the attendance area of
23 the school corporation attends if the charter school, excluding virtual
24 charter schools or adult high schools, elects to participate in the
25 referendum under section 6(i) of this chapter. The department shall
26 provide the county auditor with data and information necessary for the
27 county auditor to determine:
28 (1) which charter schools, excluding virtual charter schools or
29 adult high schools, are eligible to receive a distribution under this
30 section; and
31 (2) the number of all students who reside within the attendance
32 area of the school corporation who are included in the ADM for
33 each charter school, excluding virtual charter schools or adult
34 high schools, described in subdivision (1).
35 (c) The following schools are not eligible to receive a distribution
36 under this section:
37 (1) A virtual charter school.
38 (2) An adult high school.
39 (d) For the purposes of the calculations made in this subsection,
40 each eligible school that has entered into an agreement with a school
41 corporation to participate as a participating innovation network charter
42 school under IC 20-25.7-5 is considered to have an ADM that is
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1 separate from the school corporation. The amount that the county
2 auditor shall distribute to a charter school, excluding virtual charter
3 schools or adult high schools, under this section is the amount
4 determined in the last STEP of the following STEPS:
5 STEP ONE: Determine, for each charter school, excluding virtual
6 charter schools or adult high schools, that is eligible to receive a
7 distribution under this section, the number of students who reside
8 within the attendance area of the school corporation who are
9 currently included in the ADM of the charter school.
10 STEP TWO: Determine the sum of:
11 (A) the current ADM count for the school corporation; plus
12 (B) the total number of students who reside within the
13 attendance area of the school corporation who are currently
14 included in the ADM of a charter school, excluding virtual
15 charter schools or adult high schools.
16 STEP THREE: Determine the result of:
17 (A) the STEP ONE amount; divided by
18 (B) the STEP TWO amount.
19 STEP FOUR: Determine the result of:
20 (A) the STEP THREE amount; multiplied by
21 (B) the amount collected by the county auditor during the most
22 recent installment period.
23 (e) If a charter school receives a distribution under this section, the
24 distribution may be used only for the purposes described in
25 IC 20-40-20-6(a).
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