CHAPTER 2. ADMINISTRATION OF VETERANS MEMORIAL SCHOOL CONSTRUCTION FUND; SCHOOL DISASTER LOAN FUND
IC 20-49-2
Chapter 2. Administration of Veterans Memorial SchoolConstruction Fund; School Disaster Loan Fund
IC 20-49-2-1
"Advancement"
Sec. 1. As used in this chapter, "advancement" refers to anadvance payment to a school corporation under this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-2
Establishment of fund
Sec. 2. The veterans memorial school construction fund isestablished. The state board shall administer the fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-3
Duties; state board
Sec. 3. (a) The state board shall carry out this chapter.
(b) The state superintendent shall, from funds appropriated foradministering this chapter, provide office space and employees toenable the state board to perform the duties required under thischapter.
(c) The state board may adopt rules under IC 4-22-2 necessary forthe proper administration of the veterans memorial schoolconstruction fund and for carrying out this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-4
Powers; advancements to school corporations; purposes
Sec. 4. Subject to this chapter, the state board may order theauditor of state to periodically make an advancement from the stategeneral fund for the construction, remodeling, or repair of schoolbuildings to any school corporation.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-5
Limitation; total loans from fund
Sec. 5. The state board may not order advancements under thischapter during any fiscal year that in total exceed the sum of:
(1) the balance remaining in the veterans memorial schoolconstruction fund at the end of the preceding fiscal year; and
(2) all accruals and transfers to the veterans memorial schoolconstruction fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-6
Limitations on eligibility for advancement
Sec. 6. A school corporation is not entitled to an advancementunder this chapter under the following circumstances: (1) An advancement may not be made to any organized jointschool district or to any school corporation within anyorganized joint school district when the advancement is to beused in connection with the enlargement or construction of ajoint school.
(2) An advancement may not be made to a school corporationwhose average resident enrollment in:
(A) grades 1 through 8 is less than thirty (30) per grade; or
(B) grades 9 through 12 is less than two hundred seventy(270);
in the proposed school building to be built.
(3) A school corporation is not entitled to an advancement if:
(A) the school corporation has used the maximum amountallowable under the Constitution of the State of Indiana andIndiana law for the construction of school facilities; and
(B) more than thirty-five percent (35%) of the total cost ofthe facilities has been to build or enlarge a gymnasium, anauditorium, or an athletic facility.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-7
Required compliance with chapter
Sec. 7. All advancements made by the state board must complywith this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-8
Limitations on purposes of advancements
Sec. 8. An advancement may not be made for:
(1) any purpose other than the construction, remodeling, orrepairing of school buildings and classrooms; or
(2) gymnasiums, auditoriums, or any athletic facilities.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-9
Maximum advancement; nonemergency
Sec. 9. A nondisaster advancement to any school corporationunder section 10 of this chapter may not exceed two hundred fiftythousand dollars ($250,000). However, this dollar limitation iswaived if:
(1) the school corporation has an assessed valuation per ADAof less than eight thousand four hundred dollars ($8,400); and
(2) the school corporation's debt service fund tax rate wouldexceed one dollar ($1) for each one hundred dollars ($100) ofassessed valuation without a waiver of the dollar limitation.
As added by P.L.2-2006, SEC.172. Amended by P.L.182-2009(ss),SEC.360.
IC 20-49-2-10
Restrictions on nonemergency advancements Sec. 10. The state board shall make nondisaster advancements toschool corporations under this chapter only when the followingconditions exist:
(1) The school buildings and classrooms of any schoolcorporation are not adequate for the proper education of thestudents in that public school or school corporation, and theschool corporation is unable to finance the construction,remodeling, or repair of the necessary classrooms underexisting debt and tax limitations without undue financialhardship.
(2) The school corporation has issued its bonds to construct,remodel, or repair schools and school buildings in ninetypercent (90%) of the maximum amount allowable under theConstitution of the State of Indiana and Indiana law.
(3) The school corporation does not have funds available for theconstruction, remodeling, or repair of school buildings andclassrooms sufficient to meet the requirements for the propereducation of the school corporation's students.
(4) The school corporation has established and maintained aproperty tax levy in the amount of at least sixteen andsixty-seven hundredths cents ($0.1667) on each one hundreddollars ($100) of taxable property within the school corporationfor school building purposes continuously for three (3) yearsbefore the time when the school corporation makes anapplication to the state board for an advancement.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-11
Disaster loans; maximum advancement
Sec. 11. (a) The state board may make a disaster loan to a schoolcorporation that has suffered loss by fire, flood, windstorm, or otherdisaster that makes all or part of the school building or buildingsunfit for school purposes as described in IC 20-26-7-29 throughIC 20-26-7-34.
(b) A loan made under this section may not exceed three milliondollars ($3,000,000). The school corporation shall repay the loanwithin twenty (20) years at an annual interest rate of one percent(1%) of the unpaid balance.
(c) The amounts repaid by school corporations under subsection(b) shall be deposited in a fund to be known as the school disasterloan fund. The money remaining in the school disaster loan fund atthe end of a state fiscal year does not revert to the state general fund.The state board may use the money in the school disaster loan fundonly to make disaster loans to school corporations under this section.
(d) Sections 13, 14, and 15 of this chapter do not apply to loansmade under this section.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-12
Application procedures Sec. 12. Any school corporation desiring to obtain anadvancement under this chapter shall submit to the state board averified application stating:
(1) the existing condition concerning the need for money to beused to construct, remodel, or repair a school building in theschool corporation;
(2) the amount of money needed; and
(3) any other information requested by the state board.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-13
Calculations; school building index; tax ability
Sec. 13. (a) The state board shall compute and assign to theapplicant school corporation a school building index that is the ratioof the school building need, in terms of money, to the schoolcorporation's tax ability, in terms of money.
(b) For purposes of this section, the school building need, in termsof money, of a school corporation is the amount determined underSTEP FOUR of the following formula:
STEP ONE: Add the ADA of students in grades 1 through 12of the school corporation during the current school year inwhich application for an advancement is made and twice theADA increase of the school corporation for the preceding three(3) years. However, the state board may make adjustments toreflect the effect of changes of boundary lines, loss of transferstudents, or loss of resident students to private, parochial, orcooperative program schools within the three (3) year period.
STEP TWO: Divide the STEP ONE amount by twenty-five (25)to determine the number of classrooms needed to house theestimated enrollment increase.
STEP THREE: Subtract from the STEP TWO amount thenumber of classrooms that:
(A) are owned, under a lease-rental arrangement, or underconstruction in the school corporation; and
(B) were constructed for and normally used for classroompurposes at the time of making application for anadvancement.
However, there shall not be subtracted classrooms in a buildingor buildings found to be inadequate for the proper education ofstudents under standards and procedures prescribed by the stateboard or that have been condemned under IC 20-26-7-29through IC 20-26-7-34 and that are to be replaced by fundsapplied for.
STEP FOUR: Multiply the STEP THREE amount by twentythousand dollars ($20,000).
(c) For purposes of this section, the school corporation's taxability, in terms of money, is the amount determined under STEPTWO of the following formula:
STEP ONE: Determine six and one-half percent (6 1/2%) of theadjusted value of taxable property in a school corporation as
determined under IC 36-1-15-4 for state and county taxesimmediately preceding the date of application.
STEP TWO: Subtract from the STEP ONE amount the sum ofthe following:
(A) The principal amount of any outstanding generalobligation bonds of the school corporation.
(B) The principal amount of outstanding obligations of anycorporation or holding company that has entered into alease-rental agreement with the applicant school corporation.
(C) The principal amount of outstanding civil township,town, or city school building bonds.
If the school corporation's tax ability is less than one hundred dollars($100), the school corporation's tax ability is considered for purposesof this section as being one hundred dollars ($100).
As added by P.L.2-2006, SEC.172.
IC 20-49-2-14
Prioritizing nonemergency loans
Sec. 14. School corporations having the highest school buildingindex must be considered first for advancements. The advancementsmust be made in descending order of need as shown by the schoolbuilding index. The state board, after giving consideration to the:
(1) relative order of the various applicant school corporationswith regard to the school building index;
(2) matters and facts that are required to be considered underthis chapter; and
(3) intent and purposes of this chapter;
shall make an advancement to the various school corporations for thepurpose of construction, remodeling, or repairing in the amounts thatare found by the state board to be necessary to enable the schoolcorporations to provide for the classrooms and school buildingsnecessary and required to place the educational facilities of theschool corporations on as nearly a uniform and relatively adequatebasis as possible.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-15
Repayment of advancement; state tuition support
Sec. 15. (a) An advancement under this chapter is not anobligation of the school corporation within the meaning of thelimitation against indebtedness under the Constitution of the State ofIndiana. This chapter does not relieve the governing body of a schoolcorporation of any obligation under Indiana law to qualify the schoolcorporation for state tuition support. The school corporation mustperform all the acts necessary to obtain state tuition supportpayments.
(b) A school corporation receiving an advancement under thischapter shall agree to have the total amount of the money advancedplus one percent (1%) of the outstanding balance deducted from thedistribution of state tuition support: (1) for a period not to exceed twenty (20) years; or
(2) until all the money advanced plus one percent (1%) has beendeducted.
(c) The state board shall reduce the amount of each distributionof state tuition support to any school corporation that has received anadvancement under this chapter in an amount to be agreed uponbetween the state board and the school corporation. The amount mustinclude one percent (1%) on the balance of the advancement.However, if a school corporation:
(1) has received an advancement or advancements to replace abuilding or buildings under this chapter; and
(2) has not abandoned the building or buildings for classroompurposes upon completion of the classrooms for which theapplication for funds has been made;
the state board may amend the amount of the deductions. Theamended deduction may include all state tuition support payable tothe school corporation.
(d) If an advancement:
(1) has been previously made under this chapter; and
(2) was to be repaid within a period of less than twenty (20)years;
the receiving school corporation and the state board may renegotiatethe agreement for repayment. The new agreement may provide anyperiod of repayment by the receiving school corporation as long asthe period does not exceed twenty (20) years from the date of theoriginal advancement.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-16
Power; levy to replace amount deducted from state tuition support
Sec. 16. A school corporation receiving an advancement underthis chapter may annually levy a tax in the debt service fund toreplace the amount deducted in the current year from the distributionof state tuition support under this chapter. The amount received fromthe tax shall be transferred from the debt service fund to the generalfund.
As added by P.L.2-2006, SEC.172.
IC 20-49-2-17
Transfer between funds; amount of advancements
Sec. 17. (a) The auditor of state shall on December 31 and June30 of each year transfer from the veterans memorial schoolconstruction fund to the state general fund the total amount of moneyadvanced by the state board from the state general fund to schoolcorporations under this chapter.
(b) The auditor of state shall at the time of a distribution of statetuition support transfer to the veterans memorial school constructionfund an amount equal to the amount withheld from the distributionto school corporations that have received advancements under thischapter.As added by P.L.2-2006, SEC.172.
IC 20-49-2-18
Duty; erection of plaque
Sec. 18. Each school corporation that receives funds under thischapter shall provide a suitable plaque of a permanent naturecommemorating the veterans who served in the armed forces of theUnited States. The plaque must be in a form recommended by thestate board.
As added by P.L.2-2006, SEC.172.