IC 4-10-18
    Chapter 18. The Counter-Cyclical Revenue and EconomicStabilization Fund

IC 4-10-18-1
Definitions
    Sec. 1. As used in this chapter:
    "Adjusted personal income" for a particular calendar year meansthe adjusted state personal income for that year as determined undersection 3(b) of this chapter.
    "Annual growth rate" for a particular calendar year means thepercentage change in adjusted personal income for the particularcalendar year as determined under section 3(c) of this chapter.
    "Budget director" refers to the director of the budget agencyestablished under IC 4-12-1.
    "Costs" means the cost of construction, equipment, land, propertyrights (including leasehold interests), easements, franchises, leases,financing charges, interest costs during and for a reasonable periodafter construction, architectural, engineering, legal, and otherconsulting or advisory services, plans, specifications, surveys, costestimates, and other costs or expenses necessary or incident to theacquisition, development, construction, financing, and operating ofan economic growth initiative.
    "Current calendar year" means a calendar year during which atransfer to or from the fund is initially determined under sections 4and 5 of this chapter.
    "Economic growth initiative" means:
        (1) the construction, extension, or completion of sewerlines,waterlines, streets, sidewalks, bridges, roads, highways, publicways, and any other infrastructure improvements;
        (2) the leasing or purchase of land and any site improvementsto land;
        (3) the construction, leasing, or purchase of buildings or otherstructures;
        (4) the rehabilitation, renovation, or enlargement of buildingsor other structures;
        (5) the leasing or purchase of machinery, equipment, orfurnishings; or
        (6) the training or retraining of employees whose jobs will becreated or retained as a result of the initiative.
    "Fund" means the counter-cyclical revenue and economicstabilization fund established under this chapter.
    "General fund revenue" means all general purpose tax revenueand other unrestricted general purpose revenue of the state, includingfederal revenue sharing monies, credited to the state general fund andfrom which appropriations may be made.
    "Implicit price deflator for the gross national product" means theimplicit price deflator for the gross national product, or its closestequivalent, which is available from the United States Bureau ofEconomic Analysis.    "Political subdivision" has the meaning set forth in IC 36-1-2-13.
    "Qualified economic growth initiative" means an economicgrowth initiative that is:
        (1) proposed by or on behalf of a political subdivision topromote economic growth, including the creation or retentionof jobs or the infrastructure necessary to create or retain jobs;
        (2) supported by a financing plan by or on behalf of the politicalsubdivision in an amount at least equal to the proposed amountof the grant under section 15 of this chapter; and
        (3) estimated to cost not less than twelve million five hundredthousand dollars ($12,500,000).
    "State personal income" means state personal income as that termis defined by the Bureau of Economic Analysis of the United StatesDepartment of Commerce or its successor agency.
    "Total state general fund revenue" for a particular state fiscal yearmeans the amount of that revenue for the particular state fiscal yearas finally determined by the auditor of state.
    "Transfer payments" means transfer payments as that term isdefined by the Bureau of Economic Analysis of the United StatesDepartment of Commerce or its successor agency.
As added by Acts 1982, P.L.22, SEC.1. Amended by P.L.28-1993,SEC.1; P.L.146-2008, SEC.8.

IC 4-10-18-2
Establishment; administration by state treasurer
    Sec. 2. (a) A counter-cyclical revenue and economic stabilizationfund is established to assist in stabilizing revenue during periods ofeconomic recession.
    (b) The treasurer of state shall administer the fund. Amounts inthe fund may be combined by the treasurer with other amounts in thestate treasury for the purposes of cash management. The earningsfrom the investment of the fund accrue to the fund. The fund shall beaccounted for separately from other state funds. The money in thefund at the end of a state fiscal year does not revert to the stategeneral fund.
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-3
Determination of adjusted personal income and annual growthrate
    Sec. 3. (a) Each year, the budget director shall determine theadjusted personal income, and the annual growth rate, for Indiana.
    (b) The budget director shall determine the adjusted personalincome for a particular calendar year in the following manner:
        STEP ONE: Calculate the average implicit price deflator for thegross national product for the state fiscal year ending in thatcalendar year by totaling the implicit price deflator for the grossnational product for each quarter of the state fiscal year anddividing that total by four (4).
        STEP TWO: Calculate the remainder of the total state personal

income for the calendar year minus any transfer payments madein Indiana for the calendar year.
        STEP THREE: Calculate the quotient of the result of STEPTWO divided by the result of STEP ONE.
        STEP FOUR: Calculate the product of one hundred (100)multiplied by the result of STEP THREE. This product is theadjusted personal income for the particular calendar year.
    (c) The annual growth rate for a particular calendar year equalsthe quotient of: (1) the remainder of: (A) the adjusted personalincome for the particular calendar year; minus (B) the adjustedpersonal income for the calendar year immediately preceding theparticular calendar year; divided by (2) the adjusted personal incomefor the calendar year immediately preceding the particular calendaryear. The annual growth rate shall be expressed as a percentage andshall be rounded to the nearest one-tenth of one percent (.1%).
    (d) If the Bureau of Economic Analysis of the United StatesDepartment of Commerce, or its successor agency, changes the baseyear on which it calculates the implicit price deflator for the grossnational product, the budget director shall adjust the implicit pricedeflator for the gross national product used in making the calculationin subsection (b) to compensate for that change in the base year.
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-4
Annual appropriation to and from general fund; determination ofamount
    Sec. 4. (a) If the annual growth rate for the calendar yearpreceding the current calendar year exceeds two percent (2%), thereis appropriated to the fund from the state general fund, for the statefiscal year beginning in the current calendar year, an amount equalto the product of: (1) the total state general fund revenues for thestate fiscal year ending in the current calendar year; multiplied by (2)the remainder of: (A) the annual growth rate for the calendar yearpreceding the current calendar year; minus (B) two percent (2%).
    (b) If the annual growth rate for the calendar year immediatelypreceding the current calendar year is less than a negative twopercent (-2%), there is appropriated from the fund to the state generalfund, for the state fiscal year beginning in the current calendar year,an amount equal to the product of: (1) the total state general fundrevenues for the state fiscal year ending in the current calendar year;multiplied by (2) negative one (-1); and further multiplied by (3) theremainder of: (A) the annual growth rate for the calendar yearpreceding the current calendar year; minus (B) negative two percent(-2%).
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-5
Annual appropriation to and from general fund; certification ofamount; transfer of funds
    Sec. 5. (a) As soon as the auditor of state makes a final

determination of the amount of total state general fund revenues fora particular state fiscal year, he shall certify that amount to thebudget director.
    (b) As soon as possible after receiving the certification from theauditor of state under subsection (a), the budget director shalldetermine the amount, if any, that is appropriated into or out of thefund under section 4 of this chapter. If an appropriation is made intothe fund under section 4 of this chapter, the budget director shallimmediately certify that amount to the treasurer of state. If anappropriation is made out of the fund under section 4 of this chapter,the budget director shall certify to the treasurer of state an amountequal to the part of the appropriation, if any, by which the generalfund general operating budget, for the state fiscal year for which theappropriation is made, exceeds the budget director's estimate of thetotal general fund revenues for that same state fiscal year. The budgetdirector shall make the certification or certifications of money to betransferred out of the fund at the time or times that he determines thegeneral fund general operating budget would exceed the totalestimated state general fund revenues.
    (c) Immediately upon receiving a certification from the budgetdirector under subsection (b), the auditor of state and treasurer ofstate shall make the appropriate transfer into or out of the fund.
    (d) Any amount, which is appropriated out of the fund undersection 4 of this chapter, but which has not been transferred out ofthe fund under this section at the end of the state fiscal year forwhich the appropriation is made, shall revert to the fund.
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-6
Budget reports; statements of actual or estimated transfers
    Sec. 6. (a) In each budget report prepared in a current calendaryear under IC 4-12-1-9, the state budget agency shall include astatement of the actual or estimated transfers made into or out of thefund under this chapter for each state fiscal year included in thereport.
    (b) In each budget report prepared under IC 4-12-1-12(a) or (c),the state budget agency shall include a final estimate of the transfersthat were estimated under subsection (a).
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-7
Transfers; adjustment
    Sec. 7. If the Bureau of Economic Analysis of the United StatesDepartment of Commerce revises the state personal income figure ithas previously reported for the calendar year preceding the currentcalendar year and if the revision is made after the transfer for thestate fiscal year that begins in the current calendar year has initiallybeen determined under section 5 of this chapter, then the budgetdirector shall adjust the transfer to reflect any increase or decreasein the growth rate used in initially determining that transfer.

However, the total adjustments made under this section may notincrease or decrease the initially determined transfer by an amountwhich exceeds one percent (1%) of the total general fund revenueused in determining the transfer. In addition, the last report of statepersonal income that the bureau makes before April 30 of thecalendar year immediately following the current calendar yeardetermines the final adjustment that may be made under this sectionwith respect to that transfer.
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-8
Excess funds; appropriations to state general fund
    Sec. 8. (a) Except as provided in subsection (b), if the balance, atthe end of a state fiscal year, in the fund exceeds seven percent (7%)of the total state general fund revenues for that state fiscal year, theexcess is appropriated from the fund to the state general fund. Theauditor of state and the treasurer of state shall transfer the amount soappropriated from the fund to the state general fund during theimmediately following state fiscal year.
    (b) If an appropriation is made out of the fund under section 4 ofthis chapter for a state fiscal year during which a transfer is to bemade from the fund to the state general fund, the amount of theappropriation made under subsection (a) shall be reduced by theamount of the appropriation made under section 4 of this chapter.However, the amount of the appropriation made under subsection (a)may not be reduced to less than zero (0).
As added by Acts 1982, P.L.22, SEC.1. Amended by P.L.146-2008,SEC.9.

IC 4-10-18-9
General fund revenues; shortfall; appropriation
    Sec. 9. If the total state general fund revenues for a state fiscalyear, in which a transfer into the fund is made, are less than the levelestimated in the budget report prepared in accord withIC 4-12-1-12(a) or (c) and the shortfall cannot be attributed to astatutory change in the tax rate, the tax base, the fee schedules, or therevenue sources from which the general fund revenue estimate wasmade, there is appropriated from the fund to the state general fund anamount that may not exceed the lesser of the following two (2)amounts:
        (1) the amount that was transferred into the fund during thatstate fiscal year; or
        (2) the amount necessary to balance the general fund generaloperating budget for that state fiscal year.
As added by Acts 1982, P.L.22, SEC.1.

IC 4-10-18-10
Loan of money from fund; application; terms; repayment; eligibleentities
    Sec. 10. (a) The state board of finance may lend money from the

fund to entities listed in subsections (e) through (k) for the purposesspecified in those subsections.
    (b) An entity must apply for the loan before May 1, 1989, in aform approved by the state board of finance. As part of theapplication, the entity shall submit a plan for its use of the loanproceeds and for the repayment of the loan. Within sixty (60) daysafter receipt of each application, the board shall meet to consider theapplication and to review its accuracy and completeness and todetermine the need for the loan. The board shall authorize a loan toan entity that makes an application if the board approves its accuracyand completeness and determines that there is a need for the loan andan adequate method of repayment.
    (c) The state board of finance shall determine the terms of eachloan, which must include the following:
        (1) The duration of the loan, which must not exceed twelve (12)years.
        (2) The repayment schedule of the loan, which must providethat no payments are due during the first two (2) years of theloan.
        (3) A variable rate of interest to be determined by the board andadjusted annually. The interest rate must be the greater of:
            (A) five percent (5%); or
            (B) two-thirds (2/3) of the interest rate for fifty-two (52)week United States Treasury bills on the anniversary date ofthe loan, but not to exceed ten percent (10%).
        (4) The amount of the loan or loans, which may not exceed themaximum amounts established for the entity by this section.
        (5) Any other conditions specified by the board.
    (d) An entity may borrow money under this section by adoptionof an ordinance or a resolution and, as set forth in IC 5-1-14, may useany source of revenue to repay a loan under this section. This sectionconstitutes complete authority for the entity to borrow from the fund.If an entity described in subsection (i) fails to make any repaymentsof a loan, the amount payable shall be withheld by the auditor ofstate from any other money payable to the consolidated city. If anyother entity described in this section fails to make any repayments ofa loan, the amount payable shall be withheld by the auditor of statefrom any other money payable to the entity. The amount withheldshall be transferred to the fund to the credit of the entity.
    (e) A loan under this section may be made to a city located in acounty having a population of more than twenty-four thousand(24,000) but less than twenty-five thousand (25,000) for the city'swaterworks facility. The amount of the loan may not exceed onemillion six hundred thousand dollars ($1,600,000).
    (f) A loan under this section may be made to a city the territory ofwhich is included in part within the Lake Michigan corridor (asdefined in IC 14-13-3-2) for a marina development project. As a partof its application under subsection (b), the city must include thefollowing:
        (1) Written approval by the Lake Michigan marina development

commission of the project to be funded by the loan proceeds.
        (2) A written determination by the commission of the amountneeded by the city, for the project and of the amount of themaximum loan amount under this subsection that should be lentto the city.
The maximum amount of loans available for all cities that areeligible for a loan under this subsection is eight million six hundredthousand dollars ($8,600,000).
    (g) A loan under this section may be made to a county having apopulation of more than one hundred seventy thousand (170,000) butless than one hundred eighty thousand (180,000) for use by theairport authority in the county for the construction of runways. Theamount of the loan may not exceed seven million dollars($7,000,000). The county may lend the proceeds of its loan to anairport authority for the public purpose of fostering economic growthin the county.
    (h) A loan under this section may be made to a city having apopulation of more than fifty-nine thousand (59,000) but less thanfifty-nine thousand seven hundred (59,700) for the construction ofparking facilities. The amount of the loan may not exceed threemillion dollars ($3,000,000).
    (i) A loan or loans under this section may be made to aconsolidated city, a local public improvement bond bank, or anyboard, authority, or commission of the consolidated city, to fundeconomic development projects under IC 36-7-15.2-5 or to refundobligations issued to fund economic development projects. Theamount of the loan may not exceed thirty million dollars($30,000,000).
    (j) A loan under this section may be made to a county having apopulation of more than thirteen thousand five hundred (13,500) butless than fourteen thousand (14,000) for extension of airportrunways. The amount of the loan may not exceed three hundredthousand dollars ($300,000).
    (k) A loan under this section may be made to CovingtonCommunity School Corporation to refund the amount due on a taxanticipation warrant loan. The amount of the loan may not exceedtwo million seven hundred thousand dollars ($2,700,000), to be paidback from any source of money that is legally available to the schoolcorporation. Notwithstanding subsection (b), the school corporationmust apply for the loan before June 30, 2010. Notwithstandingsubsection (c), repayment of the loan shall be made in equalinstallments over five (5) years with the first installment due notmore than six (6) months after the date loan proceeds are received bythe school corporation.
    (l) IC 6-1.1-20 does not apply to a loan made by an entity underthis section.
    (m) As used in this section, "entity" means a governmental entityauthorized to obtain a loan under subsections (e) through (k).
As added by P.L.380-1987(ss), SEC.2. Amended by P.L.5-1988,SEC.22; P.L.22-1988, SEC.2; P.L.12-1992, SEC.13; P.L.1-1995,

SEC.33; P.L.170-2002, SEC.10; P.L.182-2009(ss), SEC.53.

IC 4-10-18-11
Limitations on loans
    Sec. 11. (a) A loan under section 10 of this chapter from the fundis payable only from the amount of money remaining in the fundafter the appropriations required by this chapter have been made.
    (b) This section and section 10 of this chapter do not create anobligation of:
        (1) the state; or
        (2) the fund;
to honor any loan applications to the extent that the total amount ofloans approved by the state board of finance exceeds the amount ofmoney available for loans at the time loans are paid.
As added by P.L.380-1987(ss), SEC.3.

IC 4-10-18-12
Appropriation to underground storage tank excess liability fund
    Sec. 12. If the amount of money in the underground petroleumstorage tank excess liability fund established by IC 13-23-7-1 reacheszero (0), ten million dollars ($10,000,000) shall be transferred to theunderground petroleum storage tank excess liability fund from thefund if the:
        (1) underground petroleum storage tank financial assuranceboard recommends that the appropriation should be made; and
        (2) budget committee approves the appropriation.
As added by P.L.13-1990, SEC.2. Amended by P.L.1-1996, SEC.24.

IC 4-10-18-13
Sale of loan; deposit of proceeds
    Sec. 13. (a) The state board of finance constituted by IC 4-9.1-1-1shall promptly sell from the fund, and the board for depositoriescreated by IC 5-13-12-1 shall promptly purchase from the fund, theloan made by the board of finance under section 10(i) of this chapter.
    (b) The loan shall be sold by the board of finance and purchasedby the board for depositories at a purchase price equal to the total of:
        (1) the principal amount of the loan;
        (2) the deferred interest payable thereon; and
        (3) accrued interest to the date of purchase by the board fordepositories.
    (c) Proceeds of the sale of the loan, less the reasonable expensesincurred by the board of finance and the board for depositories inconnection with the sale, shall be deposited by the board of financein a segregated account in the fund (to be known as the economicgrowth initiatives account) for the purpose of providing grants for thepurposes described in section 15 of this chapter.
As added by P.L.28-1993, SEC.2.

IC 4-10-18-14
Investment of proceeds; reversion    Sec. 14. (a) The treasurer of state shall invest the money in theeconomic growth initiatives account not currently needed to furtherthe purposes of the account in the same manner as other public fundsmay be invested. Income from these investments shall be depositedin the fund, but not the account, and any losses from the investmentsshall be charged against the fund, but not the account.
    (b) Expenses of managing the economic growth initiativesaccount shall be paid from money in the account.
    (c) Money in the economic growth initiatives account does notrevert to the fund or the state general fund at the end of a state fiscalyear. However, if the account is abolished, money in the accountshall be deposited in the fund.
    (d) If no grant agreement for a qualified economic growthinitiative for a government building that is to be occupied by anagency of the federal government has been executed and deliveredunder section 16 of this chapter before March 1, 1994:
        (1) the money in the account reverts to the fund on March 1,1994; and
        (2) the auditor of state shall abolish the account on March 1,1994.
As added by P.L.28-1993, SEC.3.

IC 4-10-18-15
Use of proceeds
    Sec. 15. (a) Money in the economic growth initiatives accountmay be used only for grants to or for the benefit of politicalsubdivisions for costs of qualified economic growth initiatives.
    (b) Making grants for qualified economic growth initiatives underthis chapter will serve a public purpose by creating and retaining jobsand promoting economic growth and development within Indiana andwill serve essential governmental functions and public activitieswithin Indiana.
As added by P.L.28-1993, SEC.4.

IC 4-10-18-16
Grants
    Sec. 16. (a) Grants to or on behalf of political subdivisions forqualified economic growth initiatives shall be made by the Indianaeconomic development corporation established by IC 5-28-3-1.
    (b) Each grant shall be made under a grant agreement by andbetween:
        (1) the Indiana economic development corporation; and
        (2) the political subdivision proposing the economic growthinitiative or the person (as defined in IC 36-1-2-12) acting onbehalf of the political subdivision.
    (c) Each grant agreement shall describe in detail:
        (1) the qualified economic growth initiative;
        (2) the financing plan by the political subdivision proposing theeconomic growth initiative or by the person acting on behalf ofthe political subdivision; and        (3) the estimated cost of the economic growth initiative and allsources of money for the initiative.
    (d) The Indiana economic development corporation may notexecute and deliver a grant agreement under this section, and nomoney may be disbursed from the economic growth initiativesaccount, until the grant agreement has been:
        (1) reviewed by the budget committee established byIC 4-12-1-3; and
        (2) approved by the budget agency established by IC 4-12-1-3.
    (e) In addition to the requirements of subsection (d), no moneymay be disbursed for a grant from the economic growth initiativesaccount without an appropriation made by the general assembly forthat purpose, unless the grant is for a qualified economic growthinitiative for a government building that is to be occupied by anagency of the federal government.
    (f) Not more than twenty-five percent (25%) of any grant may beused for training or retraining employees whose jobs will be createdor retained as a result of the economic growth initiative.
As added by P.L.28-1993, SEC.5. Amended by P.L.4-2005, SEC.6.