CHAPTER 2. ADMINISTRATION OF VETERANS MEMORIAL SCHOOL CONSTRUCTION FUND; SCHOOL DISASTER LOAN FUND
IC 20-49-2
Chapter 2. Administration of Veterans Memorial School
Construction Fund; School Disaster Loan Fund
IC 20-49-2-1
"Advancement"
Sec. 1. As used in this chapter, "advancement" refers to an
advance 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 is
established. 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 for
administering this chapter, provide office space and employees to
enable the state board to perform the duties required under this
chapter.
(c) The state board may adopt rules under IC 4-22-2 necessary for
the proper administration of the veterans memorial school
construction 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 the
auditor of state to periodically make an advancement from the state
general fund for the construction, remodeling, or repair of school
buildings 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 this
chapter during any fiscal year that in total exceed the sum of:
(1) the balance remaining in the veterans memorial school
construction fund at the end of the preceding fiscal year; and
(2) all accruals and transfers to the veterans memorial school
construction 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 advancement
under this chapter under the following circumstances:
(1) An advancement may not be made to any organized joint
school district or to any school corporation within any
organized joint school district when the advancement is to be
used in connection with the enlargement or construction of a
joint school.
(2) An advancement may not be made to a school corporation
whose 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 amount
allowable under the Constitution of the State of Indiana and
Indiana law for the construction of school facilities; and
(B) more than thirty-five percent (35%) of the total cost of
the facilities has been to build or enlarge a gymnasium, an
auditorium, 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 comply
with 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, or
repairing 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 corporation
under section 10 of this chapter may not exceed two hundred fifty
thousand dollars ($250,000). However, this dollar limitation is
waived if:
(1) the school corporation has an assessed valuation per ADA
of less than eight thousand four hundred dollars ($8,400); and
(2) the school corporation's debt service fund tax rate would
exceed one dollar ($1) for each one hundred dollars ($100) of
assessed 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 to
school corporations under this chapter only when the following
conditions exist:
(1) The school buildings and classrooms of any school
corporation are not adequate for the proper education of the
students in that public school or school corporation, and the
school corporation is unable to finance the construction,
remodeling, or repair of the necessary classrooms under
existing debt and tax limitations without undue financial
hardship.
(2) The school corporation has issued its bonds to construct,
remodel, or repair schools and school buildings in ninety
percent (90%) of the maximum amount allowable under the
Constitution of the State of Indiana and Indiana law.
(3) The school corporation does not have funds available for the
construction, remodeling, or repair of school buildings and
classrooms sufficient to meet the requirements for the proper
education of the school corporation's students.
(4) The school corporation has established and maintained a
property tax levy in the amount of at least sixteen and
sixty-seven hundredths cents ($0.1667) on each one hundred
dollars ($100) of taxable property within the school corporation
for school building purposes continuously for three (3) years
before the time when the school corporation makes an
application 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 school
corporation that has suffered loss by fire, flood, windstorm, or other
disaster that makes all or part of the school building or buildings
unfit for school purposes as described in IC 20-26-7-29 through
IC 20-26-7-34.
(b) A loan made under this section may not exceed three million
dollars ($3,000,000). The school corporation shall repay the loan
within 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 disaster
loan fund. The money remaining in the school disaster loan fund at
the 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 fund
only to make disaster loans to school corporations under this section.
(d) Sections 13, 14, and 15 of this chapter do not apply to loans
made 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 an
advancement under this chapter shall submit to the state board a
verified application stating:
(1) the existing condition concerning the need for money to be
used to construct, remodel, or repair a school building in the
school 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 the
applicant school corporation a school building index that is the ratio
of the school building need, in terms of money, to the school
corporation's tax ability, in terms of money.
(b) For purposes of this section, the school building need, in terms
of money, of a school corporation is the amount determined under
STEP FOUR of the following formula:
STEP ONE: Add the ADA of students in grades 1 through 12
of the school corporation during the current school year in
which application for an advancement is made and twice the
ADA increase of the school corporation for the preceding three
(3) years. However, the state board may make adjustments to
reflect the effect of changes of boundary lines, loss of transfer
students, or loss of resident students to private, parochial, or
cooperative 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 the
estimated enrollment increase.
STEP THREE: Subtract from the STEP TWO amount the
number of classrooms that:
(A) are owned, under a lease-rental arrangement, or under
construction in the school corporation; and
(B) were constructed for and normally used for classroom
purposes at the time of making application for an
advancement.
However, there shall not be subtracted classrooms in a building
or buildings found to be inadequate for the proper education of
students under standards and procedures prescribed by the state
board or that have been condemned under IC 20-26-7-29
through IC 20-26-7-34 and that are to be replaced by funds
applied for.
STEP FOUR: Multiply the STEP THREE amount by twenty
thousand dollars ($20,000).
(c) For purposes of this section, the school corporation's tax
ability, in terms of money, is the amount determined under STEP
TWO of the following formula:
STEP ONE: Determine six and one-half percent (6 1/2%) of the
adjusted value of taxable property in a school corporation as
determined under IC 36-1-15-4 for state and county taxes
immediately preceding the date of application.
STEP TWO: Subtract from the STEP ONE amount the sum of
the following:
(A) The principal amount of any outstanding general
obligation bonds of the school corporation.
(B) The principal amount of outstanding obligations of any
corporation or holding company that has entered into a
lease-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 purposes
of 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 building
index must be considered first for advancements. The advancements
must be made in descending order of need as shown by the school
building index. The state board, after giving consideration to the:
(1) relative order of the various applicant school corporations
with regard to the school building index;
(2) matters and facts that are required to be considered under
this chapter; and
(3) intent and purposes of this chapter;
shall make an advancement to the various school corporations for the
purpose of construction, remodeling, or repairing in the amounts that
are found by the state board to be necessary to enable the school
corporations to provide for the classrooms and school buildings
necessary and required to place the educational facilities of the
school corporations on as nearly a uniform and relatively adequate
basis 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 an
obligation of the school corporation within the meaning of the
limitation against indebtedness under the Constitution of the State of
Indiana. This chapter does not relieve the governing body of a school
corporation of any obligation under Indiana law to qualify the school
corporation for state tuition support. The school corporation must
perform all the acts necessary to obtain state tuition support
payments.
(b) A school corporation receiving an advancement under this
chapter shall agree to have the total amount of the money advanced
plus one percent (1%) of the outstanding balance deducted from the
distribution 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 been
deducted.
(c) The state board shall reduce the amount of each distribution
of state tuition support to any school corporation that has received an
advancement under this chapter in an amount to be agreed upon
between the state board and the school corporation. The amount must
include one percent (1%) on the balance of the advancement.
However, if a school corporation:
(1) has received an advancement or advancements to replace a
building or buildings under this chapter; and
(2) has not abandoned the building or buildings for classroom
purposes upon completion of the classrooms for which the
application for funds has been made;
the state board may amend the amount of the deductions. The
amended deduction may include all state tuition support payable to
the 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 renegotiate
the agreement for repayment. The new agreement may provide any
period of repayment by the receiving school corporation as long as
the period does not exceed twenty (20) years from the date of the
original 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 under
this chapter may annually levy a tax in the debt service fund to
replace the amount deducted in the current year from the distribution
of state tuition support under this chapter. The amount received from
the tax shall be transferred from the debt service fund to the general
fund.
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 June
30 of each year transfer from the veterans memorial school
construction fund to the state general fund the total amount of money
advanced by the state board from the state general fund to school
corporations under this chapter.
(b) The auditor of state shall at the time of a distribution of state
tuition support transfer to the veterans memorial school construction
fund an amount equal to the amount withheld from the distribution
to school corporations that have received advancements under this
chapter.
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 this
chapter shall provide a suitable plaque of a permanent nature
commemorating the veterans who served in the armed forces of the
United States. The plaque must be in a form recommended by the
state board.
As added by P.L.2-2006, SEC.172.