Note: This version of section effective until 1-1-2025. See also following version of this section, effective 1-1-2025.

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Terms Used In Indiana Code 20-40-2-6

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • education fund transfer target percentage: refers to the threshold maximum education fund transfer percentage set forth in section 6 of this chapter. See Indiana Code 20-40-2-0.3
  • excessive education fund transfer list: refers to the list required by section 6 of this chapter. See Indiana Code 20-40-2-0.5
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • fund: refers to a school corporation's or, if applicable, a charter school's education fund established under section 2 of this chapter. See Indiana Code 20-40-2-1
  • Month: means a calendar month, unless otherwise expressed. See Indiana Code 1-1-4-5
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     Sec. 6. (a) Each school corporation and, if applicable, charter school, shall make every reasonable effort to transfer not more than fifteen percent (15%) of the total revenue deposited in the school corporation’s or, if applicable, charter school’s, education fund from the school corporation’s or, if applicable, charter school’s, education fund to the school corporation’s or, if applicable, charter school’s, operations fund during a calendar year.

     (b) Only after the transfer is authorized by the governing body in a public meeting with public notice, money in the education fund may be transferred to the operations fund to cover expenditures that are not allocated to student instruction and learning under IC 20-42.5. The amount transferred from the education fund to the operations fund shall be reported by the school corporation or, if applicable, charter school, to the department. The transfers made during the:

(1) first six (6) months of each state fiscal year shall be reported before January 31 of the following year; and

(2) last six (6) months of each state fiscal year shall be reported before July 31 of that year.

     (c) The report must include information as required by the department and in the form required by the department.

     (d) The department must post the report submitted under subsection (b) on the department’s website.

     (e) Beginning in 2020, the department shall track for each school corporation or, if applicable, charter school, transfers from the school corporation’s or, if applicable, charter school’s, education fund to its operations fund for the preceding six (6) month period. Beginning in 2021, before March 1 of each year, the department shall compile an excessive education fund transfer list comprised of all school corporations or, if applicable, charter schools, that transferred more than fifteen percent (15%) of the total revenue deposited in the school corporation’s or, if applicable, charter school’s, education fund from the school corporation’s or, if applicable, charter school’s, education fund to the school corporation’s or, if applicable, charter school’s, operations fund during the immediately preceding calendar year. A school corporation or, if applicable, charter school, that is not included on the excessive education fund transfer list is considered to have met the education fund transfer target percentage for the immediately preceding calendar year.

As added by P.L.244-2017, SEC.71. Amended by P.L.161-2019, SEC.5; P.L.139-2022, SEC.19; P.L.201-2023, SEC.183.

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