Bill Text: IN HB1397 | 2013 | Regular Session | Introduced
Bill Title: Student centered school funding.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Education [HB1397 Detail]
Download: Indiana-2013-HB1397-Introduced.html
Citations Affected: IC 6-1.1-21.4-0.5; IC 20-18-2; IC 20-20-40;
IC 20-24; IC 20-26-5; IC 20-31; IC 20-33-8.5-5; IC 20-39; IC 20-43;
IC 20-49; IC 20-51-4.
Synopsis: Student centered school funding. Establishes a school
funding formula for the state fiscal year beginning July 1, 2014, and
ending June 30, 2015. Provides that state tuition support is payable to
both public and private schools based on the ADM count of each
school. Establishes the school funding task force to assist the general
assembly in developing funding categories and funding weights to use
in allocating state tuition support among schools based on the relative
educational cost of educating each student. Reduces the amount of
choice scholarship payable to a student by the amount of state tuition
support provided to the private school that the student attends. Provides
for payment of state tuition support at the beginning of a school year
based on an estimate of the number of students that are likely to be
included in the fall ADM count conducted in that school year. Provides
a procedure for reconciling overpayments and underpayments resulting
from the use of estimates. Eliminates start up grants and loans to
charter schools. Requires state and federal funds, to the extent
permitted by law, to be distributed and used on a per student basis.
Provides for budgeting, accounting, and management of educational
expenditures from state and federal funds on a school by school basis.
Provides that the state superintendent of public instruction must
exercise supervision of school funds and revenues under the direction
of the state board of education. Defines the terms "elementary school"
and "high school" to include combined schools such as a middle
school. Makes an appropriation for state tuition support distributions.
Effective: June 30, 2013; July 1, 2013.
January 22, 2013, read first time and referred to Committee on Education.
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
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A BILL FOR AN ACT to amend the Indiana Code concerning
education and to make an appropriation.
11, or 12. The term applies to grade 9, 10, 11, or 12, regardless of
whether some or all of the grades are combined in the same
building or in the same administrative unit with some or all of the
grades of an elementary school, such as a middle school.
Chapter 40. Student Centered Grant Distributions
Sec. 1. This chapter applies to grants and other distributions of state and federal funds for the education of students in elementary school or high school, or both, made after June 30, 2014.
Sec. 2. In addition to any other requirement specified by law for the distribution of educational funds, to the extent permitted by federal and state law, the department under the direction of the state board shall distribute educational funds to entities in proportion to the students served by the entity and shall require that the entities make expenditures of the funds for each student covered by the grants and distributions in proportion to the amount of funds received for that student.
(1) The number of students enrolled in the charter school.
(2) The name and address of each student.
(3) The name of the school corporation in which the student has legal settlement.
(4) The name of the school corporation, if any, that the student attended during the immediately preceding school year.
(5) The grade level in which the student will enroll in the charter school.
The department shall verify the accuracy of the information reported.
(b) This subsection applies after December 31 of the calendar year in which a charter school begins its initial operation. The department shall distribute to the organizer the state tuition support distribution. The department shall make a distribution under this subsection at the same time and in the same manner as the department makes a distribution of state tuition support under IC 20-43-2 to other school corporations.
(c) After December 31, 2013, IC 20-43-14-5 and not this section applies to advance funding of a charter school that begins its initial
operation after June 30, 2014.
(d) This section expires July 1, 2014.
(1) virtual distance learning;
(2) online technologies; or
(3) computer based instruction.
(1) the product of:
(A) the number of students included in the virtual charter school's ADM; multiplied by
(B) eighty-seven and five-tenths percent (87.5%) of the school's foundation amount determined under IC 20-43-5-4 (expires July 1, 2014); plus
(2) the total of any special education grants under IC 20-43-7 (expires July 1, 2014) to which the virtual charter school is entitled.
After December 31, 2011, and before July 1, 2014, a virtual charter school is entitled to receive special education grants under IC 20-43-7 (expires July 1, 2014) calculated in the same manner as special education grants are calculated for other school corporations. After June 30, 2014, a virtual charter school is entitled to receive state tuition support in the amount determined under IC 20-43-17-4.
1 of each year submit an annual report to the budget committee
concerning the program under this section.
(f) This subsection does not apply to students who were enrolled in
a virtual charter school during the 2010-2011 school year. (e) Each
school year, at least sixty percent (60%) of the students who are
enrolled in virtual charter schools under this section for the first time
must have been included in the state's ADM count for the previous
school year.
(1) analysis of the educational expenditures from state and federal revenues that are actually expended on each eligible pupil (as defined in IC 20-43-1-11) enrolled in that charter school; and
(2) comparison of eligible pupil expenditures with the eligible pupil expenditures of other schools (as defined in IC 20-43-1-22.7).
The cost accounting system must be capable of matching the expenditures to the source of revenue for those expenditures and identifying the funding categories (as defined in IC 20-43-1-14.7) in which each student is counted for state tuition support purposes.
(b) A charter school shall report revenues and expenditures for students to the state board on the schedule determined by the state board.
(b) The governing body of a school corporation shall establish a plan to delegate final authority and administrative control over:
(1) budgets and expenditure decisions for a public school; and
(2) administrative activities affecting the operation of the public school or the performance of students enrolled in the public school;
to the principal of the public school, as necessary or appropriate, to give the principal the authority to use state and federal funds received for or attributable to the students enrolled in the public school in the most effective manner, as determined by the principal, to advance the academic achievement of the students enrolled in the public school.
(c) The following are not governed by a plan under this section:
(1) Location of public schools.
(2) Capital expenditures related to public schools, other than leases or purchases of equipment for a public school.
(3) Financing of any expenditure, including the repayment of debt.
(4) Accounting services.
(5) Hiring, firing, demotion, assignment, reassignment, evaluation, or disciplining of a public school principal.
(d) Authority for decisions related to goods and services payable with property taxes or other funds not described in subsection (b) may be delegated to a principal in a plan under this section if control of the related funds is also delegated to the principal.
(e) The initial plan under this section must be adopted by resolution before January 1, 2014. The governing board may adopt revisions to the plan, as necessary or appropriate. Any delegation in a plan adopted under this chapter is effective upon adoption.
(f) The governing body shall file a copy of a plan established or revised under this section with the state board. When approved by the state board, any law or rule that requires the governing body or the superintendent of the school corporation to take an action covered by the plan is waived to the extent necessary to delegate the functions described in this section to the principal of a public school and a school principal may exercise the delegated powers to the same extent and in the same manner as the governing body.
(b) Subject to any restrictions established in a plan adopted by the governing body of a school corporation and subject to approval by the state board under section 34 of this chapter the following apply to the procurement of services and goods for a public school:
(1) A principal of a public school may procure services and goods necessary for the public school managed by the principal in the same manner and to the same extent as a school corporation.
(2) Service contracts for the procurement of services or goods from:
(A) a centralized unit maintained by a school corporation; or
(B) an educational service center;
are exempt from bidding or other procurement requirements set by law.
(b) A school corporation shall expend on students enrolled in a public school an amount from federal funds and state funds received by the school corporation (excluding the five percent (5%) allowance permitted under IC 20-43-14-6) that is at least equal to the amount attributable to the number of students included in the public school's ADM count under IC 20-43.
(c) The school corporation shall allocate for expenditure by and for a public school an amount that is at least equal to the sum of the amounts required to be expended under subsection (b) for the students counted in the ADM of the public school (excluding the five percent (5%) allowance permitted under IC 20-43-14-6).
(d) Each calendar year, a school corporation and a public school within a school corporation shall expend the state tuition support received by the school corporation or public school that is attributable to parentally placed nonpublic school students with disabilities for the provision of special education and related services to the parentally placed nonpublic school students with disabilities. In determining compliance with this subsection, a school corporation or public school may include state special education grant expenditures on the following:
(1) Activities and services for which the school corporation may expend federal grants under Part B of the federal Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).
(2) Child find (as defined in IC 20-43-1-8.5) activities, including the cost of initial educational evaluations and reevaluations.
A school corporation and a public school shall maintain sufficient and accurate records to demonstrate compliance with this subsection. The state board shall adopt rules to implement this subsection, including, but not limited to, annual reporting requirements, monitoring, and consequences for noncompliance. The consequences may include requiring expenditure of additional state funds in a subsequent year if the school fails to expend the requisite amount in a prior year that occurs after June 30, 2011.
(b) A student who attends a turnaround academy or another school subject to intervention under this chapter remains, under
(c) The state board, based upon recommendations received from the department, shall determine the amounts of state tuition support and federal funds that are necessary to fund options for improvement implemented by the state board under this chapter with respect to each turnaround academy.
(d) The department shall do the following:
(1) Withhold from state tuition support and federal funds otherwise to be distributed to the school corporation of the school operated as a turnaround academy under this chapter the amount determined under subsection (c) for the affected students. The amount withheld under this subdivision may not exceed the total per pupil funding for the affected students.
(2) Enter into any contracts necessary to implement the options for improvement implemented for the school by the state board, including contracts with a special management team assigned under IC 20-31-9-4 to operate the school as a turnaround academy.
(3) Make payments under the contracts entered into under subdivision (2) with funds withheld from the school corporation under subdivision (1).
Chapter 12. Internal Review of School Performance
Sec. 1. This chapter applies after June 30, 2014.
Sec. 2. As used in this chapter, "school" has the meaning set forth in IC 20-43-1-22.7.
Sec. 3. The primary purpose of each school is to facilitate the academic achievement and growth of enrolled students. Every school must provide proof of academic growth per child and is required to take the state exams required under this title.
Sec. 4. Each school must ensure that the school operates in an environment that empowers parents to be involved in their children's education.
Sec. 5. Each teacher, in consultation with students' parents or legal guardians and students when age-appropriate, shall establish academic growth goals for the student at the outset of each academic year and shall regularly measure students' academic growth throughout the school year. In measuring each student's progress toward achieving those goals throughout the school year, the teacher shall use a variety of assessment tools selected by the principal and faculty of the accredited school.
Sec. 6. The principal of each school shall ensure that each school teacher and other employee engaged in an educational purpose at the school is held accountable for student achievement through an employee evaluation process. At a minimum, the principal shall annually evaluate the degree to which the employee meets the requirements specified in section 5 of this chapter.
Sec. 7. At least once each school year, the:
(1) school corporation superintendent of a school corporation maintaining a school; or
(2) the chief administrative officer for the entity maintaining a school, if the school is not maintained by a school corporation and the chief administrative officer is not the principal of the school; or
the superintendent's or officer's designee shall evaluate the performance of each school principal. The review must ensure that the principal is held accountable for the overall level of academic achievement at the school. At a minimum, the principals' evaluations shall assess their performance related to the requirements under section 6 of this chapter.
(1) for expenditures incurred before July 1, 2014, more than the transition to foundation amount (as determined under IC 20-43-5-6) for each student referred under the agreement; and
(2) for expenditures incurred after June 30, 2014, more than the state tuition support received by the school corporation for a student referred under the agreement.
(1) analysis of the educational expenditures from state and federal revenues that are actually expended on each eligible pupil (as defined in IC 20-43-1-11) that receives services from the school corporation or a joint or cooperative school administered by the school corporation; and
(2) comparison of eligible pupil expenditures with the eligible pupil expenditures of other schools (as defined in IC 20-43-1-22.7) and programs.
The cost accounting system must be capable of matching the expenditures to the source of revenue for those expenditures and identifying the funding categories (as defined in IC 20-43-1-14.7) in which each student is counted for state tuition support purposes. In addition, the cost accounting system must permit the analysis of the expenditures made on each public school managed by the school corporation.
(b) A school corporation shall report revenues and expenditures for students to the state board on the schedule determined by the state board.
(b) The state superintendent may cause to be instituted, in the name of the state of Indiana, for the use of the proper fund or revenue, all suits necessary for the recovery of any part of the funds or revenues. The prosecuting attorney shall prosecute all the suits at the insistence
of the state superintendent and without charge against the funds or
revenue.
Chapter 5. Oversight and Administration of Public and Nonpublic School Budgets
Sec. 1. This chapter applies to school years beginning after June 30, 2014.
Sec. 2. As used in this chapter, "school" has the meaning set forth in IC 20-43-1-22.7.
Sec. 3. Each school shall prepare a separate budget on a school year basis. Subject to this chapter, the budget shall be developed and reviewed in the manner and according to the schedule specified by the state board. The state board shall require that the budget of a public school maintained by a school corporation be reviewed by the governing body of the school corporation. The department of local government finance is not required to review or approve the budget.
Sec. 4. In developing a school budget, a school shall use a process that involves school employees and parents of children enrolled at the school. The principal, employees, and parents shall comply with budgeting and accounting practices and standards as set forth in state law as they apply to the individual school.
Sec. 5. Any remaining funds in a school's account at the end of a budget year remains in the school's account and does not revert to the school corporation or other administrative entity. Remaining funds belong to the individual school to be used at the discretion of the school principal. Individual schools shall adopt policies concerning the role the public school's board, employees, and parents of children enrolled in the school will play in advising the principal about the use of the remaining funds.
Sec. 6. Any deficit remaining in a school's budget at the end of a budget year is the responsibility of the school. Individual schools shall adopt policies concerning the role the school's principal, board, employees, and parents of children enrolled in the school will play in advising the principal about resolving these deficits.
Sec. 7. The principal of each school shall file a copy of the school budget with the governing body of the school corporation (if the school is a public school maintained by the school corporation), the department, and the state board of accounts. In addition, a charter school shall submit the budget to the charter school sponsor. The
budget shall be filed at the time and in the form specified by the
department.
Sec. 8. (a) This section applies only to a school corporation.
(b) A school corporation shall maintain the budget record for
each public school maintained by the school corporation as part of
the centralized services provided to each public school. School
budgets and related records are public records and must be posted
on the Internet web site for the school or, in the case of a public
school, on the Internet web site for the school corporation
maintaining the public school. A school corporation shall pay the
costs of maintaining and validating financial records for public
schools maintained by the school corporation without a service
charge to the public school that exceeds the five percent (5%) of
state tuition support that the school corporation is permitted to
reserve under IC 20-43-14-6.
July 1, 2014.
(1) Is located in Indiana.
(2) Voluntarily agrees to enroll an eligible individual.
(3) Is accredited by either the state board or a national or regional accreditation agency that is recognized by the state board.
(4) Administers the Indiana statewide testing for educational progress (ISTEP) program under IC 20-32-5.
(5) Is not a charter school or a school corporation.
(6) Submits to the department data required for a category designation under IC 20-31-8-3 and a category designation under IC 20-43-16.
(7) Maintains a cost accounting system approved by the state board of accounts that permits:
(A) analysis of the educational expenditures from state and federal revenues that are actually expended on each eligible pupil enrolled in that school; and
(B) comparison of eligible pupil expenditures with the eligible pupil expenditures of other schools.
The cost accounting system must be capable of matching the expenditures to the source of revenue for those expenditures and identify the funding category in which each student is counted for state tuition support purposes. The eligible school must report revenues and expenditures for students to the state board on the schedule determined by the state board.
(8) Provides the department with a consent in writing to participate in the state tuition support distribution program under this article for one (1) or more state fiscal years and has not withdrawn the consent for a subsequent state fiscal year.
in a school year under:
(1) IC 20-43-4-3 (expires July 1, 2014), as finally adjusted under
IC 20-43-4-2 (expires July 1, 2014); or
(2) IC 20-43-15-4, as subsequently adjusted under
IC 20-43-15.
(1) IC 20-43-4-6 (expires July 1, 2014); or
(2) IC 20-43-15-5 or IC 20-43-15-6.
(1) An elementary school or a high school maintained by a school corporation.
(2) A charter school.
(3) An elementary school or a high school maintained by a state educational institution under IC 20-24.5 or another law.
(4) The Indiana School for the Blind and Visually Impaired.
(5) The Indiana School for the Deaf.
(6) An elementary school or a high school maintained by a juvenile court or the department of correction.
(7) A joint or cooperative school that:
(A) is established by two (2) or more school corporations;
(B) serves eligible pupils; and
(C) operates as a separate administrative unit from the school corporation primarily responsible for the administration of the joint or cooperative school.
(8) An eligible school.
(1) IC 20-43-4-3 (expires July 1, 2014), as subsequently adjusted under IC 20-43-4-2 (expires July 1, 2014); or
(2) IC 20-43-15-4, as subsequently adjusted under
IC 20-43-15.
(1) before July 1, 2014, to:
(2) after June 30, 2014, for eligible pupils enrolled in a school, as determined under IC 20-43-17.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 7. This chapter expires July 1, 2014.
(1) the total number of eligible pupils who are enrolled in each school maintained in the school corporation on the count date; and
(2) the number of eligible pupils, by school, who qualify for inclusion in one (1) or more funding categories established under IC 20-43-16;
as part of the spring count in calendar year 2014. If the general assembly has not enacted funding weights and funding categories before the spring count is conducted, the funding categories recommended by the task force shall be used.
2014.
Chapter 13. Computations
Sec. 1. If a computation under this article results in a fraction and a rounding rule is not specified, the fraction shall be rounded as follows:
(1) All calculations related to the complexity index shall be computed by rounding to the nearest ten thousandth (0.0001).
(2) All tuition support distributions shall be computed by rounding the levy or tuition support distribution to the nearest dollar ($1) amount.
(3) The fraction calculated in IC 20-43-2-4 shall be computed by rounding to the nearest one millionth (0.000001).
(4) If a calculation is not covered by subdivision (1), (2), or (3), the result of the calculation shall be rounded to the nearest one hundredth (0.01).
Chapter 14. Distributions
Sec. 1. This chapter applies after June 30, 2014.
Sec. 2. The department shall distribute the amount appropriated by the general assembly for distribution as state tuition support in accordance with this article. If the appropriations for distribution as state tuition support are more than required under this article, any excess reverts to the state general fund. The appropriations for state tuition support shall be made each state fiscal year under a schedule set by the budget agency and approved by the governor. However, the schedule must provide:
(1) for at least twelve (12) payments;
(2) that one (1) payment shall be made at least every forty (40) days; and
(3) the total of the payments in each state fiscal year must equal the amount required under this article.
Sec. 3. If the total amount of state tuition support to be distributed for a particular state fiscal year exceeds the amount appropriated for state tuition support distributions for the state fiscal year, the amount to be distributed for state tuition support under this article to each school and school corporation during each of the last six (6) months of the state fiscal year shall be
proportionately reduced so that the total reductions equal the
amount of the excess.
Sec. 4. The amount of the reduction for a particular school
under section 3 of this chapter is equal to the total amount of the
excess determined under section 3 of this chapter multiplied by a
fraction. The numerator of the fraction is the amount of the
distribution for state tuition support that the school would have
received if a reduction were not made under this section. The
denominator of the fraction is the total amount that would be
distributed for state tuition support to all schools if a reduction
were not made under this section.
Sec. 5. (a) A school, including a charter school that initially
begins operation in a state fiscal year, shall submit to the
department an estimated count of eligible pupils in each funding
category in the form and on the schedule specified by the state
board. The count must estimate as accurately as possible the
anticipated number of eligible pupils in each funding category who
are likely to be included in the school's fall count of ADM for the
state fiscal year beginning in the calendar year in which the
estimate is provided. The report containing the estimate must be in
the form and contain the information required by the state board.
The state board may require that the estimate described in this
subsection be provided before the beginning of a state fiscal year
and be supplemented or revised by a school as determined by the
state board.
(b) Using the estimates submitted by the school and any other
information available to the state board, the state board shall
estimate the number of eligible pupils in each funding category
who are likely to be included in the fall ADM count of the school in
the school year beginning in the calendar year in which the
estimate is provided. The state board may adjust the estimate
provided by a school as the state board determines necessary.
(c) Distributions to a school in the first six (6) months of a state
fiscal year shall be based on the estimate provided under this
section, as adjusted under this section and IC 20-43-15.
(d) After the fall count of ADM, the state board shall adjust the
estimated count of ADM under this section to reflect the actual
count of eligible pupils determined for each funding category in the
fall count. If the state board adjusts the fall count under
IC 20-43-15-4, the state board shall make the same adjustment to
the estimated count.
Sec. 6. (a) Except as provided by this section, state tuition
support attributable to an eligible pupil shall be distributed
directly to the school where the eligible pupil is enrolled.
(b) A school corporation may adopt a resolution directing that
not more than five percent (5%) of the state tuition support
attributable to eligible pupils enrolled in the school corporation be
distributed to the business manager of the school corporation for
general administrative purposes. The school corporation must
certify a copy of a resolution adopted under this subsection to the
department before the department is obligated to make a
distribution permitted under this subsection to the school
corporation.
(c) If a school corporation receives a distribution under
subsection (b), the principal of a school maintained by the school
corporation may enter into an agreement with the school
corporation to hold and disburse some or all of the funds that
would otherwise be directly distributed to the school. The
agreement must prohibit any additional charge to the school for
the services provided under this subsection. The agreement may
not permit reallocation of funds attributable to the eligible pupils
in the school to any other school. The principal must certify a copy
of an agreement entered into under this subsection to the
department before the department is obligated to make a
distribution permitted under this subsection to the school
corporation. Funds received by a school corporation for a school
under this subsection must be segregated and accounted for
separately from other funds held by the school corporation.
Chapter 15. Determination of Pupil Enrollment
Sec. 1. This chapter applies after June 30, 2014.
Sec. 2. An individual is an eligible pupil in a school if the individual:
(1) is a pupil attending an elementary school or a high school course of study in the school; and
(2) would have legal settlement in an Indiana school corporation, regardless of whether the individual is attending an elementary school or a high school course of study in a public school maintained by that school corporation or in another school.
Sec. 3. A school's ADM is the number of eligible pupils enrolled in the school on a day to be fixed annually by the state board and
as subsequently adjusted not later than January 30 under the rules
adopted by the state board.
Sec. 4. (a) Subject to subsection (b), the state board shall make
an ADM count of the eligible pupils enrolled in each school two (2)
times each school year, with one (1) count date occurring in each
of the following periods:
(1) The fall count of ADM shall be made on a day during
September fixed by the state board.
(2) The spring count of ADM shall be made on a day during
February fixed by the state board.
(b) However, if extreme patterns of:
(1) student in-migration;
(2) illness;
(3) natural disaster; or
(4) other unusual conditions in a particular school
corporation's enrollment;
on either a count day fixed by the state board or the subsequent
adjustment date cause the enrollment to be unrepresentative of the
school's enrollment, the state board may designate another day for
determining enrollment.
Sec. 5. In determining ADM for a school, each eligible pupil
enrolled in more than one (1) school is to be counted on a full-time
equivalency basis if the pupil receives instructional services from
each school. For purposes of this section, full-time equivalency is
calculated as follows:
STEP ONE: Determine the result of:
(A) the number of days instructional services will be
provided to the pupil, not to exceed one hundred eighty
(180); divided by
(B) one hundred eighty (180).
STEP TWO: Determine the result of:
(A) the pupil's school instructional time (as defined in
IC 20-30-2-1); divided by
(B) the actual school regular instructional day (as defined
in IC 20-30-2-2).
STEP THREE: Determine the result of:
(A) the STEP ONE result; multiplied by
(B) the STEP TWO result.
STEP FOUR: Determine the lesser of one (1) or the result of:
(A) the STEP THREE result; multiplied by
(B) one and five hundredths (1.05).
Sec. 6. Subject to section 7 of this chapter, in determining ADM,
an eligible pupil who is enrolled in only one (1) school but attends
a course of study that regularly meets for less than a full student
instructional day (as determined under IC 20-30-2-2(a)) shall be
counted on a full-time equivalency basis. For purposes of this
section, full-time equivalency is calculated as follows:
STEP ONE: Determine the result of:
(A) the number of days instructional services will be
provided to the eligible pupil, not to exceed one hundred
eighty (180); divided by
(B) one hundred eighty (180).
STEP TWO: Determine the result of:
(A) the pupil's school instructional time (as defined in
IC 20-30-2-1); divided by
(B) the actual school regular instructional day (as defined
in IC 20-30-2-2(a)).
STEP THREE: Determine the result of:
(A) the STEP ONE result; multiplied by
(B) the STEP TWO result.
Sec. 7. For purposes of computing ADM, a student who
participates in:
(1) a postsecondary enrollment program under IC 21-43-4 is
considered an eligible pupil enrolled in the school where the
student is enrolled for the purposes of earning the student's
high school degree;
(2) a double up for college program under IC 21-43-5 is
considered an eligible pupil enrolled in the school where the
student is enrolled for the purposes of earning the student's
high school degree;
(3) a high school fast track to college program under
IC 21-43-6 shall be counted in the ADM of the school where
the student is enrolled for the purposes of earning the
student's high school degree; or
(4) a high school fast track to college program under
IC 21-43-7 shall be counted in the ADM of the school where
the student is enrolled for the purposes of earning the
student's high school degree.
Sec. 8. An ADM count conducted under this chapter and an
estimated ADM count conducted under IC 20-43-14-5 must
identify the number of eligible pupils in each funding category
established under IC 20-43-16.
JULY 1, 2013]:
Chapter 16. School Funding Task Force; Funding Weights;
Funding Categories
Sec. 1. This chapter applies after June 30, 2014.
Sec. 2. (a) There is established the school funding task force. The
task force consists of the following voting members:
(1) The superintendent of public instruction or the designee of
the superintendent of public instruction.
(2) The chairperson of the state board of education or another
member of the state board of education designated by the
chairperson of the state board of education to serve on the
task force.
(3) Five (5) members appointed by the governor.
Not more than three (3) of the members appointed by the governor
may be members of the same political party. At least one (1)
member appointed by the governor must be a parent of a student
enrolled in a school.
(b) In addition, the task force has the following nonvoting
members:
(1) Two (2) members appointed by the speaker of the house of
representatives. Not more than one (1) of the members
appointed under this subdivision may be of the same political
party.
(2) Two (2) members appointed by the president pro tempore
of the senate. Not more than one (1) of the members appointed
under this subdivision may be of the same political party.
Sec. 3. An individual appointed as a member of the task force
serves at the pleasure of the appointing authority.
Sec. 4. The governor shall appoint a voting member of the task
force as the chairperson of the task force. The individual appointed
as chairperson of the task force serves as chairperson at the
pleasure of the governor.
Sec. 5. (a) The task force shall do the following:
(1) In 2013, recommend to the general assembly a funding
formula for the distribution of state tuition support after June
30, 2014, that complies with this chapter. The task force may
recommend more than one (1) alternative funding formula.
(2) In 2014 and every two (2) years thereafter, review and
recommend to the general assembly any revisions to the
funding formula for state tuition support that the task force
determines necessary or appropriate to carry out this chapter.
The task force may recommend more than one (1) alternative
funding formula.
(3) Report the recommendations of the task force and the
basis for the recommendations of the task force under
subdivisions (1) and (2) to the legislative council in an
electronic format under IC 5-14-6 before October 1, 2013, and
October 1 of each even-numbered year.
(4) Monitor the extent to which the department, school
corporations, and schools match revenues to actual
expenditures on the eligible pupils for whom the revenues
were received.
(5) Perform any other function that may facilitate the
implementation or operation of a weighted school funding
formula.
(b) The task force may do the following:
(1) Review and recommend to the department revisions in the
methods and procedures used by the department to collect
school data or the department's Statewide Longitudinal Data
System to facilitate improvements in the matching of revenues
to actual expenditures on the eligible pupils for whom the
revenues were received.
(2) Make any report to the department, the state board, or the
legislative council that the task force determined appropriate.
A report to the legislative council must be in an electronic
format under IC 5-14-6.
Sec. 6. The formula recommended under section 5 of this
chapter must:
(1) establish funding categories that identify eligible pupils
with similar educational needs;
(2) determine the relative cost of educating each category of
eligible pupils relative to the median cost of educating all
eligible pupils; and
(3) convert the relative costs into funding weights based on
percentages of a foundation funding amount.
Sec. 7. The task force shall consider the following factors in
establishing funding categories and funding weights under this
chapter:
(1) Grade level.
(2) Relative income of the households in which eligible pupils
reside.
(3) Familiarity with the English language.
(4) Past achievement level.
(5) Status as high ability learners.
(6) Disability status or other participation in special education programs.
(7) Participation in career and technical education studies.
The task force may consider other demographics or factors, including any higher or lower costs related to school size or location, such as costs associated with educating an eligible pupil in an urban or a rural setting.
Sec. 8. The task force may recommend a funding formula that realigns funding patterns among school corporations and public schools from funding levels received before July 1, 2014, over a period not to exceed three (3) years.
Sec. 9. The task force may not recommend the distribution of state tuition support based on the number of teaching positions, teaching ratios, or staffing norms.
Sec. 10. The task force shall design funding weights and funding categories for the distribution of state tuition support that, to the extent foreseeable, in the aggregate, will not result in distributions of state tuition support in a state fiscal year exceeding the appropriation made for state tuition support distributions for that state fiscal year.
Sec. 11. The department shall staff the task force. Members of the task force shall have the same access to student data as employees of the department. Members of the task force shall maintain the confidentiality of confidential information provided by the department.
Sec. 12. The expenses of the task force shall be paid from money appropriated to the department.
Sec. 13. Each member of the task force who is not a state employee is entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). The member is also entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
Sec. 14. Each member of the task force who is a state employee but who is not a member of the general assembly is entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
Sec. 15. Each member of the task force who is a member of the general assembly is entitled to receive the same per diem, mileage, and travel allowances paid to legislative members of interim study committees established by the legislative council. Per diem, mileage, and travel allowances paid under this section shall be paid from appropriations made to the legislative council or the legislative services agency.
Sec. 16. Each member of the task force who is a member of the general assembly is a nonvoting member.
Sec. 17. A majority of the voting members on the task force constitute a quorum of the task force.
Sec. 18. The affirmative votes of a majority of the voting members on the task force are required for the task force to take action on any measure, including final reports.
Sec. 19. The funding weights and the funding categories to be used in the calculation of state tuition support distributions under IC 20-43-17 and estimated state tuition support distributions under IC 20-43-14-5 are the funding weights and funding categories enacted by the general assembly. The legislative council shall provide for the introduction of legislation in the 2014 session of the general assembly of legislation establishing funding weights and funding categories for the calculation of state tuition support distributions for the state fiscal year beginning July 1, 2014, and ending June 30, 2015. In establishing funding weights and funding categories, the legislative council shall provide that the legislation be prepared after reviewing any available recommendations of the task force.
Chapter 17. Calculation of State Tuition Support
Sec. 1. This chapter applies to state tuition support distributions after June 30, 2014.
Sec. 2. The funding amount to be used in sections 3 and 4 of this chapter is four thousand six hundred forty-three dollars ($4,643).
Sec. 3. (a) This section does not apply to a virtual charter school.
(b) A school's state tuition support for a state fiscal year is the result determined under STEP SIX of the following formula:
STEP ONE: Determine the number of eligible pupils counted in the fall ADM count of the school that is conducted in the state fiscal year.
STEP TWO: Determine the result of:
(A) the funding amount specified in section 2 of this chapter for the state fiscal year; multiplied by
(B) the STEP ONE amount.
STEP THREE: Determine the number of eligible pupils determined under STEP ONE who meet the criteria for inclusion in each funding category given a separate funding weight under IC 20-43-16.
STEP FOUR: For each funding category identified in STEP THREE, determine the result of:
(A) the funding weight for that funding category; multiplied by
(B) the number of eligible pupils in that category determined under STEP THREE; multiplied by
(C) the funding amount specified in section 2 of this chapter for the state fiscal year.
STEP FIVE: Determine the result of:
(A) the STEP TWO amount; plus
(B) the sum of the STEP FOUR amounts.
Sec. 4. (a) This section applies to a virtual charter school.
(b) A school's state tuition support for a state fiscal year is the result determined under STEP SIX of the following formula:
STEP ONE: Determine the result of:
(A) the funding amount specified in section 2 of this chapter for the state fiscal year; multiplied by
(B) eight hundred seventy-five thousandths (.875).
STEP TWO: Determine the number of eligible pupils counted in the fall ADM count of the school that is conducted in the state fiscal year.
STEP THREE: Determine the result of:
(A) the STEP ONE amount; multiplied by
(B) the STEP TWO amount.
STEP FOUR: Determine the number of eligible pupils determined under STEP TWO who meet the criteria for inclusion in a special education funding category given a separate funding weight under IC 20-43-16.
STEP FIVE: For each special education funding category identified in STEP FOUR, determine the result of:
(A) the funding weight for that special education funding category; multiplied by
(B) the number of eligible pupils in that special education category determined under STEP FOUR; multiplied by
(C) the funding amount specified in section 2 of this
chapter for the state fiscal year.
STEP SIX: Determine the result of:
(A) the STEP THREE amount; plus
(B) the sum of the STEP FIVE amounts.
(1) The sum of the tuition, transfer tuition, and fees required for enrollment or attendance of the eligible student at the eligible school selected by the eligible individual for a school year that the eligible individual (or the parent of the eligible individual) would otherwise be obligated to pay to the eligible school;
(2) An amount equal to:
(A) ninety percent (90%) of the state tuition support amount determined under section 5 of this chapter if the eligible individual is a member of a household with an annual income of not more than the amount required for the individual to qualify for the federal free or reduced price lunch program; and
(B) fifty percent (50%) of the state tuition support amount determined under section 5 of this chapter if the eligible individual is a member of a household with an annual income of not more than one hundred fifty percent (150%) of the amount required for the individual to qualify for the federal free or reduced price lunch program.
(3) If the eligible individual is enrolled in grade 1 through 8, the maximum choice scholarship that the eligible individual may receive for a school year is four thousand five hundred dollars ($4,500).
(b) This subsection applies after June 30, 2014. If a state tuition
support distribution is made to an eligible school in a school year
as a result of counting the eligible individuals in the ADM of the
eligible school, the maximum amount to which the eligible
individual is entitled under this chapter is reduced by the amount
of the state tuition support attributable to that eligible individual.
However, the amount of the reduction may not reduce the choice
scholarship grant provided under this chapter below zero (0).
STEP ONE: Determine the school corporation in which the eligible individual has legal settlement.
STEP TWO: Determine the amount of state tuition support that the school corporation identified under STEP ONE is eligible to receive under IC 20-43 for the calendar year in which the current school year begins, excluding amounts provided for special education grants under IC 20-43-7 and career and technical education grants under IC 20-43-8.
STEP THREE: Determine the result of:
(A) the STEP TWO amount; divided by
(B) the current ADM (as defined in IC 20-43-1-10) for the school corporation identified under STEP ONE for the calendar year used in STEP TWO.
(b) This subsection applies after June 30, 2014. The state tuition support amount to be used in section 4(a)(2) of this chapter for an eligible individual is equal to the dollar amount specified in IC 20-43-17-2.
(b) As required by IC 20-43-16-10, as added by this act, the school funding task force shall design funding weights and funding categories for the distribution of state tuition support that, to the extent foreseeable, in the aggregate, will not result in distributions of state tuition support in the state fiscal year beginning July 1,
2014, and ending June 30, 2015, exceeding the appropriation made
for state tuition support under subsection (a).
(c) This SECTION expires July 1, 2015.
