Bill Text: IN SB0420 | 2011 | Regular Session | Introduced
Bill Title: Weighted student school funding formula.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Appropriations [SB0420 Detail]
Download: Indiana-2011-SB0420-Introduced.html
Citations Affected: IC 20-20-11-3; IC 20-24-1-2; IC 20-26-11-13;
IC 20-31-8.5; IC 20-33-8.5-5; IC 20-39-1-4; IC 20-40-8; IC 20-42.5;
IC 20-43; IC 20-49-1-3.
Synopsis: Weighted student school funding formula. Requires school
corporations to establish academic growth goals for each student.
Establishes a method of internal accounting for school corporations
requiring school corporations to allocate 95% of the funds received by
the school corporation (exclusive of money used for debt service and
capital construction) to each elementary school and secondary school
operated by the school corporation. Specifies that the principal of an
elementary school or a secondary school is primarily responsible for
determining how money allocated to the school will be spent.
Establishes a school funding formula. Provides standards for
distributing categorical grants. Provides a method for making state
tuition support and certain other money available to each elementary
school and secondary school based on a weighted student formula
developed by the school corporation with the assistance of a school
funding task force.
Effective: July 1, 2011; January 1, 2012.
January 12, 2011, read first time and referred to Committee on Appropriations.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education.
(1) Conducting feasibility studies concerning the following:
(A) Mandating full-day or half-day kindergarten programs.
(B) Choice of enrollment programs.
(C) Establishing magnet schools.
(2) An evaluation of P.L.390-1987(ss).
(3) Exploring different or expanded testing methods.
(4) An evaluation of the primetime program (as defined in IC 20-43-1-22, before its repeal on January 1, 2012).
(5) Administering pilot programs concerning school academic readiness factors of students in kindergarten and grades 1 and 2.
(6) Studying the implications of offering preschool programs for special education students.
(7) Conducting the student services programs under IC 20-20-27.
(8) The Indiana writing project.
(b) The evaluation of P.L.390-1987(ss) and the primetime program described in subsection (a)(2) and (a)(4) shall be conducted by an entity other than the department under a contract entered into by the department.
(c) The student services programs under subsection (a)(7) shall be funded under the program based upon criteria approved by the department. The programs must include a study of:
(1) the role of the public school guidance counselor; and
(2) the guidance counselor proficiency statements developed under P.L.342-1989(ss), SECTION 39, as approved by the department.
(1) "Class of school" refers to a classification of each school or program in the transferee corporation by the grades or special programs taught at the school. Generally, these classifications are denominated as kindergarten, elementary school, middle school or junior high school, high school, and special schools or classes, such as schools or classes for special education, career and technical education, or career education.
(2) "Special equipment" means equipment that during a school year:
(A) is used only when a child with disabilities is attending school;
(B) is not used to transport a child to or from a place where the child is attending school;
(C) is necessary for the education of each child with disabilities that uses the equipment, as determined under the individualized education program for the child; and
(D) is not used for or by any child who is not a child with disabilities.
(3) "Student enrollment" means the following:
(A) The total number of students in kindergarten through grade 12 who are enrolled in a transferee school corporation
on a date determined by the state board.
(B) The total number of students enrolled in a class of school
in a transferee school corporation on a date determined by the
state board.
However, a kindergarten student shall be counted under clauses
(A) and (B) as one-half (1/2) student. The state board may select
a different date for counts under this subdivision. However, the
same date shall be used for all school corporations making a count
for the same class of school.
(b) Each transferee corporation is entitled to receive for each school
year on account of each transferred student, except a student
transferred under section 6 of this chapter, transfer tuition from the
transferor corporation or the state as provided in this chapter. Transfer
tuition equals the amount determined under STEP THREE of the
following formula:
STEP ONE: Allocate to each transfer student the capital
expenditures for any special equipment used by the transfer
student and a proportionate share of the operating costs incurred
by the transferee school for the class of school where the transfer
student is enrolled.
STEP TWO: If the transferee school included the transfer student
in the transferee school's ADM for a school year, allocate to the
transfer student a proportionate share of the following general
fund revenues of the transferee school for, except as provided in
clause (C), the calendar year in which the school year ends:
(A) State tuition support distributions.
(B) Property tax levies under IC 20-45-7 and IC 20-45-8.
(C) Excise tax revenue (as defined in IC 20-43-1-12) as
determined under IC 20-43-3-2 and received for deposit in
the calendar year in which the school year begins.
(D) Allocations to the transferee school under IC 6-3.5.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the
STEP ONE amount.
If a child is placed in an institution or facility in Indiana by or with the
approval of the department of child services, the institution or facility
shall charge the department of child services for the use of the space
within the institution or facility (commonly called capital costs) that is
used to provide educational services to the child based upon a prorated
per student cost.
(c) Operating costs shall be determined for each class of school
where a transfer student is enrolled. The operating cost for each class
of school is based on the total expenditures of the transferee
corporation for the class of school from its general fund expenditures
as specified in the classified budget forms prescribed by the state board
of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure that is made from extracurricular account
receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal
to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined
under the rules adopted by the state board; multiplied by
(B) the number of students using the special equipment during
at least part of the school year.
(e) When an item of expense or cost described in subsection (c)
cannot be allocated to a class of school, it shall be prorated to all
classes of schools on the basis of the student enrollment of each class
in the transferee corporation compared with the total student
enrollment in the school corporation.
(f) Operating costs shall be allocated to a transfer student for each
school year by dividing:
(1) the transferee school corporation's operating costs for the class
of school in which the transfer student is enrolled; by
(2) the student enrollment of the class of school in which the
transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for
less than the full school year of student attendance, the transfer tuition
shall be calculated by the part of the school year for which the
transferred student is enrolled. A school year of student attendance
consists of the number of days school is in session for student
attendance. A student, regardless of the student's attendance, is enrolled
in a transferee school unless the student is no longer entitled to be
transferred because of a change of residence, the student has been
excluded or expelled from school for the balance of the school year or
for an indefinite period, or the student has been confirmed to have
withdrawn from school. The transferor and the transferee corporation
may enter into written agreements concerning the amount of transfer
tuition due in any school year. If an agreement cannot be reached, the
amount shall be determined by the state board, and costs may be
established, when in dispute, by the state board of accounts.
(g) A transferee school shall allocate revenues described in
subsection (b) STEP TWO to a transfer student by dividing:
(1) the total amount of revenues received; by
(2) the ADM of the transferee school for the school year that ends
in the calendar year in which the revenues are received.
However, for state tuition support distributions or any other state
distribution computed using less than the total ADM of the transferee
school, the transferee school shall allocate the revenues to the transfer
student by dividing the revenues that the transferee school is eligible
to receive in a calendar year by the student count used to compute the
state distribution.
(h) Instead of the payments provided in subsection (b), the
transferor corporation or state owing transfer tuition may enter into a
long term contract with the transferee corporation governing the
transfer of students. The contract may:
(1) be entered into for a period of not more than five (5) years
with an option to renew;
(2) specify a maximum number of students to be transferred; and
(3) fix a method for determining the amount of transfer tuition
and the time of payment, which may be different from that
provided in section 14 of this chapter.
(i) A school corporation may negotiate transfer tuition agreements
with a neighboring school corporation that can accommodate additional
students. Agreements under this section may:
(1) be for one (1) year or longer; and
(2) fix a method for determining the amount of transfer tuition or
time of payment that is different from the method, amount, or
time of payment that is provided in this section or section 14 of
this chapter.
A school corporation may not transfer a student under this section
without the prior approval of the child's parent.
Chapter 8.5. Academic Growth Goals
Sec. 1. This chapter applies to a school corporation for school years beginning after June 30, 2012.
Sec. 2. Each teacher of a public school, in consultation with students' parents or legal guardians and with students where age appropriate, shall establish academic growth goals for each student at the outset of each school 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 the following assessment tools:
(1) The performance of the student on the ISTEP program test.
(2) Other assessments recommended by the education roundtable established by IC 20-19-4-2 and approved by the state board.
(3) Assessment tools selected by the principal and faculty of the public school.
Sec. 3. The principal of each public school shall do the following:
(1) Ensure that each teacher 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 teacher meets the requirements specified in section 2 of this chapter.
(2) Ensure that the school operates in an environment that empowers parents to be involved in their children's education. At a minimum, the principal shall ensure that the procedures at the school require a teacher to communicate in person with a student's parent or legal guardian if the student is not meeting the student's academic achievement goals.
Sec. 4. At least annually, the superintendent of a school corporation shall evaluate the performance of each principal of each public school maintained by the school corporation to ensure that the principal is held accountable for the overall level of academic achievement at the public school. At a minimum, the evaluation of the principal must assess the principal's performance as stipulated in the budget submitted for the public school under IC 20-42.5-5.
student referred under the agreement.
(1) apply to expenditures from all sources of revenue, including federal funds, state distributions, property taxes, excise taxes, and gifts;
(2) permit available revenues and expenditures to be budgeted, allocated, tracked, and reported on a per public school basis;
(3) permit expenditures under the control of the principal of the public school to be budgeted, allocated, tracked, and reported on a per public school basis;
(4) permit a public school's budget and available revenues to be adjusted in response to changes during a school year in the number and education needs of students served by each public school;
(5) provide a separate account for each public school;
(6) identify the academic achievement and growth results to be achieved by students enrolled in each public school, identify the extent to which the results are achieved, and identify the expenditures made to achieve the targeted results; and
(7) facilitate compliance with IC 20-42.5.
(1) A school corporation's:
(A) state tuition support; and
(B) maximum permissible tuition support levy (as defined in IC 20-45-1-15 before its repeal);
for the calendar year.
(2) The school corporation's excise tax revenue
SECTION 322, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 19. Money in the fund may be used
to pay for up to one hundred percent (100%) of the following costs of
a school corporation:
(1) Utility services.
(2) Property or casualty insurance.
(3) Both utility services and property or casualty insurance.
A school corporation's expenditures under this section may not exceed
in 2010, and in 2011, and in a calendar year beginning after
December 31, 2011, three and five-tenths percent (3.5%) of the school
corporation's 2005 calendar year distribution.
Chapter 5. Public School Budgets and Cost Accounting
Sec. 1. For budget years that begin after December 31, 2011, each school corporation shall adopt a budgeting and cost accounting system that treats each public school in the school corporation as a separate cost center. Except as provided in sections 2 and 3 of this chapter, funds received by the school corporation and expenditures of the school corporation shall be accounted for and budgeted on a per school basis.
Sec. 2. Section 1 of this chapter does not apply to the following:
(1) An amount received and used by the school corporation for the repayment of bonds.
(2) An amount received and used by the school corporation for capital construction.
(3) An amount that:
(A) is budgeted by the school corporation to pay costs incurred to provide centralized services; and
(B) does not exceed five percent (5%) of the funds of the school corporation remaining after deducting the amounts covered by subdivisions (1) and (2).
Sec. 3. A school corporation may phase in compliance with section 1 of this chapter. However:
(1) after June 30, 2014, a school corporation may not retain more than the amount specified in section 2(3) of this chapter for centralized services; and
(2) after June 30, 2018, all school corporations must cross-charge each public school for the actual salary and benefits of the employees at individual schools.
Sec. 4. The principal of a public school has exclusive control of:
(1) funds allocated to the public school; and
(2) the financial matters of the public school.
Sec. 5. Except as provided in sections 2 and 3 of this chapter, after June 30, 2012, a school corporation may not make an expenditure of funds received by the school corporation that has not been included in a budget of a public school created by the principal of the public school in accordance with this chapter.
Sec. 6. The principal of a public school shall annually create a budget for the public school and submit the budget to the superintendent of the school corporation operating the public school. The principal may revise the budget at any time during the school year by submitting the revised budget to the superintendent. In developing the annual budget or a revised budget, the principal shall use a process that involves:
(1) school employees; and
(2) parents of children enrolled at the public school.
Sec. 7. The budget for a public school must:
(1) reflect the primary purpose of each public school in Indiana, which is to facilitate the academic achievement and growth of enrolled students; and
(2) identify:
(A) the academic achievement and growth results to be achieved by the public school; and
(B) the expenditures to be made to achieve the targeted results.
Sec. 8. In applying this chapter, a principal of a public school, the school's employees, and parents of children enrolled at the public school shall comply with:
(1) budgeting and accounting practices and standards as set forth in state law as they apply to an individual public school; and
(2) the terms applicable to any categorical aid under the control of the public school.
Sec. 9. Any funds remaining in a public school's account at the end of a budget year remain in the public school's account and do not revert to the school corporation.
Sec. 10. Funds remaining in a public school's account at the end of a budget year belong to the individual public school and may be used at the discretion of the principal of the public school. Individual public schools shall adopt policies concerning the role that the public school's employees, parents of children enrolled in the public school, and others will play in advising the principal
about the use of the funds.
Sec. 11. Any deficit remaining in a public school's budget at the
end of a budget year is the responsibility of the school. Individual
public schools shall adopt policies concerning the role that the
school's employees, parents of children enrolled in the public
school, and others will play in advising the principal about
resolving deficits.
Sec. 12. Each school corporation shall maintain the budget
record of each public school in the school corporation, as part of
the centralized services provided to each school. The school
corporation shall pay the costs of maintaining and publicizing a
public school's financial records from the amount retained for
centralized services under section 2(3) of this chapter.
Chapter 6. Allocation of Categorical Aid to School Corporations and Charter Schools
Sec. 1. This chapter applies to all:
(1) categorical state aid; and
(2) categorical federal aid;
to schools that is distributed or administered by the department or another state agency after June 30, 2011.
Sec. 2. This chapter does not apply to state tuition support.
Sec. 3. A proportionate share of funding from federal and state categorical aid programs shall be distributed to school corporations and charter schools under this section. The share of funding from a categorical aid program that is distributed to a school corporation or charter school shall be based on the number of students enrolled in the school corporation or charter school who are eligible to receive services through the categorical aid program. Eligibility shall be determined on the basis of verifiable student need.
Sec. 4. Funding from federal and state categorical aid programs that is not distributed under section 3 of this chapter and that relates to specific uses of funds, such as class size reduction, shall be distributed in a block grant form, contingent upon regular evaluations of effectiveness in improving student achievement.
Chapter 7. Weighted Student Formula for Allocation of
Foundation Funds Among Public Schools
Sec. 1. This chapter applies to the allocation of the following
funds for budget years beginning after December 31, 2011:
(1) State tuition support.
(2) Supplemental Lake County tax levies imposed under
IC 20-45-7.
(3) Supplemental Dearborn County tax levies imposed under
IC 20-45-8.
(4) School referendum fund levies imposed under IC 20-46-1.
(5) The part of a capital projects fund levy used for qualified
utility and insurance costs described in IC 20-40-8-19.
(6) Excise taxes and local income taxes received by a school
corporation based on the levies described in subdivisions (2)
through (5).
Sec. 2. As used in this chapter, "foundation funds" refers to
funds described in section 1 of this chapter.
Sec. 3. Except as provided in IC 20-42.5-5-2 and IC 20-42.5-5-3,
the total amount of all foundation funds received by a school
corporation shall be distributed among the school corporation's
public schools in conformity with a weighted student formula
developed under this chapter. The amount distributed to a public
school is available for expenditure by the public school in
accordance with the budget developed for the public school under
IC 20-42.5-5.
Sec. 4. (a) The governing body of each school corporation shall
adopt and each school corporation shall implement a weighted
student formula to distribute foundation funds received by the
school corporation among the school corporation's public schools.
(b) The weighted student formula must take into account the
recommendations of the school funding task force established
under section 5 of this chapter.
(c) The weighted student formula must provide funding for a
public school based on the following formula:
STEP ONE: Determine the foundation amount available for
allocation among the public schools of the school corporation.
STEP TWO: Divide the STEP ONE amount by the number of
students enrolled in the school corporation to establish a
foundation amount for each student.
STEP THREE: Multiply the foundation amount for each
student by student and school factors or weights that
recognize the additional costs incurred in educating identified
categories of students and the varying costs in providing that
education by identified categories of schools.
Sec. 5. Not later than August 1, 2011, the governing body of each
school corporation shall establish and appoint the initial members
of a school funding task force.
Sec. 6. A school funding task force shall have the number of
members established by the governing body. However, the school
funding task force, at a minimum, must include:
(1) members who are principals and teachers employed by the
school corporation;
(2) members who are administrators and teachers who work
in the area of special education of students; and
(3) members who are parents of children enrolled in the
school corporation.
Sec. 7. The school funding task force shall recommend to the
governing body a formula for allocating the total amount of
funding received by the school corporation from all federal, state,
and local sources among the public schools in the school
corporation, including any cooperatives in which the school
corporation is a member.
Sec. 8. The school funding task force shall do the following:
(1) Identify the factors that should be used to allocate
educational funding among the public schools operated by the
school corporation (such as student grade level, poverty,
language, disability status, and academic achievement level)
and the other relevant demographics of each public school
(such as size and location, and urban or rural character).
(2) Specify the relative unit weights that should be given each
factor described in subdivision (1).
(3) Based on the factors and demographics determined under
subdivision (1), recommend a weighted student formula to the
governing body that will permit funding to:
(A) follow each child, on a per student basis; and
(B) arrive at each public school as real dollars (not as
teaching positions, ratios, or staffing norms) that can be
spent flexibly, with accountability systems focused on
results rather than inputs, programs, or activities.
(4) Recommend procedures to ensure that funding systems
and budgets (including all line item revenues and
expenditures) will be made transparent to administrators,
teachers, parents, and citizens.
(5) Perform any other function that may facilitate the
implementation of the weighted student formula
recommended by the school funding task force or adopted by
the governing body.
Sec. 9. The initial recommendations of the school funding task
force shall be submitted to the governing body before the
governing body adopts a budget for the first budget year for the
school corporation that begins after July 1, 2011. The initial
recommendation must include details concerning the phase-in of
the recommendations as well as a recommended schedule for
implementing a policy of charging public schools for actual teacher
salaries and benefits.
Sec. 10. The governing body shall annually reconsider and, if
necessary, adjust the weighted student formula for the school
corporation to ensure the appropriate distribution of funding to
each public school. In reviewing the formula, the governing body
shall consult with and take into account the recommendations of
the school funding task force.
thousand dollars ($6,548,900,000) in 2010; and
(3) (1) six billion five hundred sixty-eight million five hundred
thousand dollars ($6,568,500,000) in 2011;
(2) six billion six hundred twenty-nine million three hundred
fifty-six thousand six hundred sixty-five dollars
($6,629,356,665) in 2012; and
(3) six billion six hundred thirty-four million five hundred
seventy-seven thousand six hundred ninety-seven dollars
($6,634,577,697) in 2013.
(1) as basic tuition support;
(2) for academic honors diploma awards;
(3) before January 1, 2012, for primetime distributions;
(4) for special education grants;
(5) for career and technical education grants;
(6) before January 1, 2012, for restoration grants;
(7) before January 1, 2012, for small school grants; and
(8) after December 31, 2011, for economically disadvantaged learner grants;
for a particular year exceeds the maximum state distribution for a calendar year, the amount to be distributed for state tuition support under this article to each school corporation during each of the last six (6) months of the year shall be proportionately reduced so that the total reductions equal the amount of the excess.
(b) This subsection applies to student counts for distributions and distributions under this article after December 31, 2011. In determining ADM, each kindergarten pupil 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 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 public school instructional time (as defined in IC 20-30-2-1); divided by
(B) the actual public 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).
STEP ONE: The STEP ONE amount is:
(A) in 2009, four thousand eight hundred twenty-five dollars ($4,825);
(B) in 2010, four thousand five hundred fifty dollars ($4,550); and
(C) in 2011, four thousand five hundred five dollars ($4,505);
STEP TWO: Multiply the STEP ONE amount by the school corporation's complexity index.
(b) This subsection applies to a calendar year beginning after December 31, 2011. A school corporation's foundation amount for a calendar year is four thousand eight hundred fifty-six dollars ($4,856).
(b) This subsection applies to a calendar year ending before January 1, 2012. This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a year that is not equal to the foundation amount for the year. The school
corporation's basic tuition support for a year is equal to the school
corporation's transition to foundation revenue for the year.
(c) This subsection applies to a calendar year ending before
January 1, 2012. This subsection applies to a school corporation that
has transition to foundation revenue per adjusted ADM for a year that
is equal to the foundation amount for the year. The school corporation's
basic tuition support for a year is the sum of the following:
(1) the foundation amount for the year multiplied by the school
corporation's adjusted ADM.
(2) The amount of the annual decrease in federal aid to impacted
areas from the year preceding the ensuing calendar year by three
(3) years to the year preceding the ensuing calendar year by two
(2) years.
(d) This subsection applies to students of a virtual charter school.
who are participating in the pilot program under IC 20-24-7-13. A
virtual charter school's basic tuition support for a year for those
students is the amount determined under IC 20-24-7-13.
(e) This subsection applies to a school corporation other than a
virtual charter school for a calendar year beginning after
December 31, 2011. A school corporation's basic tuition support
for a year is equal to the foundation amount for the year multiplied
by the school corporation's current ADM.
Chapter 13. Economically Disadvantaged Learner Grant
Sec. 1. In addition to a basic tuition support distribution, after December 31, 2011, a school corporation is eligible for an economically disadvantaged learner grant provided under this chapter.
Sec. 2. A school corporation's economically disadvantaged learner grant for a year is equal to:
(1) two thousand four hundred twenty-eight dollars ($2,428); multiplied by
(2) the number of eligible pupils included in the school corporation's ADM who, on the count date, were eligible for free or reduced price lunches.
SECTION 23. THE FOLLOWING ARE REPEALED [EFFECTIVE JANUARY 1, 2012]: IC 20-43-1-4; IC 20-43-1-7; IC 20-43-1-9; IC 20-43-1-12; IC 20-43-1-17; IC 20-43-1-19; IC 20-43-1-20; IC 20-43-1-21; IC 20-43-1-21.5; IC 20-43-1-22; IC 20-43-1-29; IC 20-43-1-29.3; IC 20-43-3-4; IC 20-43-4-7; IC 20-43-5 ; IC 20-43-9; IC 20-43-12; IC 20-43-12.2.
