IN SB0432

Establishes grants from the state gaming fund to school corporations to replace property tax revenue lost due to property tax rate caps, effective July 1, 2011.

School corporations losing more than 33% of property tax revenue due to rate caps automatically qualify for levy replacement grants equal to 80% of the lost amount.

School corporations losing 33% or less of property tax revenue may apply for grants in amounts determined by the department of local government finance, not to exceed 80% of losses.

Annually appropriates from the state gaming fund to the department of education the amount necessary to make these grants to eligible school corporations.

Grants must be used to replace lost revenue in debt service funds first, with any remaining amounts deposited in capital projects, transportation, school bus replacement, or racial balance funds as determined by the school corporation.