SB 226 Summary

• Removes petition, remonstrance, and referendum requirements until January 1, 2016, for school corporations with at least 30% circuit breaker impact to restructure debt through refunding bonds.

• Allows school corporations to budget and pay transportation costs from the general fund until December 31, 2015.

• Establishes a distressed school fund with $10,000,000 appropriated from the state general fund; the budget agency may issue loans to designated distressed school corporations at interest rates up to prime rate minus one percent (1%), with terms not exceeding ten years.

• Reduces the distressed unit appeal board from nine members to five members, including the superintendent of public instruction, and allows board designation of distressed school corporations based on refunding bond issuance, two successive failed referenda, or severe circuit breaker tax credit impacts.

• Requires school corporations that provided transportation in any year after June 30, 2010, to continue providing transportation to eligible students unless the governing body approves termination with at least three years' advance notice; allows the department of education to waive this requirement if a safety plan is approved.