Senate Bill 576 Summary

• Establishes a grant program funded from the state gaming fund to compensate school corporations for property tax revenue lost due to property tax rate caps under IC 6-1.1-20.6.

• School corporations losing more than 33% of property tax revenue automatically qualify for grants equal to 80% of the lost amount; those losing 33% or less may apply for grants up to 80% of losses as determined by the Department of Local Government Finance.

• Requires the budget agency to certify replacement amounts to the Department of Education by July 30 (initial estimate) and November 1 (final estimate) each year.

• Mandates grants be distributed in two equal installments based on estimated amounts, with final settlement adjustments made after the budget agency's final certification.

• Grant funds must first cover losses to school corporations' debt service funds, with any remaining amounts available for capital projects, transportation, school bus replacement, or racial balance funds as determined by each school corporation.