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IN HB1216
Bill
Status
1/9/2018
Primary Sponsor
Vernon Smith
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AI Summary
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Establishes a new chapter (IC 20-49-10) allowing school corporations to receive forgiveness for principal or interest on common school fund loans or advances.
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Qualifies school corporations for forgiveness if they meet all five criteria: at least 60% of students qualify for free or reduced lunch, property tax collection rate below 50% in the preceding year, designation as a distressed political subdivision, recommendation from the distressed unit appeal board, and state board approval.
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Requires school corporations to apply to the state board for forgiveness in a manner prescribed by the state board.
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Authorizes the budget agency to deposit up to 3% of state general fund reversions into the common school fund annually to offset forgiven advances or loans.
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Becomes effective July 1, 2018.
Legislative Description
Loan forgiveness for distressed schools. Provides that certain school corporations that are distressed political subdivisions may qualify to have common school fund loans or advances forgiven. Provides that the budget agency may approve to deposit reversions to the state general fund into the common school fund to offset advances or loans forgiven.
Last Action
First reading: referred to Committee on Ways and Means
1/9/2018