House Bill (S)

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DIGEST

School financial management. Does the following, effective January 1, 2019: (1) Eliminates the school general fund. (2) Creates an education fund to be used as the exclusive fund to pay expenses allocated to student instruction and learning. (3) Creates an operations fund to replace the capital projects fund, the transportation fund, the school bus replacement fund, an art association or a historical society fund, and the public playground fund. Provides that the state board of accounts shall before January 1, 2019, develop a chart of accounts to be used by school corporations to reflect the implementation of the education fund School financial management. Does the following, effective January 1, 2019: (1) Eliminates the school general fund. (2) Creates an education fund to be used as the exclusive fund to pay expenses allocated to student instruction and learning. (3) Creates an operations fund to replace the capital projects fund, the transportation fund, the school bus replacement fund, an art association or a historical society fund, and the public playground fund. Provides that the state board of accounts shall before January 1, 2019, develop a chart of accounts to be used by school corporations to reflect the implementation of the education fund and the operations fund. Provides that the levy for a school corporation's operations fund consists of the following separately calculated levies: (1) A transportation levy. (2) A school bus replacement levy. (3) A capital projects levy. (4) For certain schools, levies to provide funding for an art association, a historical society, or a public playground. Provides that on January 1, 2019, the balance in the school corporation's general fund shall be transferred to the education fund. Specifies that before March 1, 2019, the governing body of a school corporation may transfer to the school corporation's operations fund, from the amounts transferred from the school corporation's general fund, any amounts that are not allocated to student instruction and learning. Allows transfers between the education fund and operations fund. Provides new allowable expenditures from the operations fund to include all skilled trades, school maintenance vehicles, and contracted services related to buildings and grounds. Eliminates the requirement to publish the entire capital projects plan and school bus replacement plan. Removes the approval of the plans and appropriations by the department of local government finance. Eliminates various dedicated funds and moves the purpose for each of these funds to the education fund or operations fund. Creates the school corporation referendum controlled project tax levy fund to pay for projects approved by a voter referendum. Makes corresponding changes. Extends (through 2019) the ability in current law for a school corporation to allocate circuit breaker credits proportionately (without taking protected taxes into account) under certain circumstances. Provides that a school corporation that has an ADM of more than 15,000 may not issue bonds after August 15, 2020, unless the school corporation has for its preceding budget year prepared an annual financial report using the modified accrual basis of accounting in accordance with generally accepted accounting principles. Provides that a county that has a population of more than 100,000 and a municipality that has a population of more than 75,000 may not issue bonds after June 30, 2020, unless the county or municipality has for its preceding budget year prepared an annual financial report using the modified accrual basis of accounting in accordance with generally accepted accounting principles. Allows the state examiner to waive these requirements if the state examiner determines that a waiver is in the best interest of the school corporation, county, or municipality. Replaces the provisions in current law (which would be phased in during 2017-2020) concerning annual financial report requirements that must be met before a school corporation, county, or municipality may issue bonds. Provides that effective July 1, 2017, a school corporation may not issue any bonds unless it has filed its annual financial report with the department of education. Provides that effective July 1, 2017, a county or municipality may not issue any bonds unless it has filed its annual financial report with the state examiner for the preceding fiscal year. ... View more