Indiana Code
Chapter 20.3. Distressed Political Subdivisions
6-1.1-20.3-17. Loans or Advances From the Common School Fund; Extension of Term; Establishment of a School Improvement Fund; Expenditures; Levy

Sec. 17. (a) If the distressed unit appeal board delays or suspends, for a period determined by the board, any payments on loans or advances from the common school fund under section 6.8 of this chapter, the distressed unit appeal board may recommend to the state board of finance that the term of the loans or advances be extended. If the distressed unit appeal board makes a recommendation to extend the term of the loan or advances, the state board of finance may extend the term of the loans or advances for a period of time that is equal to or less than the number of months for which the payments are delayed or suspended.
(b) If payments on loans or advances from the common school fund are suspended under section 6.8 of this chapter, the distressed unit appeal board shall require that the school corporation:
(1) establish a school improvement fund; and
(2) transfer to the school improvement fund an amount equal to the payments that are delayed or suspended for calendar year 2020.
(c) A school improvement fund established under subsection (b)(1) may be used only for the following purposes:
(1) Repair, renovation, or other improvements to school buildings and property being used for education purposes as of July 1, 2020.
(2) Demolition of school buildings or other structures on school property in existence as of July 1, 2020.
(d) All expenditures from a school improvement fund established under subsection (b)(1) must be approved by the distressed unit appeal board.
(e) A school corporation may, on an annual basis, levy a tax in the debt service fund equal to the amount that would have been deducted from the distribution of state tuition support for the payment of loans made under section 6.8 of this chapter during calendar year 2020 if the loans had not been suspended. The amount received from a tax under this subsection must be transferred from the debt service fund to the education fund.
(f) With the approval of the distressed unit appeal board, a school corporation may spend other funds of the school corporation for the purposes described in subsection (c) and reimburse the expenditures from a school improvement fund established under subsection (b)(1).
(g) This section expires January 1, 2025.
As added by P.L.257-2019, SEC.55. Amended by P.L.154-2020, SEC.7; P.L.165-2021, SEC.68.

Structure Indiana Code

Indiana Code

Title 6. Taxation

Article 1.1. Property Taxes

Chapter 20.3. Distressed Political Subdivisions

6-1.1-20.3-1. "Distressed Unit Appeal Board"

6-1.1-20.3-2. "Distressed Political Subdivision"

6-1.1-20.3-3. "Political Subdivision"

6-1.1-20.3-4. Board Established; Members

6-1.1-20.3-5. Staff; Executive Director Duties; Rules; Funding; Contracts

6-1.1-20.3-6. Petitions to the Board; Petition by Treasurer of State

6-1.1-20.3-6.5. Designation of Distressed Political Subdivisions; Annual Review; Notice

6-1.1-20.3-6.7. "Township Assistance Property Tax Rate"; Designation of Certain Townships as Distressed Political Subdivisions

6-1.1-20.3-6.8. Designation of Gary Community School Corporation as a Distressed Political Subdivision; Powers and Duties

6-1.1-20.3-6.9. Repealed

6-1.1-20.3-7. Repealed

6-1.1-20.3-7.1. Muncie Community School Corporation; Loan

6-1.1-20.3-7.5. Appointment of Emergency Manager; Representation by Attorney General and Immunity From Civil Liability for Fiscal Management Board, Emergency Manager, Chief Financial Officer, and Chief Academic Officer

6-1.1-20.3-8. Repealed

6-1.1-20.3-8.3. Review of School Corporation Petition for a Loan

6-1.1-20.3-8.5. Powers and Duties of Emergency Manager

6-1.1-20.3-8.7. Restrictions on School Corporations Designated as Distressed

6-1.1-20.3-9. Record of Proceedings; Open Door Law

6-1.1-20.3-9.9. Petition to Board Appealing Decision by Emergency Manager

6-1.1-20.3-10. Petition for Judicial Review

6-1.1-20.3-11. Court Rules; Procedure

6-1.1-20.3-12. Burden of Proof; Findings of Fact; Grounds for Relief

6-1.1-20.3-13. Petition for Termination of Distressed Status; Conditions for Termination

6-1.1-20.3-14. Repealed

6-1.1-20.3-15. Requests for Technical Assistance From the Board

6-1.1-20.3-16. Distressed School Corporations; Governing Body; Employee Reductions

6-1.1-20.3-17. Loans or Advances From the Common School Fund; Extension of Term; Establishment of a School Improvement Fund; Expenditures; Levy