Gov. Eric Holcomb today ceremonially signed a new law authored by State Rep. Tony Cook (R-Cicero) providing schools with more budgetary flexibility.
According to Cook, previously, school corporations had to adhere to strict budgetary guidelines, which limited the ability to transfer funds for needed expenditures.
He said this new law creates two simple funding categories: An education fund and an operations fund. Student instructional and learning expenditures can only be paid out of the education fund, while expenditures related to maintenance, capital projects, transportation, bus replacement, utilities and other operations can be paid out of the operations fund. Schools can transfer money between the two funds at their discretion.
“As a former principal and superintendent, I understand how valuable budgetary flexibility is for school corporations,” Cook said. “This funding reform empowers school administrators to direct a greater share of resources to Hoosier students and educators by allowing certain costs to be shifted from the education fund to the operations fund.”
This new law also reforms school property tax levies. School corporations have at least four property tax levies and their associated funds at their disposal. This legislation consolidates the capital, transportation and school bus replacement levies into a new operations levy.
This law goes into effect July 1. To learn more, visit iga.in.gov.
State Rep. Tony Cook (R-Cicero) represents House District 32, which includes all of Tipton County and portions of Hamilton, Madison, Delaware, Howard and Grant counties.