News & Press: IASBO News

General Assembly Activities

Wednesday, March 13, 2019  

GENERAL ASSEMBLY ACTIVITIES

Senate Appropriations Committee

Late yesterday afternoon the committee heard HB 1021, education finance.  Representative Thompson is the author of the bill and Senator Bassler is the Senate sponsor.  The bill contains issues that IASBO had asked Representative Thompson to include in the bill regarding HEA 1009 including the elimination of the notice for the capital expenditure plan and the school bus replacement plan. 

At the hearing, Senator Mishler, chair of the committee, presented amendment #4 to the committee.  The main issue in the amendment dealt with the circuit breaker waiver threshold amount.  Currently, the threshold to qualify for the waiver is a 10% loss or more due to the circuit breaker.  The amendment raised the threshold to 40%.  This is a major change that will have a significant impact on current waiver participants.  The Legislative Services Agency has determined the school corporations that qualify for the waiver (the list is below).  That list contains 98 school corporations and only 27 are over the 40% threshold.  Therefore, the amendment will mean that 71 corporations will lose funding in their Operation Funds.   The total amount of funding lost will be over $45 million.  And, to make matters worse, the effective date of the 40% threshold is retroactive to January 1, 2019.  So, this new threshold begins this year.  The amendment passed 6-4 on a party-line vote.

Testifying against the amendment were IASBO, ISBA and ISTA.  All of the associations supported HB 1021 before the amendment.  IASBO provided the history of the circuit breaker waiver that began in 2010.  The General Assembly knew when the property tax caps were passed that some school corporations would be adversely impacted in their property tax funds.  For the 2009-11 state budget, $55 million was appropriated for “school circuit breaker replacement credits”.  A calculation was added to that budget on how the monies would be distributed.  Then came the Great Recession, and this appropriation was deleted from the state budget.  The waiver procedure for circuit breaker losses was then  implemented and has been extended every two years since that time.  This is a major policy change regarding circuit breaker losses.  In a year where the legislature wants to have more money in the Education Fund for classroom purposes, this provision will make transfers more difficult.  The Operation Funds in the affected corporations will be greatly challenged because of the loss of the waiver.  Transfers will be greater to the Operation Fund from the Education Fund for the impacted corporations if the amended bill moves forward.  The committee voted 7-4 on party-lines to move the bill to second reading.  After the hearing, Representative Thompson asked our help to restore the 10% threshold.  He understands the negative impact of the amendment. 

If your corporation is listed below the 40% threshold, you need to contact your Senators and alert them of the impact of the loss of the waiver on your school corporation.  This is a serious situation.  The following list can be found in the fiscal impact statement for HB 1021 on the General Assembly website.

Percentage of 2018 Transportation Levy Lost to Circuit Breakers Losses of 10% or More

(Before Reallocation Permitted Under IC 6-1.1-20.6-9.9)

 

 

Maximum

 

Percent of

Circuit Breaker

Losses That Could

 

Corp

 

School Corporation

Transportation

Levy Lost

Be Reallocated to

Debt Funds

5380

Beech Grove City School Corporation

100.0%

2,740,989

6340

Cannelton City School Corporation

100.0%

146,120

5275

Anderson Community School Corporation

89.7%

4,946,014

1970

Muncie Community School Corporation

83.1%

4,109,571

5310

Franklin Township Community School Corp

77.0%

5,964,473

4690

Gary Community School Corporation

75.9%

4,777,875

5375

M.S.D. Wayne Township School Corporation

68.8%

7,519,694

5280

Elwood Community School Corporation

67.5%

531,431

3030

Westfield-Washington School Corporation

66.3%

5,530,955

4680

Lake Station School Corporation

63.6%

351,954

0875

Logansport Community School Corporation

60.4%

1,402,545

5300

M.S.D. Decatur Township School Corp

60.4%

3,098,317

1000

Clarksville Community School Corporation

58.2%

756,505

3135

Mt. Vernon Community School Corporation

55.5%

1,786,547

2950

Linton-Stockton School Corporation

52.1%

362,467

4335

Vincennes Community School Corporation

47.1%

931,601

3500

Kokomo-Center Township Cons School Corp

46.2%

2,332,939

4225

Franklin Community School Corporation

45.3%

1,888,951

3460

Taylor Community School Corporation

45.1%

427,443

3315

Avon Community School Corporation

44.9%

4,066,130

4145

Clark-Pleasant Community School Corp

43.2%

2,244,690

4215

Edinburgh Community School Corporation

42.5%

178,256

5635

Peru Community School Corporation

42.2%

504,926

6350

Tell City-Troy Township School Corp

41.3%

419,811

2315

Goshen Community School Corporation

40.7%

1,797,529

1170

Frankfort Community School Corporation

40.6%

608,670

8060

Wabash City School Corporation

40.3%

324,459

5855

Crawfordsville Community School Corp

39.3%

542,110

1405

Washington Community School Corporation

38.9%

479,020

4925

Michigan City Area School Corporation

37.7%

2,039,060

4650

Lake Ridge School Corporation

36.6%

417,877

3305

Brownsburg Community School Corporation

35.1%

2,378,953

5245

Frankton-Lapel Community School Corp

34.1%

657,929

2270

Concord Community School Corporation

34.0%

1,275,104

3325

Danville Community School Corporation

33.8%

802,533

4710

Hammond City School Corporation

33.2%

1,003,686

8360

Centerville-Abington Comm School Corp

33.0%

334,722

3445

New Castle Community School Corporation

32.3%

460,349

5255

South Madison Community School Corp

31.7%

864,346

8385

Richmond Community School Corporation

31.4%

626,928

7875

West Lafayette Community School Corp

29.9%

594,411

3480

Eastern Howard Community School Corp

28.7%

308,153

6460

Boone Township School Corporation

27.7%

226,693

3625

Huntington County Community School Corp

27.2%

862,721

5330

M.S.D. Lawrence Township School Corp

26.9%

3,224,510

8030

Vigo County School Corporation

25.8%

1,657,580

1300

Crawford County Community School Corp

25.7%

247,262

2940

Eastern Consolidated School Corporation

25.3%

199,197

6835

Randolph Eastern School Corporation

25.2%

127,876

3295

Northwest Hendricks School Corporation

24.7%

532,003

2865

Marion Community School Corporation

24.0%

436,068

7230

Scott County District No. 1 School Corp

23.4%

138,207

3490

Western School Corporation

23.1%

319,867

4590

River Forest Community School Corp

22.7%

79,742

7205

South Bend Community School Corporation

22.2%

200,380

0630

Zionsville Community School Corporation

22.0%

1,306,855

2305

Elkhart Community School Corporation

21.5%

1,505,401

3070

Noblesville School Corporation

20.7%

1,355,647

2395

Fayette County School Corporation

20.5%

297,460

1010

Greater Clark County School Corporation

20.5%

1,151,491

1910

Yorktown Community Schools

20.4%

217,026

3640

Medora Community School Corporation

20.2%

38,869

4740

Munster Community School Corporation

19.8%

480,790

4945

LaPorte Community School Corporation

19.6%

642,710

4730

School City Of Hobart School Corporation

18.2%

282,510

5360

M.S.D. Warren Township School Corp

17.9%

1,362,085

0125

M.S.D. SW Allen County School Corp

17.6%

958,545

7995

Evansville-Vanderburgh School Corp

17.0%

1,664,618

5385

Indianapolis Public School Corporation

16.9%

3,623,135

7200

Mishawaka City School Corporation

16.9%

79,221

0515

Blackford County School Corporation

16.6%

186,598

2735

North Gibson School Corporation

16.5%

451,528

3455

Charles A. Beard Memorial School Corp

16.3%

158,536

2855

Mississinewa Community School Corp

15.9%

132,325

7365

Shelbyville Central School Corporation

15.8%

424,363

5340

M.S.D. Perry Township School Corporation

15.4%

1,205,365

6825

Randolph Central School Corporation

14.6%

127,971

1940

Daleville Community Schools

14.2%

71,348

1600

South Dearborn Community School Corp

14.0%

244,476

8205

Salem Community School Corporation

13.6%

148,050

8355

Western Wayne School Corporation

13.4%

53,958

5485

Plymouth Community School Corp

13.3%

261,853

0225

Northwest Allen County School Corp

13.3%

720,368

5350

M.S.D. Pike Township School Corporation

13.2%

1,118,272

0235

Fort Wayne Community School Corporation

13.2%

995,808

7855

Lafayette School Corporation

13.0%

649,672

5265

Alexandria Community School Corporation

13.0%

43,672

2120

Greater Jasper Consolidated School Corp

12.9%

404,878

4670

East Chicago City School Corporation

12.2%

81,912

5075

North Lawrence Community School Corp

12.2%

318,100

4760

Whiting City School Corporation

12.0%

31,814

8020

South Vermillion Community School Corp

11.8%

102,909

7945

Tipton Community School Corporation

11.8%

168,722

8305

Nettle Creek School Corporation

11.7%

83,127

7525

Knox Community School Corporation

11.6%

141,856

2260

Baugo Community School Corporation

10.6%

152,508

1620

Lawrenceburg Community School Corp

10.2%

135,252

7175

Penn-Harris-Madison-School Corporation

10.2%

445,095

 

 

 

104,814,848