Bill > SB0148

This bill extends provisions related to loans from the common school fund for the Gary Community School Corporation, specifically addressing financial flexibility during periods of economic distress. The bill allows the Distressed Unit Appeal Board to recommend loan term extensions to the State Board of Finance if loan payments are delayed or suspended, with the extension period matching the suspension duration. If loan payments are suspended, the school corporation must establish a school improvement fund and transfer an amount equal to the suspended 2020 payments. This fund can only be used for specific purposes such as repairing, renovating, or demolishing school buildings and property that existed as of July 1, 2020. All expenditures from the school improvement fund require approval from the Distressed Unit Appeal Board, and the school corporation may levy a tax in the debt service fund to support these efforts. The school corporation can also spend other funds for approved improvements and later reimburse those expenses from the school improvement fund. Importantly, these provisions will expire on January 1, 2028, effectively extending the previous provisions by three years and providing continued financial flexibility for the Gary Community School Corporation.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/148/details