Indiana § 20-40-18-7 - Limitations on expenditures for capital projects

§ 20-40-18-7. Limitations on expenditures for capital projects

Sec. 7. (a) This section sets forth an exclusive list of the expenditures that may be made from the operations fund under section 5(1) of this chapter, as set forth in the school corporation's plan or amended plan.

(b) Subject to the expenditures that are identified in the school corporation's plan or amended plan, the operations fund shall be used for the following:

(1) Site acquisition.

(2) Site development.

(3) Building acquisition, construction, replacement, renovation, remodeling, improvement, and maintenance, including building materials and employment services described in subsection (c).

(4) Rental of real estate, buildings, facilities, and equipment. However, the fund may not be used for payments authorized under IC 20-47-2 and IC 20-47-3.

(5) To repair and replace buildings and to repair and replace building fixtures that are:

(A) owned or leased by the school corporation; and

(B) of a type constituting loss capable of being covered by casualty insurance.

(6) Purchase, lease, repair, or maintenance of equipment, including maintenance vehicles to be used by the school corporation. However, the fund may not be used to pay for the following:

(A) The purchase, lease, repair, or maintenance of vehicles that are not maintenance vehicles.

(B) Except as provided in subdivision (7), equipment to be used primarily for interscholastic or extracurricular activities.

(7) Service contracts for janitorial and custodial services, maintenance services, snow and ice removal services, trash removal services, mowing and lawn care services, pest control services, and any other routine services normally required in the maintenance or upkeep of school facilities.

(8) Repair, replacement, or site acquisition that is necessitated by an emergency.

(9) Construction, repair, replacement, remodeling, or maintenance of a school sports facility. However, the maximum expenditures under this subdivision in a calendar year may not exceed two and seven-tenths percent (2.7%) of the property tax revenues levied for the fund in the calendar year.

(10) Utilities.

(11) Property and casualty insurance.

(12) Purchase, lease, upgrade, maintain, or repair technology that will not be allocated to student instruction and learning under IC 20-42.5, including the following:

(A) Computer hardware, computer software, wiring and computer networks, and communication access systems used to connect with computer networks or electronic gateways.

(B) Services of full-time or part-time computer maintenance employees.

(C) Conducting nonrecurring inservice technology training of school employees.

(D) Implementing the technology preparation curriculum.

(E) Participating in a program to provide educational technologies, including any program under the educational technology program described in IC 20-20.5-6.

(F) Obtaining any combination of equipment or services described in clauses (D) and (E).

(13) To pay advances, together with interest on the advances, from the common school fund for educational technology programs under IC 20-49-4.

(14) To pay for energy saving contracts entered into by a school corporation under IC 36-1-12.5.

(15) To maintain a joint school established with a school corporation in an adjacent state under IC 20-23-11 as is otherwise provided by law for maintaining the public schools in Indiana.

(16) To pay a judgment rendered against the school corporation, or rendered against an officer or employee of the school corporation for which the school corporation is liable under IC 34-13-2, IC 34-13-3, or IC 34-13-4 (or IC 34-4-16.5, IC 34-4-16.6, or IC 34-4-16.7 before their repeal).

(17) To pay a claim or settlement for which the school corporation is liable under IC 34-13-2, IC 34-13-3, or IC 34-13-4 (or IC 34-4-16.5, IC 34-4-16.6, or IC 34-4-16.7 before their repeal).

(18) To pay a premium, management fee, claim, or settlement for which the school corporation is liable under a federal or state statute, including IC 22-3 and IC 22-4.

(19) To pay a settlement or claim for which insurance coverage is permitted under IC 20-26-5-4(a)(15).

(20) All other lawful expenses that are not expenses described in IC 20-40-2-4.

(21) To pay for expenses incurred as a result of unusual circumstances.

(c) The fund shall be used to pay for services of school corporation employees who perform services considered to be a skilled trade by the United States Department of Labor, Employment and Training Administration. For purposes of this subsection, skilled trade services do not include janitorial or comparable routine services normally provided in the daily operation of school facilities or equipment. Payment may be made for employee services only if the employees perform:

(1) construction of;

(2) renovation of;

(3) remodeling of;

(4) repair of; or

(5) maintenance on;

the facilities and equipment of the school corporation.

As added by P.L.244-2017, SEC.86. Amended by P.L.214-2025, SEC.198; P.L.74-2026, SEC.145.