Indiana § 20-42-4-2 - Actuarial funding requirement; separate accounting

§ 20-42-4-2. Actuarial funding requirement; separate accounting

Sec. 2. (a) A school corporation must fund on an actuarially sound basis the postretirement or severance benefits that will be paid to employees under a plan, an agreement, or a contract described in section 1(1) of this chapter or an increase described in section 1(2) of this chapter.

(b) A school corporation must place the assets used to fund on an actuarially sound basis the postretirement or severance benefits in a separate fund or account, and the school corporation may not commingle the assets in the separate fund or account with any other assets of the school corporation.

[Pre-2006 Recodification Citation: 21-2-20-2.]

As added by P.L.2-2006, SEC.165.

IC 20-42.5ARTICLE 42.5. ALLOCATION OF EXPENDITURES TO STUDENT INSTRUCTION

Ch. 1.Purposes and General Provisions Ch. 2.Authority to Allocate Expenditures to Student Instruction and Learning Ch. 3.State Board Action Ch. 4.Repealed

IC 20-42.5-1Chapter 1. Purposes and General Provisions

20-42.5-1-1Purposes of article 20-42.5-1-2Supplemental nature of article

IC 20-42.5-1-1Purposes of article Sec. 1. This article has the following purposes:

(1) To maximize the allocation and use of taxpayer provided resources by school corporations and schools for student instruction and learning.

(2) To confirm the authority of school corporations to use a variety of methods to reduce the costs of acquisition of products and services.

(3) To instruct the state board to oversee the consideration of statewide means to acquire products and services.

(4) To provide a means for school corporations to access technical assistance and other support in the consideration of means to increase the allocation of resources to student instruction and learning.

(5) To recognize school corporations that achieve effective allocation of resources to student instruction and learning.

[Pre-2007 Higher Education Recodification Citation: 21-10-1-1.]

As added by P.L.2-2007, SEC.240.

IC 20-42.5-1-2Supplemental nature of article Sec. 2. This article is supplemental to and does not abrogate the powers given to school corporations under the home rule provisions of IC 20-26-3, and those powers remain in full effect.

[Pre-2007 Higher Education Recodification Citation: 21-10-1-2.]

As added by P.L.2-2007, SEC.240.

IC 20-42.5-2Chapter 2. Authority to Allocate Expenditures to Student Instruction and Learning

20-42.5-2-0.5"Applicable nonpublic school" 20-42.5-2-1Actions to reduce noninstructional expenditures 20-42.5-2-2Shared services arrangements 20-42.5-2-3Collaboration with contiguous school corporations 20-42.5-2-4Support by educational service centers; reporting of efforts to state board

IC 20-42.5-2-0.5"Applicable nonpublic school" Sec. 0.5. As used in this chapter, "applicable nonpublic school" has the meaning set forth in IC 20-20.5-1-1.

As added by P.L.126-2017, SEC.6. Amended by P.L.74-2026, SEC.148.

IC 20-42.5-2-1Actions to reduce noninstructional expenditures Sec. 1. A school corporation, charter school, or applicable nonpublic school individually, in collaboration with other school corporations, charter schools, or applicable nonpublic schools acting jointly, and through the educational services centers may undertake action to reduce noninstructional expenditures and allocate the resulting savings to student instruction and learning. Actions taken under this section include the following:

(1) Pooling of resources with other school corporations, charter schools, or applicable nonpublic schools for liability insurance, property and casualty insurance, worker's compensation insurance, employee health insurance, vision insurance, dental insurance, or other insurance, whether by pooling risks for coverage or for the purchase of coverage, or by the creation of or participation in insurance trusts, subject to the following:

(A) School corporations, charter schools, and applicable nonpublic schools that elect to pool assets for coverage must create a trust under Indiana law for the assets. The trust is subject to regulation by the department of insurance as follows:

(i) The trust must be registered with the department of insurance.

(ii) The trust shall obtain stop loss insurance issued by an insurer authorized to do business in Indiana with an aggregate retention of not more than one hundred twenty-five percent (125%) of the amount of expected claims for the following year.

(iii) Contributions by the school corporations, charter schools, and applicable nonpublic schools, acting jointly, must be set at one hundred percent (100%) of the aggregate retention plus all other costs of the trust.

(iv) The trust shall maintain a fidelity bond in an amount approved by the department of insurance. The fidelity bond must cover each person responsible for the trust for acts of fraud or dishonesty in servicing the trust.

(v) The trust is subject to IC 27-4-1-4.5 regarding claims settlement practices.

(vi) The trust shall file an annual audited financial statement with the department of insurance not later than May 1 of each year.

(vii) The trust is not covered by the Indiana insurance guaranty association created under IC 27-6-8. The liability of each school corporation, charter school, and applicable nonpublic school is joint and several.

(viii) The trust is subject to examination by the department of insurance. All costs associated with an examination shall be borne by the trust.

(ix) The department of insurance may deny, suspend, or revoke the registration of a trust if the commissioner finds that the trust is in a hazardous financial condition, the trust refuses to be examined or produce records for examination, or the trust has failed to pay a final judgment rendered against the trust by a court within thirty (30) days.

(B) The department of insurance may adopt rules under IC 4-22-2 to implement this subdivision.

(2) Electing, as an individual school corporation, charter school, or applicable nonpublic school, or as more than one (1) school corporation, charter school, or applicable nonpublic school acting jointly, to aggregate purchases of natural gas commodity supply from any available natural gas commodity seller for all schools included in the aggregated purchases. A rate schedule that is:

(A) filed by a natural gas utility; and

(B) approved by the Indiana utility regulatory commission;

must include provisions that allow a school corporation, charter school, or applicable nonpublic school, or more than one (1) school corporation, charter school, or applicable nonpublic school acting jointly, to elect to make aggregated purchases of natural gas commodity supplies. Upon request from a school corporation, charter school, or applicable nonpublic school, a natural gas utility shall summarize the rates and charges for providing services to each school in the school corporation, to the charter school, or to the applicable nonpublic school, or to each school in a school corporation, charter school, and applicable nonpublic school that are acting jointly, on one (1) summary bill for remitting payment to the utility.

(3) Consolidating purchases with other school corporations, charter schools, applicable nonpublic schools, or units of government of the following:

(A) School buses and other vehicles and vehicle fleets.

(B) Fuel, maintenance, or other services for vehicles or vehicle fleets.

(C) Food services.

(D) Facilities management services.

(E) Transportation management services.

(F) Curricular materials, technology, and other school materials and supplies.

(G) Any other purchases a school corporation, charter school, or applicable nonpublic school may require.

Purchases may be made by contiguous school corporations, including charter schools or applicable nonpublic schools in the contiguous school corporations, as part of regional consolidated purchasing arrangements, or from consolidated sources under multistate cooperative bidding arrangements.

[Pre-2007 Higher Education Recodification Citation: 21-10-2-1.]

As added by P.L.2-2007, SEC.240. Amended by P.L.286-2013, SEC.125; P.L.126-2017, SEC.7; P.L.214-2025, SEC.200.

IC 20-42.5-2-2Shared services arrangements Sec. 2. A school corporation, charter school, or applicable nonpublic school may use shared services arrangements with other school corporations, charter schools, applicable nonpublic schools, and units of government, including:

(1) the use of shared administrative services overseeing transportation, food service, facilities, or other operations;

(2) the use of shared administrative services to manage finance, payroll, human resources, information technology, purchasing, or other administrative services; and

(3) the use of shared resources to provide instruction, supplemental services, extracurricular activities, or other student services.

School corporations, charter schools, and applicable nonpublic schools are not required to merge schools, consolidate, or otherwise relinquish control of curriculum, instruction, or student activities to use shared services arrangements.

[Pre-2007 Higher Education Recodification Citation: 21-10-2-2.]

As added by P.L.2-2007, SEC.240. Amended by P.L.126-2017, SEC.8.

IC 20-42.5-2-3Collaboration with contiguous school corporations Sec. 3. A school corporation may collaborate with contiguous school corporations to explore the use of cooperatives among school corporations, commonly managed school corporations, or the consolidation of school corporations to provide effective and efficient management of the school corporations or functions of the school corporations.

[Pre-2007 Higher Education Recodification Citation: 21-10-2-3.]

As added by P.L.2-2007, SEC.240.

IC 20-42.5-2-4Support by educational service centers; reporting of efforts to state board Sec. 4. (a) Educational service centers established under IC 20-20.5-1 shall support and facilitate actions by school corporations and charter schools under this article, including by the use of an educational service center's existing cooperative agreements.

(b) School corporations, charter schools, and educational service centers may use the division of finance of the department and the office of management and budget to provide technical assistance under this article.

(c) Not later than August 31 of each year, the educational service centers shall report to the state board the results of the efforts of the educational service centers under this article during the preceding school year.

[Pre-2007 Higher Education Recodification Citation: 21-10-2-4.]

As added by P.L.2-2007, SEC.240. Amended by P.L.126-2017, SEC.9; P.L.74-2026, SEC.149.

IC 20-42.5-3Chapter 3. State Board Action

20-42.5-3-1Repealed 20-42.5-3-2Repealed 20-42.5-3-3Repealed 20-42.5-3-4Repealed 20-42.5-3-5Student instructional expenditures report; school corporation expenditures report 20-42.5-3-6Repealed 20-42.5-3-7Chart of accounts requirements

IC 20-42.5-3-1Repealed[Pre-2007 Higher Education Recodification Citation: 21-10-3-1.]

As added by P.L.2-2007, SEC.240. Amended by P.L.286-2013, SEC.126. Repealed by P.L.233-2015, SEC.297.

IC 20-42.5-3-2Repealed[Pre-2007 Higher Education Recodification Citation: 21-10-3-2.]

As added by P.L.2-2007, SEC.240. Repealed by P.L.233-2015, SEC.298.

IC 20-42.5-3-3Repealed[Pre-2007 Higher Education Recodification Citation: 21-10-3-3.]

As added by P.L.2-2007, SEC.240. Repealed by P.L.233-2015, SEC.299.

IC 20-42.5-3-4Repealed[Pre-2007 Higher Education Recodification Citation: 21-10-3-4.]

As added by P.L.2-2007, SEC.240. Repealed by P.L.130-2018, SEC.89.

IC 20-42.5-3-5Student instructional expenditures report; school corporation expenditures report Sec. 5. (a) For each school year using the 2005-2006 school year as a baseline:

(1) the office of management and budget shall analyze and report to the state board, the governor, and the general assembly the ratio of student instructional expenditures to all other expenditures for the previous school year; and

(2) each school corporation shall submit a report or make available to the department in a form and manner determined by the department the percentage of resources spent by the school corporation during the previous school year on each of the following categories of expenditures:

(A) Student academic achievement expenditures.

(B) Student instructional support expenditures.

(C) Overhead and operational expenditures.

(D) Nonoperational expenditures.

(b) The reports to the general assembly under subsection (a)(1) must be submitted to the executive director of the legislative services agency in an electronic format under IC 5-14-6.

[Pre-2007 Higher Education Recodification Citation: 21-10-3-5.]

As added by P.L.2-2007, SEC.240. Amended by P.L.233-2015, SEC.300; P.L.130-2018, SEC.90; P.L.74-2026, SEC.150.

IC 20-42.5-3-6Repealed[Pre-2007 Higher Education Recodification Citation: 21-10-3-6.]

As added by P.L.2-2007, SEC.240. Repealed by P.L.233-2015, SEC.301.

IC 20-42.5-3-7Chart of accounts requirements Sec. 7. (a) The chart of accounts used by school corporations must:

(1) coincide with the categories of expenditures described in section 5(a)(2) of this chapter; and

(2) provide the ability to determine expenditures made at and for each individual school building of a school corporation.

Each school corporation shall use the chart of accounts developed under this section.

(b) The state board of accounts may, in consultation with the department and the office of management and budget, modify the chart of accounts as necessary to make the chart of accounts coincide with the categories of expenditures described in section 5(a)(2) of this chapter.

As added by P.L.244-2017, SEC.91. Amended by P.L.130-2018, SEC.91; P.L.74-2026, SEC.151.

IC 20-42.5-4Chapter 4. RepealedRepealed by P.L.74-2026, SEC.152.

IC 20-43ARTICLE 43. STATE TUITION SUPPORT

Ch. 1.General Provisions Ch. 2.Maximum State Distribution Ch. 3.General Computations; Amounts Used in State Tuition Support Calculations Ch. 4.Determination of Pupil Enrollment; ADM; Adjusted ADM Ch. 5.Repealed Ch. 6.Calculation of Basic Tuition Support Distribution Ch. 7.Special Education Grants Ch. 8.Career and Technical Education Grants Ch. 9.Repealed Ch. 10.Other Tuition Support Grants Ch. 10.5.Academic Performance Grants Ch. 11.5.Repealed Ch. 12.Repealed Ch. 12.2.Repealed Ch. 13.Complexity Grants Ch. 14.Repealed Ch. 15.Repealed Ch. 16.Teacher Appreciation Grant Program

IC 20-43-1Chapter 1. General Provisions

20-43-1-1Expiration 20-43-1-2Application of definitions 20-43-1-3Repealed 20-43-1-4"Adjusted ADM" 20-43-1-5Repealed 20-43-1-6"ADM" 20-43-1-7"ADM of the previous year" 20-43-1-7.5"Attending" 20-43-1-8"Basic tuition support" 20-43-1-8.5"Child find" 20-43-1-9"Complexity index" 20-43-1-10"Current ADM" 20-43-1-11"Eligible pupil" 20-43-1-11.5"Enrolled" 20-43-1-12Repealed 20-43-1-12.3Repealed 20-43-1-13"Foundation amount" 20-43-1-14"Full-time equivalency" 20-43-1-14.5"High value program" 20-43-1-15Repealed 20-43-1-15.5"Less than moderate value program" 20-43-1-16Repealed 20-43-1-16.5"Moderate value program" 20-43-1-17Repealed 20-43-1-18Repealed 20-43-1-18.5"Parentally placed nonpublic school students with disabilities" 20-43-1-19"Previous year revenue" 20-43-1-20Repealed 20-43-1-21Repealed 20-43-1-21.5Repealed 20-43-1-22Repealed 20-43-1-23"School corporation" 20-43-1-24"Special education grant" 20-43-1-24.5Repealed 20-43-1-25"State tuition support" 20-43-1-26Repealed 20-43-1-27Repealed 20-43-1-28Repealed 20-43-1-29Repealed 20-43-1-29.3Repealed 20-43-1-30"Career and technical education grant" 20-43-1-31"Virtual charter school" 20-43-1-32Repealed 20-43-1-33Expired 20-43-1-34"Virtual instruction"