Indiana § 20-29-6-3 Unlawful deficit financing

Indiana Statutes

§ 20-29-6-3 — Unlawful deficit financing

Indiana·Title 20 EDUCATION·Art. 29 COLLECTIVE BARGAINING FOR TEACHERS·Ch. 6 Collective Bargaining

(a)It is unlawful for a school employer to enter into any agreement that would place the employer in a position of deficit financing due to a reduction in the employer's actual general fund (before January 1, 2019) or education fund (after December 31, 2018) revenue or an increase in the employer's expenditures when the expenditures exceed the employer's current year actual general fund (before January 1, 2019) or education fund (after December 31, 2018) revenue. Except as provided in subsection (c), revenue does not include money estimated to be or actually transferred from the school corporation's operations fund to its education fund. Revenue does not include money allocated for supplemental payments in a resolution passed under subsection (d).

(b)A contract that provides for deficit

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(a) It is unlawful for a school employer to enter
into any agreement that would place the employer in a position of
deficit financing due to a reduction in the employer's actual general
fund (before January 1, 2019) or education fund (after December 31,
2018) revenue or an increase in the employer's expenditures when the
expenditures exceed the employer's current year actual general fund
(before January 1, 2019) or education fund (after December 31, 2018)
revenue. Except as provided in subsection (c), revenue does not include
money estimated to be or actually transferred from the school
corporation's operations fund to its education fund. Revenue does not
include money allocated for supplemental payments in a resolution
passed under subsection (d).
(b) A contract that provides for deficit financing is void to that
extent, and an individual teacher's contract executed under the contract
is void to that extent.
(c) Notwithstanding subsection (a), before September 15 of any
year, a governing body may pass a one (1) year resolution indicating
that a portion or percentage of money transferred from the operations
fund to the education fund may be considered education fund revenue
for purposes of funding a contract under this chapter and to determine
whether an agreement would place the employer in a position of deficit
financing. The resolution shall expire within one (1) year of the
resolution's adoption by the governing body.
(d) Before September 15 of any year, a governing body may pass a
one (1) or two (2) year resolution indicating that a portion or
percentage of education fund revenue allocated for supplemental fund
payments under IC 20-28-9-1.5(a) is not considered education fund
revenue for the purposes of subsection (a). The resolution shall not
extend beyond the end of the corresponding state budget biennium.
[Pre-2005 Elementary and Secondary Education
Recodification Citation: 20-7.5-1-3.]