Indiana § 36-1-8-5.1 Rainy day funds established by political subdivisions; transfers by
schools

Indiana Statutes

§ 36-1-8-5.1 — Rainy day funds established by political subdivisions; transfers by schools

Indiana § 36-1-8-5.1

Title 36LOCAL GOVERNMENT

Art. 1GENERAL PROVISIONS

Ch. 8Miscellaneous Fiscal and Administrative Provisions

This text of Indiana § 36-1-8-5.1 (Rainy day funds established by political subdivisions; transfers by schools) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-1-8-5.1 (2026).

Text

Note: This version of section effective until 7-1-2026. See also following version of this section, effective 7-1-2026. Sec. 5.1.

(a)A political subdivision may establish a rainy day fund by the adoption of:

(1)an ordinance, in the case of a county, city, or town; or

(2)a resolution, in the case of any other political subdivision.

(b)An ordinance or a resolution adopted under this section must specify the following:

(1)The purposes of the rainy day fund.

(2)The sources of funding for the rainy day fund, which may include the following:

(A)Unused and unencumbered funds under:

(i)section 5 of this chapter; or

(ii)IC 6-3.6-9-15.

(B)Any other funding source:

(i)specified in the ordinance or resolution adopted under this section; and

(ii)not otherwise prohibited by law.

(c)The rain

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Note: This version of section effective until 7-1-2026. See also
following version of this section, effective 7-1-2026.
Sec. 5.1. (a) A political subdivision may establish a
rainy day fund by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(b) An ordinance or a resolution adopted under this section must
specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may
include the following:
(A) Unused and unencumbered funds under:
(i) section 5 of this chapter; or
(ii) IC 6-3.6-9-15.
(B) Any other funding source:
(i) specified in the ordinance or resolution adopted under this
section; and
(ii) not otherwise prohibited by law.
(c) The rainy day fund is subject to the same appropriation process
as other funds that receive tax money.
(d) In any fiscal year, a political subdivision may, at any time, do the
following:
(1) Transfer any unused and unencumbered funds specified in
subsection (b)(2)(A) from any fiscal year to the rainy day fund.
(2) Transfer any other unobligated cash balances from any fiscal
year that are not otherwise identified in subsection (b)(2)(A) or
section 5 of this chapter to the rainy day fund as long as the
transfer satisfies the following requirements:
(A) The amount of the transfer is authorized by and identified
in an ordinance or resolution.
(B) The amount of the transfer is not more than:
(i) before January 1, 2021, ten percent (10%);
(ii) after December 31, 2020, and before January 1, 2025,
fifteen percent (15%); and
(iii) after December 31, 2024, ten percent (10%);
of the political subdivision's total annual budget adopted under
IC 6-1.1-17 for that fiscal year.
(C) The transfer is not made from a debt service fund.
(e) A political subdivision may use only the funding sources
specified in subsection (b)(2)(A) or in the ordinance or resolution
establishing the rainy day fund. The political subdivision may adopt a
subsequent ordinance or resolution authorizing the use of another
funding source.
(f) The department of local government finance may not reduce the
actual or maximum permissible levy of a political subdivision as a
result of a balance in the rainy day fund of the political subdivision.
(g) A county, city, or town may at any time, by ordinance or
resolution, transfer to:
(1) its general fund; or
(2) any other appropriated funds of the county, city, or town;
money that has been deposited in the rainy day fund of the county, city,
or town.
(h) A school corporation may at any time, by resolution, transfer to
its education fund or operations fund money that has been deposited in
its rainy day fund.

Legislative History

As added by P.L.251-2001, SEC.2. Amended by P.L.90-2002, SEC.461; P.L.173-2003, SEC.19; P.L.267-2003, SEC.15; P.L.81-2004, SEC.45; P.L.53-2011, SEC.2; P.L.105-2013, SEC.1; P.L.288-2013, SEC.71; P.L.197-2016, SEC.120; P.L.140-2018, SEC.29; P.L.38-2021, SEC.79.