STATEHOUSE—Rep. Bob Cherry’s (R-Greenfield) legislation regarding Rainy Day Fund loans to school corporations passed the Indiana House of Representatives late Monday night with a 91-4 vote.
House Bill (HB) 1192 would authorize a Rainy Day Fund loan to school corporations in financial duress from the economic recession. Specifically, this legislation would provide debt relief to the Mt. Vernon, Hanover, Franklin Township and MSD Boone Township school corporations, all requiring financial assistance.
HB 1192 would permit a loan totaling $18.5 million for all eligible school districts to be repaid within six years. These school districts are unable to borrow privately because they are categorized as high risk.
“We have an obligation as lawmakers to assist schools in dire financial straits due to unpredictable economic and funding changes,” said Rep. Cherry. “The students, faculty and administration at each respective school district will be directly affected in a positive way by this legislation. We need to ensure that operations can continue as normal for the students in these districts.”
HB 1192 will move to the Senate for further discussion and debate. If signed into law, it will go into effect on July 1, 2012.
To find the most up-to-date bill status, visit www.in.gov/legislative.