STATEHOUSE — State Rep. Wendy McNamara (R-Mt. Vernon) authored House Bill (HB) 1110 passed out of the Indiana House of Representatives on Tuesday.
HB 1110 deals with school capital projects funds. While school general funds are primarily funded by the state, school capital projects funds are primarily funded by property taxes.
HB 1110 extends the authority for school corporations to use money in their respective capital projects funds to pay the costs of utilities and insurance through the 2015 calendar year.
State law currently authorizes capital projects funds to be used for paying insurance and utilities costs, only through the 2013 calendar year. HB 1110 provides an extension through the 2015 calendar year.
The bill also states that amounts available for expenditure under this section that exceed 3.5% of the school corporation's 2005 calendar year distribution must be used to pay storm water fees charged to the school corporation.
“As an educator, I recognize that school corporations are in need of the authority and flexibility to use their funds to maintain the level of services that are required by law,” said Rep. McNamara. “The essence of this bill is to give schools the ability to make payments from their capital projects funds for the next biennium.”
HB 1110 passed the House unanimously and will also be sent to the Senate for further consideration.