History of Finance and Budgeting of Indiana Schools

  • Removed Local Control of Gen. Fund

    Removed Local Control of Gen. Fund
    Governor Bowen Gov. Bowen signs into law a bill which changes the way the general fund is constructed which now made it so the general fund was made up of 2/3 state controlled (funded by increased state sales tax) and 1/3 property tax (local).
  • PL 217

    PL 217
    Teachers permitted to collectively bargain.
  • Foundation Type Formula

    Foundation Type Formula
    New formula for General Fund implemented: The dollar amount behind each child was subtracted off each local levy and whatever difference was what would be how much the state would supply.
  • Additional Pupil Count

    Additional Pupil Count
    Additional funds delegated to districts to fund for SPED and Vocational Students.
  • Bottom Up Equalization

    Bottom Up Equalization
    Robert D. Orr Law signed into law by Robert D. Orr which attempted to give equal dollar amount behind every student to bring up under funded schools.
  • Power Equalization Formula

    Power Equalization Formula
    Evan Bayh New formula implemented that would reward the effort of school districts to raise their own local, property tax dollars rather than rely on state dollars.
  • Remonstrance and Petitions Implemented

    Remonstrance and Petitions Implemented
    Large Capital Projects could now be petitioned for or against by the community.
  • Assessed Value Modified

    Assessed Value Modified
    Method of Assessing Property was deemed Unconsitutional. New AV determination implemented which meant less property was assessed, which subsequently and inadvertently raised prop taxes for many homes.
  • Gen. Fund Modified

    Gen. Fund Modified
    Frank O' Bannon General Fund modified again to reduce property tax contribution. New ration is 80% state/20% local.
  • Prop Tax eliminate from Gen. Fund

    Prop Tax eliminate from Gen. Fund
    Mitch Daniels Property Taxes completely eliminated from General Fund. 100% of General Fund now from state.
  • School Voucher Program

    School Voucher Program
    "A statewide school voucher program was enacted. Children in homes with an income under $41,000 could receive vouchers equal to 90% of the cost of their public school tuition and use that money to attend a private school. It provides lesser benefits to households with income over $41,000. The program will be gradually phased in over a three-year period and would be available to all state residents by 2014"