2017 Indiana Code
TITLE 20. Education
ARTICLE 26. SCHOOL CORPORATIONS: GENERAL ADMINISTRATIVE PROVISIONS
CHAPTER 11. Legal Settlement and Transfer of Students; Transfer Tuition
20-26-11-13. Determination of transfer tuition
Note: This version of section amended by P.L.256-2017, SEC.185, effective 7-1-2017. See also following version of this section amended by P.L.244-2017, SEC.50, effective 1-1-2019.
Sec. 13. (a) As used in this section, the following terms have the following meanings:
(1) "Class of school" refers to a classification of each school or program in the transferee corporation by the grades or special programs taught at the school. Generally, these classifications are denominated as kindergarten, elementary school, middle school or junior high school, high school, and special schools or classes, such as schools or classes for special education, career and technical education, or career education.
(2) "Special equipment" means equipment that during a school year:
(A) is used only when a child with disabilities is attending school;
(B) is not used to transport a child to or from a place where the child is attending school;
(C) is necessary for the education of each child with disabilities that uses the equipment, as determined under the individualized education program for the child; and
(D) is not used for or by any child who is not a child with disabilities.
(3) "Student enrollment" means the following:
(A) The total number of students in kindergarten through grade 12 who are enrolled in a transferee school corporation on a date determined by the state board.
(B) The total number of students enrolled in a class of school in a transferee school corporation on a date determined by the state board.
However, a kindergarten student shall be counted under clauses (A) and (B) as one-half (1/2) student. The state board may select a different date for counts under this subdivision. However, the same date shall be used for all school corporations making a count for the same class of school.
(b) Each transferee corporation is entitled to receive for each school year on account of each transferred student, except a student transferred under section 6 of this chapter, transfer tuition from the transferor corporation or the state as provided in this chapter. Transfer tuition equals the amount determined under STEP THREE of the following formula:
STEP ONE: Allocate to each transfer student the capital expenditures for any special equipment used by the transfer student and a proportionate share of the operating costs incurred by the transferee school for the class of school where the transfer student is enrolled.
STEP TWO: If the transferee school included the transfer student in the transferee school's current ADM, allocate to the transfer student a proportionate share of the following general fund revenues of the transferee school:
(A) State tuition support distributions received during the calendar year in which the school year ends.
(B) Property tax levies under IC 20-45-7 and IC 20-45-8 for the calendar year in which the school year ends.
(C) The sum of the following excise tax revenue received for deposit in the calendar year in which the school year begins:
(i) Financial institution excise tax revenue (IC 6-5.5).
(ii) Vehicle excise taxes (IC 6-6-5).
(iii) Commercial vehicle excise taxes (IC 6-6-5.5).
(iv) Boat excise tax (IC 6-6-11).
(v) Aircraft license excise tax (IC 6-6-6.5).
(D) Allocations to the transferee school under IC 6-3.6.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the STEP ONE amount.
If a child is placed in an institution or facility in Indiana by or with the approval of the department of child services, the institution or facility shall charge the department of child services for the use of the space within the institution or facility (commonly called capital costs) that is used to provide educational services to the child based upon a prorated per student cost.
(c) Operating costs shall be determined for each class of school where a transfer student is enrolled. The operating cost for each class of school is based on the total expenditures of the transferee corporation for the class of school from its general fund expenditures as specified in the classified budget forms prescribed by the state board of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure that is made from extracurricular account receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined under the rules adopted by the state board; multiplied by
(B) the number of students using the special equipment during at least part of the school year.
(e) When an item of expense or cost described in subsection (c) cannot be allocated to a class of school, it shall be prorated to all classes of schools on the basis of the student enrollment of each class in the transferee corporation compared with the total student enrollment in the school corporation.
(f) Operating costs shall be allocated to a transfer student for each school year by dividing:
(1) the transferee school corporation's operating costs for the class of school in which the transfer student is enrolled; by
(2) the student enrollment of the class of school in which the transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for less than the full school year of student attendance, the transfer tuition shall be calculated by the part of the school year for which the transferred student is enrolled. A school year of student attendance consists of the number of days school is in session for student attendance. A student, regardless of the student's attendance, is enrolled in a transferee school unless the student is no longer entitled to be transferred because of a change of residence, the student has been excluded or expelled from school for the balance of the school year or for an indefinite period, or the student has been confirmed to have withdrawn from school. The transferor and the transferee corporation may enter into written agreements concerning the amount of transfer tuition due in any school year. If an agreement cannot be reached, the amount shall be determined by the state board, and costs may be established, when in dispute, by the state board of accounts.
(g) A transferee school shall allocate revenues described in subsection (b) STEP TWO to a transfer student by dividing:
(1) the total amount of revenues received during a period; by
(2) the current ADM of the transferee school for the period in which the revenues are received.
However, for state tuition support distributions or any other state distribution computed using less than the total current ADM of the transferee school, the transferee school shall allocate the revenues to the transfer student by dividing the revenues that the transferee school is eligible to receive during the period by the student count used to compute the state distribution.
(h) Instead of the payments provided in subsection (b), the transferor corporation or state owing transfer tuition may enter into a long term contract with the transferee corporation governing the transfer of students. The contract may:
(1) be entered into for a period of not more than five (5) years with an option to renew;
(2) specify a maximum number of students to be transferred; and
(3) fix a method for determining the amount of transfer tuition and the time of payment, which may be different from that provided in section 14 of this chapter.
(i) A school corporation may negotiate transfer tuition agreements with a neighboring school corporation that can accommodate additional students. Agreements under this section may:
(1) be for one (1) year or longer; and
(2) fix a method for determining the amount of transfer tuition or time of payment that is different from the method, amount, or time of payment that is provided in this section or section 14 of this chapter.
A school corporation may not transfer a student under this section without the prior approval of the child's parent.
[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-8.1-6.1-8.]
As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.130; P.L.1-2007, SEC.144; P.L.234-2007, SEC.105; P.L.146-2008, SEC.471; P.L.229-2011, SEC.173; P.L.205-2013, SEC.242; P.L.197-2016, SEC.117; P.L.256-2017, SEC.185.
IC 20-26-11-13 Determination of transfer tuition
Note: This version of section amended by P.L.244-2017, SEC.50, effective 1-1-2019. See also preceding version of this section amended by P.L.256-2017, SEC.185, effective 7-1-2017.
Sec. 13. (a) As used in this section, the following terms have the following meanings:
(1) "Class of school" refers to a classification of each school or program in the transferee corporation by the grades or special programs taught at the school. Generally, these classifications are denominated as kindergarten, elementary school, middle school or junior high school, high school, and special schools or classes, such as schools or classes for special education, career and technical education, or career education.
(2) "Special equipment" means equipment that during a school year:
(A) is used only when a child with disabilities is attending school;
(B) is not used to transport a child to or from a place where the child is attending school;
(C) is necessary for the education of each child with disabilities that uses the equipment, as determined under the individualized education program for the child; and
(D) is not used for or by any child who is not a child with disabilities.
(3) "Student enrollment" means the following:
(A) The total number of students in kindergarten through grade 12 who are enrolled in a transferee school corporation on a date determined by the state board.
(B) The total number of students enrolled in a class of school in a transferee school corporation on a date determined by the state board.
However, a kindergarten student shall be counted under clauses (A) and (B) as one-half (1/2) student. The state board may select a different date for counts under this subdivision. However, the same date shall be used for all school corporations making a count for the same class of school.
(b) Each transferee corporation is entitled to receive for each school year on account of each transferred student, except a student transferred under section 6 of this chapter, transfer tuition from the transferor corporation or the state as provided in this chapter. Transfer tuition equals the amount determined under STEP THREE of the following formula:
STEP ONE: Allocate to each transfer student the capital expenditures for any special equipment used by the transfer student and a proportionate share of the operating costs incurred by the transferee school for the class of school where the transfer student is enrolled.
STEP TWO: If the transferee school included the transfer student in the transferee school's current ADM, allocate to the transfer student a proportionate share of the following education fund revenues of the transferee school:
(A) State tuition support distributions received during the calendar year in which the school year ends.
(B) Property tax levies under IC 20-45-7 and IC 20-45-8 for the calendar year in which the school year ends.
(C) The sum of the following excise tax revenue received for deposit in the calendar year in which the school year begins:
(i) Financial institution excise tax revenue (IC 6-5.5).
(ii) Motor vehicle excise taxes (IC 6-6-5).
(iii) Commercial vehicle excise taxes (IC 6-6-5.5).
(iv) Boat excise tax (IC 6-6-11).
(v) Aircraft license excise tax (IC 6-6-6.5).
(D) Allocations to the transferee school under IC 6-3.6.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the STEP ONE amount.
If a child is placed in an institution or facility in Indiana by or with the approval of the department of child services, the institution or facility shall charge the department of child services for the use of the space within the institution or facility (commonly called capital costs) that is used to provide educational services to the child based upon a prorated per student cost.
(c) Operating costs shall be determined for each class of school where a transfer student is enrolled. The operating cost for each class of school is based on the total expenditures of the transferee corporation for the class of school from its education fund and operations fund expenditures as specified in the classified budget forms prescribed by the state board of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure that is made from extracurricular account receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined under the rules adopted by the state board; multiplied by
(B) the number of students using the special equipment during at least part of the school year.
(e) When an item of expense or cost described in subsection (c) cannot be allocated to a class of school, it shall be prorated to all classes of schools on the basis of the student enrollment of each class in the transferee corporation compared with the total student enrollment in the school corporation.
(f) Operating costs shall be allocated to a transfer student for each school year by dividing:
(1) the transferee school corporation's operating costs for the class of school in which the transfer student is enrolled; by
(2) the student enrollment of the class of school in which the transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for less than the full school year of student attendance, the transfer tuition shall be calculated by the part of the school year for which the transferred student is enrolled. A school year of student attendance consists of the number of days school is in session for student attendance. A student, regardless of the student's attendance, is enrolled in a transferee school unless the student is no longer entitled to be transferred because of a change of residence, the student has been excluded or expelled from school for the balance of the school year or for an indefinite period, or the student has been confirmed to have withdrawn from school. The transferor and the transferee corporation may enter into written agreements concerning the amount of transfer tuition due in any school year. If an agreement cannot be reached, the amount shall be determined by the state board, and costs may be established, when in dispute, by the state board of accounts.
(g) A transferee school shall allocate revenues described in subsection (b) STEP TWO to a transfer student by dividing:
(1) the total amount of revenues received during a period; by
(2) the current ADM of the transferee school for the period in which the revenues are received.
However, for state tuition support distributions or any other state distribution computed using less than the total current ADM of the transferee school, the transferee school shall allocate the revenues to the transfer student by dividing the revenues that the transferee school is eligible to receive during the period by the student count used to compute the state distribution.
(h) Instead of the payments provided in subsection (b), the transferor corporation or state owing transfer tuition may enter into a long term contract with the transferee corporation governing the transfer of students. The contract may:
(1) be entered into for a period of not more than five (5) years with an option to renew;
(2) specify a maximum number of students to be transferred; and
(3) fix a method for determining the amount of transfer tuition and the time of payment, which may be different from that provided in section 14 of this chapter.
(i) A school corporation may negotiate transfer tuition agreements with a neighboring school corporation that can accommodate additional students. Agreements under this section may:
(1) be for one (1) year or longer; and
(2) fix a method for determining the amount of transfer tuition or time of payment that is different from the method, amount, or time of payment that is provided in this section or section 14 of this chapter.
A school corporation may not transfer a student under this section without the prior approval of the child's parent.
[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-8.1-6.1-8.]
As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.130; P.L.1-2007, SEC.144; P.L.234-2007, SEC.105; P.L.146-2008, SEC.471; P.L.229-2011, SEC.173; P.L.205-2013, SEC.242; P.L.197-2016, SEC.117; P.L.244-2017, SEC.50.
