APPROPRIATION

The authority or right to expend public funds. Several appropriations comprise a school budget and except in the Capital Projects Fund appropriations are valid one calendar year. An appropriation can be increased by an "additional appropriation".

ASSESSED VALUE (AV)

The total dollar value assigned to all real property and improvements plus personal property subject to taxation. Effective March 1, 2001 the assessed value will be true tax value. Locally elected assessors determine property values with appraisal guides prescribed by the Department of Local Government Finance. These values may be changed by the county board of review. The Department of Local Government Finance assess all public utilities and may make adjustments to other assessments.

AVERAGE DAILY ATTENDANCE (ADA)

The average attendance of students in a school corporation taken over a three week period beginning the first Monday after Labor Day. Kindergarten is counted as one-half ADA. A full year ADA is also determined and is used for statistical purposes.

AVERAGE DAILY MEMBERSHIP (ADM)

The number of students with legal settlement in the school corporation who are enrolled and attending school in the school corporation including students with legal settlement in another corporation where the parents are paying for the cost of education (cash transfer). Also, children of state employees residing on state property, children placed by the Division of Disability, Aging, and Rehabilitative Services (DARS), children placed by the Division of Mental Health (DMH), and children placed in the school corporation by county welfare, courts, or another licensed child placing agency. ADM also includes students who are enrolled in a public school and a nonpublic school, have legal settlement in a public school corporations and are receiving instructional services from the public school corporation. Students who were enrolled in the corporation in a prior year but who have not been attending or receiving services from the school corporation by the official count date cannot be included as part of the ADM. The ADM count date is the second Friday after Labor Day. Kindergarten is counted as one-half ADM.

BASE LEVY, FROZEN LEVY, MAXIMUM NORMAL TAX LEVY (MNTL)

The dollar amount of property taxes collected in 1973 with provisions for adjustments. Except as provided by adjustments this levy is the ceiling on revenue available from the property tax.

BUDGET CYCLE - LEGAL EXPECTATION

The school budget must be advertised to its taxpayers twice and be the subject of discussion at a public hearing before it is adopted. The last date for the first publication of the budget is to be made no less than ten days prior to the public hearing (IC 6-1.1-17-3). The last date for the second publication of the budget is to be made is no less than three days before the public hearing (IC 5-3-1-2). The last date for the public hearing of the budget is 10 days prior to the adoption of the budget (IC 6-1.1-17-5). The last date for adoption of the budget is September 20 (IC 6-1.1-17-5).

CAPITAL PROJECTS FUND

The Capital Projects Fund (CPF) was established by the 1987 General Assembly in IC 21-2-15. A school corporation must annually prepare a three year CPF Plan, conduct a public hearing, publish notice of adoption, and allow taxpayers the right to file a petition objecting to the Plan. The first year of the Plan becomes a part of the annual budget. The CPF can be used for land acquisition and development, fees for professional services, educational specification development, building acquisition, construction, and improvement, rental of buildings and equipment, purchase of mobile or fixed equipment, certain emergencies, maintenance of equipment, construction, repair, replacement, remodeling or maintenance of a school sports facility as long as the expenditure does not exceed 5% of the property tax levy, certain staff services, allocating funds for future projects, and transferring funds to the Repair and Replacement Fund. The Department of Local Government Finance has a detailed memorandum concerning the Capital Projects Fund.

DEBT SERVICE FUND

The debt service fund is used to budget and account for receipts and expenditures necessary to meet the annual debt obligations of the school corporation. Expenditures from this fund may be used to make bond and/or lease rental payments and state technology and construction loans. Interest on loans taken for the purpose of any other fund can be paid from the debt service fund. For taxation purposes this fund is only used when there is a need to retire debt. The tax rate must be sufficient to raise the amount necessary to meet the debt obligations during the year.

FLAT GRANT

This is a method of distributing state money to school corporations. A uniform dollar amount per some defined unit is paid to all corporations. Although the defined unit typically is ADA or ADM, it may be any specified unit.

FOUNDATION PROGRAM

This is a method of distributing state money to school corporations. A minimum educational program is expressed in terms of dollars per some unit and a uniform chargeable tax rate against property valuation is subtracted. Indiana had a foundation funding program until 1974 when the "tax freeze" became effective.

FUND

A complete accounting entity reflecting financial transactions, both receipts and expenditures, of money for a specific purpose. The fund concept also applies to budget activities.

GENERAL FUND

The General Fund is used to budget and account for all receipts and expenditures for the basic operation and the programs of the school corporation. Expenditures from this fund may be made for items associated with the daily operation of a school corporation. This includes expenses for salaries of teachers, administrators, support staff, fringe benefits, supplies, heat, lights, maintenance and other day-to-day operation expenses.

NON-REVENUE RECEIPT

Money borrowed which increases the debt of the school corporation or money received in exchange for some other asset in the school corporation.

PROPERTY TAX LEVY

The product of a specified tax rate and the assessed value. Levy terms include tuition support, maximum, and excessive.

PROPERTY TAX RATE

A statement in dollars and cents, expressed per each $100 of assessed value, that will yield a specific amount of money in property taxes. The yield is also referred to as the levy.

REVENUE RECEIPT

Money received that adds to the monetary assets of the school corporation without a corresponding addition to the debt of the school corporation or a decrease in another asset(s) of the school corporation. The two most common revenue receipts are property tax revenue and money from state support.

SCHOOL BUDGET

A financial plan considering both revenue and expenditures necessary to meet the educational program of the school corporation. The budget is valid one year. The actual calculation of a budget for an Indiana school corporation encompasses an 18 month period – the last 6 months of the prior budget and the 12 months of the new budget.

SCHOOL BUDGET YEAR

The budget year is a 12 month period beginning January 1 and ending December 31 of a specified year.

SPECIAL EDUCATION PRESCHOOL FUND

The special education preschool fund was enacted by the 1991 General Assembly to enable school corporations to implement IC 20-1-6-14.1. This statute requires each school corporation to provide each preschool handicapped child with an appropriate special education. IC 21-2-117-3 requires each school corporation to establish a special education preschool fund to be used for the revenue and expenses to operate the preschool program. Revenue to the fund is from local sources and from state support.

SCHOOL TRANSPORTATION FUND

IC 21-2-11.5-2(a) requires each school corporation to establish a school transportation fund which is the exclusive fund for the payment of operating costs associated with the transportation program. Operating costs attributable to the school transportation fund are the salaries of drivers, the transportation supervisor, mechanics and garage employees, clerks and other transportation related employees. It will also pay for the cost of contracted transportation services, wages of independent contractors, contracts with common carriers, transportation related insurance, gasoline, lubricants, tires, repairs, contracted repairs, parts, supplies, and other transportation related expenses.

SCHOOL BUS REPLACEMENT FUND

IC 21-2-11.5-2(b) requires each school corporation to establish a school bus replacement fund. The school bus replacement fund is the exclusive fund to pay for the replacement of school buses, either through a purchase agreement or under a lease agreement.

WEIGHTING OR ADDITIONAL PUPIL COUNT

This is a method of providing additional state assistance on the basis of certain educational programs costing more than a regular program.