Elections and Strategies Indiana Education Capital Improvement
Indiana School Finance Quick Facts
The General Fund calendar year is from January 1 to December 31 each year. The State of Indiana determines the amount of revenue schools receive based on how many students are enrolled in school along with economic factors of individual school corporations. The majority of employee salaries and benefits are paid from this fund. In addition, the largest portion of utility expenditures is paid from the General Fund.
Debt Service (Local decision)
Debt Service pays for the construction and some technology projects that schools pay for over an extended period of time. Technology projects are normally paid for over a five-year period, and construction projects are paid over 20 years. Increases in debt services is a local decision for each school corporation based on the community desire for building projects along with the age of the buildings. Pension bonds are part of the Debt Service to pay the long-term teacher retirement that was incurred before 2000. Schools can no longer incur additional obligations for teacher retirement.
Capital Projects and Technology Fund (State controlled)
The Capital Projects and Technology Fund is utilized to repair existing buildings and to purchase general equipment and technology. This is a rate driven fund, which means, when the Assessed Valuation decreases, then the CPF decreases. As the value of property increases in a school district, the CPF fund increases. The State of Indiana determines the rate and amount of revenue in this fund each year.