Changes coming for school bus replacement levies

FORT WAYNE, Ind. (WANE) - The State of Indiana has changed a statute on school bus replacement levies . Prior to the 2012 budget year, school districts could put levies before their communities to acquire funding for bus replacements.

The change now puts a cap on those levies, which could potentially force districts to not replace buses, or make cuts in other areas to afford replacements. 

The Department of Local Government Finance  (DLGF) will approve a maximum percentage increase for the levy. Some districts may fall short of funding to replace certain buses. This is a problem since the plan also changes the 10-year replacement to a 12-year replacement cycle.

Two funds are primarily funded by taxpayer levies, the Transportation Fund and the Bus Replacement Fund. If funding is short for bus replacement, school districts cannot use money from the Transportation Fund or the General Fund.  When school districts ask for additional money via a levy, it must be approved by the DLGF. A public hearing must be held and a plan outlining acquisition must be voted on by the school board. A detailed plan must be presented to the DLGF if districts need additional buses or choose to replace a bus prior to its 12-year cycle.

The formula to determine the amount of a levy increase will allow for annual growth of 6%, except in 2012 which will cap at 2.9%. The initial cap for next budget year (2012) is what most districts may struggle with. (School district budgets generally follow calendar years.)

Schools can get additional money than needed for five years in advance of a replacement. This will help districts, who choose, to offset any necessary budget cuts.