1.  Financial Moment November 2013

2. Beginning with 2010 tax bills, property owners have been entitled to a circuit breaker cap on the amount of property taxes over:  1% of homestead properties;  2% of residential properties;  2% of agricultural land;  2% of long-term care facilities;  3% of nonresidential properties; and  3% of personal property. (In 2009, the circuit breaker caps were 1.5%, 2.5% and 3.5%.) Taken from the Indiana Circuit Breaker Fact Sheet

3. Tax levies are collected by:  counties;  townships;  cities and towns;  school corporations;  library districts; and  other special districts to provide services. Taken from the Indiana Circuit Breaker Fact Sheet

4. Example: Homestead valued at $300,000 Tax liability: $5100 1% circuit breaker cap: $3000 Taxpayer receives circuit breaker credit of $2100

5.  HEA 1072 created the “protected taxes” concept and worsened the impact of the tax caps on schools  Protected taxes meant that debt service funds had to be met first at the expense of other funds  SEA 517 was introduced to allow school corporations to flexibly allocate circuit breaker losses across funds

6. Previous Law Without Protected Levies Current Law with Protected Levies CorpFund NameLevy Circuit Breaker % of Levy Lost Circuit Breaker % of Levy Lost Gary Community School CorpTotal28,951,11313,071,51545.20%13,071,51545.20% Muncie Community School CorpTotal19,970,8938,746,13343.80%8,746,13443.80%

7. Previous Law Without Protected Levies Current Law with Protected Levies CorpFund NameLevy Circuit Breaker % of Levy Lost Circuit Breaker % of Levy Lost Franklin Township School CorpTotal44,311,83517,053,97138.50%17,053,97338.50% Lost 100% of the Transportation, Bus Replacement, and Capital Projects dollars Beech Grove City School CorpTotal8,138,3632,708,08133.30%2,708,07933.30% Lost 100% of the Transportation, Bus Replacement, and Capital Projects dollars Cannelton City School CorpTotal641,649228,68635.60%228,68635.60% Lost 100% of the Transportation, Bus Replacement, and Capital Projects dollars

8. Previous Law Without Protected Levies Current Law with Protected Levies CorpFund NameLevyCircuit Breaker% of Levy LostCircuit Breaker% of Levy Lost Boone Township School CorpTotal4,093,707466,57211.40%466,57211.40% Duneland School CorpTotal26,772,5961,031,9083.90%1,031,9103.90% East Porter County School CorpTotal8,435,55459,3060.70%59,3060.70% Portage Township School CorpTotal17,113,9811,406,3898.20%1,406,3918.20% Union Township School CorpTotal4,633,3421,4000.00%1,4000.00% Valparaiso Community School CorpTotal19,476,9151,467,8317.50%1,467,8327.50%

9. Previous Law Without Protected Levies Current Law with Protected Levies CorpFund NameLevy Circuit Breaker% of Levy Lost Circuit Breaker% of Levy Lost Porter Twp. School CorpDebt Service2,816,2239960.00%0 Porter Twp. School CorpPension Debt112,354400.00%0 Porter Twp. School Corp Capital Projects (School)1,120,3193960.00%9150.10% Porter Twp. School Corp 2013 State GF Loan Repayment53,414190.00%0 Porter Twp. School Corp Transportatio n1,113,4123940.00%9090.10% Porter Twp. School Corp Bus Replacement44,665160.00%360.10% Total 5,260,3871,8610.00%1,8600.00%

10.  Continues to impact more districts  Forecast is that eventually all districts will be significantly impacted  Need to continue to talk to lawmakers