Sec. 3. (a) It is unlawful for a school employer to enter into any agreement that would place the employer in a position of deficit financing due to a reduction in the employer's actual general fund (before January 1, 2019) or education fund (after December 31, 2018) revenue or an increase in the employer's expenditures when the expenditures exceed the employer's current year actual general fund (before January 1, 2019) or education fund (after December 31, 2018) revenue. Except as provided in subsection (c), revenue does not include money estimated to be or actually transferred from the school corporation's operations fund to its education fund.

(b) A contract that provides for deficit financing is void to that extent, and an individual teacher's contract executed under the contract is void to that extent.

(c) Notwithstanding subsection (a), before September 15 of any year, a governing body may pass a one (1) year resolution indicating that a portion or percentage of money transferred from the operations fund to the education fund may be considered education fund revenue for purposes of funding a contract under this chapter and to determine whether an agreement would place the employer in a position of deficit financing. The resolution shall expire within one (1) year of the resolution's adoption by the governing body.

[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-7.5-1-3.]

As added by P.L.1-2005, SEC.13. Amended by P.L.48-2011, SEC.13; P.L.244-2017, SEC.56; P.L.254-2019, SEC.2.