The purpose of this study was to determine if a set of twelve financial ratios developed from revenue and expenditure characteristics of Indiana public school corporations in 1998, 1999, and 2000 could forecast a district's financial condition in 2001 and 2002. The study was limited to the statutory general fund which finances a district's day-to-day instructional expenditures. A district's financial status was determined by computing a composite financial status ratio (CFSR) using the district's annual net revenues and expenditures for 2001 and 2002. The relationship of twelve independent variables was examined with the CFSR continuum using multiple linear regression analyses. The population of the study included 286 of the 293 public school corporations in Indiana. The findings of the study found: (1) 94.4 percent of Indiana's public school corporations were considered non-financially distressed and 5.6 percent were considered financially distressed; (2) four independent variables were identified as significant and practical predictors of a district's financial condition: annual spending, December 31st encumbered cash balance, biannual spending, and annual expenditures/ADM ratios; (3) three independent variables were significant; however, the variables were not considered functional predictors of a district's financial condition: personnel/annual expenditure, certified instruction/personnel expenditure, and local property tax/annual revenue; and (4) four independent variables were not significant and were unable to predict a school district's financial condition: December 31S` net cash balance, employee benefit/annual expenditure, student growth, and school size impact factor ratios. The conclusions indicate: (1) financial ratios can be utilized by administrators to forecast a district's financial condition; (2) several financial ratios capable of forecasting a district's financial condition are under the management control of administrators; (3) financial ratios vary in the period of time they are capable of predicting a district's financial condition; (4) all statistically significant financial ratios may not be consistent predictors of a district's financial condition; (5) not all financial ratios serve as predictors of a district's financial condition even though the ratios provide important financial information; and (6) combined multiple year financial data, in addition to single year data, can be utilized to enhance the model's ability to predict a district's financial condition. / Department of Educational Leadership

The major purpose of the study was to determine if relationships existed between selected variables related to the preparation of public school bond offerings for bid and net interest rates and number of bids received by Indiana public school building corporations.The population for the study was defined as Indiana public school building corporations which market first mortgage revenue bonds during any calendar year that existing or comparable legal and bond market conditions may apply.The sample for the study was comprised of 23 Indiana building bonds during the calendar year 1970. Data for the study were obtained through responses of 20 school corporations to a Basic Bond Data Instrument.Seventeen variables were selected from a literature review that have been held as important for receiving favorable school bond interest rates. The following procedures were applied:1. A correlation matrix was computed to determine if significant correlations did, in fact,exist among the seventeen selected experimental variables.2. Step-wise multiple regression analyses were conducted using number of bids and interest rate alternatively as dependent variables. The purpose was to determine the independent variables that served as best predictors for the number of bids and the net interest rate for a bond issue.Major findings permitted the following conclusions to be drawn:The study did not support the notion that effective net interest rates are affected significantly by selected administrative practices classified into five experimental variable categories as legal services, financial planning, prospectus, publicity and notice of bond sale and actual bond sale. Ratings received from Moody's Investors Service, Inc., and Standard and Poor Corporation are not reliable predictors of net interest rates on school bond issues.Lower effective net interest rates can be obtained by keeping the length of bond issue to a minimum number of years.A lower effective net interest rate may likely be obtained by offering bonds for sale during the last quarter of the calendar year. The size of the sample studied restricted the evidence.Amount of previous debt obligation is a strong predictor of effective bond interest rate to be received on a subsequent issue. That is, the lower the level of prior debt, the lower interest rate that may likely be received on a new issue.6. Amount of issue is a strong predictor of the number of bids that may be anticipated for a given bond offering.7. Ratings received by Moody's Investors Service, Inc., are reliable predictors of number of bids to be received. Higher ratings tend to create more interest by bidders.8. Date of issue is a reliable predictor of number of bids. Although the evidence with regard to the best period during the year to sell was not conclusive, the data for 1970 revealed a tendency for a larger number of bids to be received by school building corporations marketing bonds after the first 90 days of the year, that is, after April 1.Recommendations for further study:1. The study should be replicated covering at least a two year period to determine if predictors identified in the study continue to be predictors and remain somewhat consistent with respect to predictability. 2. A similar study should be conducted including neighboring states in the sample to determine if the predictors derived for Indiana bond interest rates and number of bids received remain somewhat consistent across state lines.3. A national study should be conducted which could randomly sample school districts throughout the nation, using variables identified from the study, to determine the best set of predictors for achieving lower effective bond interest rates and a higher number of bidders.3

The purpose of the study was to analyze the impact of the financial assistance for textbooks and related instructional materials portion of Public Law No. 390 (1987) on textbook rental programs in public school corporations across Indiana. The results of the analysis were compared with data from the financial assistance program prescribed in Public Law No. 209 (1979). The Indiana Department of Education's Textbook Cost Survey was designed to collect financial information about textbook rental programs for the school years 1984-85 through 1986-87 when P.L. 209 was in effect. A questionnaire, modeled after the Textbook Cost Survey, was developed to collect similar information for the school year 1987-88 when P.L. 390 came into effect. This survey was sent to the 209 school corporation that had responded to the Department of Education survey. Percentage distributions and mean per pupil financial data were ascertained for the data obtained from the two instruments. Based on information gained from the study, a comparative analysis of the impact of Public Laws 209 and 390 on Indiana textbook rental programs was made.Data collected supported the following conclusions:1. Because Indiana law requires the adoption of some new textbooks each year, mean per pupil textbook rental billings will continue to increase annually, as mean per pupil textbook rental billings did from 1984-85 through 1987-88, the four years included in this study.2. The overall percentage of mean per pupil textbook rental billings collected each year from parent/guardians or emancipated minors will continue to decrease as did the overall percentage of mean per pupil textbook rental billings collected during the four years (1984-1988) included in the study.3.Because of the inclusion of standardized financial eligibility criteria and allocation of sufficient funding for total reimbursement of eligible financial assistance billings from individual school corporations, the financial assistance portion of P.L. 390 is an improvement over P.L. 209.4. Because of the specific delineation of textbook rental fee components eligible for financial assistance reimbursement under P.L. 390, implementation of the law brought about changes in the components some school corporations included in textbook rental billings.5. In an attempt to make up some of the difference between actual textbook rental billings and eligible financial assistance billings sent to the Department of Education for reimbursement, an increasing percentage of school corporations switched from annual recovery of 20 percent of textbook costs to annual recovery of 25 percent of costs after implementation of P.L. 390.6. School corporations who ask parent/guardians or emancipated minors approved for financial assistance to pay the difference between the actual amount of textbook rental billings and the amount of financial assistance reimbursement received from the state face a difficult public relations situation.7. The data from 1987-88 appear to indicate P.L. 390 has had a positive impact on the mean per pupil amounts of unpaid textbook rental billings pursued for collection.8. The mean per pupil costs for pursuing collection of unpaid textbook rental billings through small claims court or other collection methods are not truly representative of actual costs because personnel costs were frequently omitted.9. Textbook rental funds which are, theoretically, designed to be self-supporting cannot continuously absorb the loss of income resulting from exclusion of some components normally included in textbook rental billings from financial assistance reimbursement, exclusion of students qualifying after November 1 each year from financial assistance reimbursement, and reimbursement at a different percentage of costs than the percentage normally charged in textbook rental billings.10. After implementation of the financial assistance portion of P.L. 390, those school corporations who indicated expenditures for components normally included in textbook rental billings but excluded from financial assistance reimbursement would be paid from the general fund, or who indicated the general fund would be used to reimburse textbook rental funds for the losses of income incurred through implementation of P.L. 390 have provided only a temporary solution.

The purpose of the study was to analyze current procedures utilized for financing textbooks and related instructional materials by Indiana public school corporations and public school corporations in selected states. Respective practices were examined in order to determine feasible methods/alternatives for Indiana school corporations to use in overcoming the contemporary financial and administrative dilemma which existed in the 1985-86 school year.A descriptive questionnaire was developed from a review of literature and with the assistance of colleagues. Data obtained by the instrument were analyzed using frequency tabulations and percentages. Based on information gained from the study and data collected in superintendents in Indiana, solutions to financing instructional materials for Indiana school corporations were determined.Data collected supported the following conclusions: 1. Public school corporations in Indiana charge fees for textbooks and related instructional materials and are experiencing difficulties in collecting textbook rental and related fees from parents or guardians of school children.2. The use of small claims court for recovering fees is not an effective method for most public school corporations in Indiana.3. Township trustees and/or county councils should pay for textbooks and instructional materials of students whose parents or guardians are declared by the courts to be indigent.4. The current formula for determining textbook rental rates is satisfactory.5. Legislation should be adopted to permit public school corporations to increase revenue in order to finance textbooks and related instructional materials.6. To be in concert with other states in the United States and more specifically within the Great Lakes Region, public school students should be supplied textbooks and related instructional materials without charge.7. The location and size of school corporations have implications to problems existing in public school corporations when administering textbook rental programs.8. Lack of additional finance has restricted public school corporations in implementing new programs to be funded by the general fund budget.9. Based on the average rankings of ten regions, public school corporations in Regions I, II, and VI encountered the greatest difficulty in financing textbooks and related instructional materials. Public school corporations have the least problems in supplying textbooks to school students.10. Based on the average rankings of six enrollment groups, public school corporations in the smallest three groups had the greatest success in financing textbooks and related instructional materials for students.11. Additional costs for school corporations are incurred when interest is paid to publishers for overdue accounts or for installment payment programs.12. School corporations with deficit balances or significantly decreasing balances in textbook rental accounts are in. need of assistance in collecting outstanding fees from constituents and/or means of generating sufficient revenue to account for required textbooks and related instructional materials for students.

The purpose of the study was to identify significant predictors for two selected dependent variables, (1) net interest cost and (2) number of bids, for Indiana public school building corporation first mortgage revenue bond issues.All Indiana public school building corporations marketing first mortgage revenue bonds during any calendar year that existing or comparable legal and bond market conditions applied constituted the population of the study.The sample consisted of 131 Indiana public school building corporations which issued bonds during the calendar years, 1970 through 1974. Data were obtained through responses by officials of 113 school corporations to the Bond Issue Data Instrument.Eighteen independent variables, identified from the literature as important for receiving favorable net interest costs and a higher number of bids, were selected. A backward stepwise multiple regression analysis was used to determine the independent variables that served as best predictors for net interest cost. The analysis was repeated substituting number of bids as the dependent variable.The following conclusions were generated from the data analyses:1. National weekly bond average interest cost is the strongest predictor of net interest cost. National bond market declines generally predict lower net interest costs.2. Lower net interest costs can be obtained by minimizing length of bond issue.3. Indebtedness ratio is a strong predictor of net interest cost. Generally, a lower net interest cost can be expected as indebtedness ratio decreases.4. Date of issue is a significant predictor of net interest cost. Generally, the higher number of Julian days, the higher the interest rate. Conclusive evidence identifying any quarter of the year as the best time to market bonds was absent.5. Type of issue, new or refunded, is a strong predictor of number of bids for a given bond issue. Generally, more bids can be expected for new issues.6. National weekly bond average interest cost is a strong predictor of number of bids. Generally, a declining national average indicates a larger number of bids.7. Ratings by more than one rating company cannot be expected to attract more bidders.8. Net interest cost and number of bids are not affected significantly by administrative practices such as employing bond counsel, outside consultants to prepare prospectus, and financial counsel and the amount or kind of advertising of the bond issue.Recommendations for school officials involved in the process of marketing a school bond issue and for further study were as follows:1. School administrators should analyze economic trends likely to affect national weekly bond averages. Such factors include: (1) bond and stock market fluctuations, (2) actions by the United States Treasury and Federal Reserve Board with respect to governmental fiscal and monetary policy, and (3) international balance of payments.2. Because the length of term has been identified as an important predictor of net interest cost consideration should be given to developing an extensive public relations program which emphasizes the advantages of the shorter term bond issue. Where feasible the term should be 20 years or less.3. Because the ratio of gross bonded indebtedness to local assessed valuation has been identified as an important predictor of net interest cost consideration should be given to reducing the existing indebtedness of the school corporation. Where feasible, the debt ratio should not exceed the 20-25 per cent range for favorable interest costs.4. School administrators should assume more responsibility in preparing the prospectus, in the financial planning, and in obtaining the bond rating.5. The study should be replicated every two years to determine if the predictors identified in this study remain consistent with respect to predictability. The data base could be enlarged to include all public school building corporations marketing bonds for the calendar years 1970 through the most recent year data were available.6. A national study should be conducted which could randomly sample school districts throughout the nation, using variables selected from the study, with appropriate adjustments, to determine the strongest national predictor variables of lower net interest cost.7. A study should be conducted which would provide a handbook to assist Indiana school districts in marketing bond issues.

Nontraditional revenue is the term used to describe sources of funding other than those provided by federal and state support, including grants, and those provided by local property tax levies. Examples included licensing agreements, advertising in school facilities and on school property, school business partnerships, booster clubs, education foundations, and user fees. The purpose of this study was (1) to identify the sources of nontraditional revenue used by Indiana school corporations and Indiana high schools, (2) to assess local school officials' attitudes and expectations regarding the use of nontraditional revenue, and (3) to provide some insight as to how Indiana school corporations and schools utilize those funds.A QUAN-Qual Model was used for this study. The QUAN-Qual Model enabled the researcher to conduct the study in two phases. The first phase was comprised of a survey instrument used to identify the kinds of nontraditional revenue being used and to collect data regarding the amounts of nontraditional revenue being generated. The instrument was also used to measure attitudes towards nontraditional revenue and the perceived importance of those funds. The second phase was comprised of qualitative data collection through telephone interviews with school corporation and high school administrators conducted in February and March 2006. Analysis and interpretation of that data provided additional information about attitudes towards nontraditional revenue and how those funds are used.All Indiana school corporations and high schools that were included in the study utilized nontraditional revenue sources to varying degrees. They supplemented traditional funding with licensing agreements, school-business partnerships, booster clubs, education foundations, individual donations, and user fees. Nontraditional sources of revenue were identified as being essential for supporting some activities and programs. However, the researcher's sampling of corporation level administrators' and high school principals' attitudes regarding that revenue suggested that neither group relied on it to provide for essential personnel or programs. Statistically significant data suggest that school corporations and schools located in rural settings might be at a disadvantage with respect to their capacity to generate nontraditional revenue. / Department of Educational Leadership

For the past several decades, school districts have faced an increase in challenges which include trying to improve student achievement with restricted or reduced educational funds. Schools are faced with attempting to fill in financial gaps with funds derived from non-traditional sources with help from partners, including public education foundations. The purpose of this study was to determine the following: (1) The goals established by Indiana public education foundations, (2) whether these public education foundations have been able to achieve their goals, and (3) how the public education foundations successfully secure funding to support their K-12 public schools. The researcher employed a two-phase, explanatory mixed-methods research design (QUAN-Qual Model). The model uses an initial quantitative study to establish a baseline of knowledge about the subject and follows up with a qualitative study to gain a deeper insight into the quantitative results. The first phase involved analyzing the results of a questionnaire administered as part of the study. The researcher used the membership of the Indiana Association of Public Education Foundations (INAPEF) for the accessible population. Current membership includes sixty-six foundations. The final data analysis consisted of descriptive statistics, Pearson correlations, analysis of covariance, and regression analysis to identify significant or interesting relationships between variables. The second phase of the study engaged three education foundations in a case study review. The purpose of this qualitative study was to provide deeper insight into foundation goals and level of support to schools from the perspective of public education foundation officials. A majority of the foundation officials that were surveyed believe that school foundations in Indiana have been effective in supporting the educational programs in their school districts. Foundation officials believe that they are able to provide positive support to schools mostly through district initiatives, classroom grants, and community involvement. The results of this research may provide public schools with the impetus to create public education foundations to support their programs or determine how to improve upon their current foundation’s support. / Department of Educational Leadership

The major intent of the investigation was to determine the existing level of cost differentials for selected education program categories in the state of Indiana. The categories of prekindergarten and kindergarten, grades one through six, grades seven through-twelve, mentally handicapped, physically handicapped, compensatory and vocational education were selected as program categories for study. Secondary concerns were to describe the patterns of 1971-72 public school funding for the state of Indiana by government level and to recommend a new concept for distribution of state funds to Indiana local schools based on the developed program cost differentials.Sources of revenue were taken from Report of Statistical Information for Indiana School Corporations 1971-72 School Year for the 1967-68, 1968-69, 1969-70, 1970-71, 1971-72 school years. Percentages as to major categories of revenue were computed for the above years.The Education Cost Differential Basic Data Instrument was developed for collecting data to achieve the major purpose of the study. Seventy-four Indiana school corporations were sampled from a population of all Indiana reorganized school corporations which had grade organizational patterns of 6-6, 6-2-4, or 6-3-3 for the school year 1971-72. Eighteen responded with timely usable data. State cost differentials for each program were computed by dividing reported net current operating expenditures for each program area by total full time equivalent pupils in ADM for the program. State cost differentials were computed by dividing the average cost per full time equivalent pupil in ADM for each program by the cost per pupil for the basic program, grades one through six.Conclusions of the study included:1. The major fiscal support for public school corporations in Indiana is provided from localsources.2. Percentage of the total revenue from local sources has constantly increased for the public school systems from July 1, 1967 through June 30, 1972.3. The Indiana General Assembly has not provided fiscal support commensurate with the rising costs of public education.4. Federal support as a percentage of total fiscal support of public education in Indiana is below the national average.5. Elementary programs, grades one through six, have the lowest net current operating expenditure and were assigned a cost differential index of 1.000.6. Secondary programs, grades seven through twelve, represent the second lowest net current operating expenditure with a cost differential index of 1.095.7, The cost differential index for vocational education programs is 1.256.8. Prekindergarten and kindergarten have a cost differential index of 1.271.9. The cost differential index for compensatory education is 1.633.10. Mentally handicapped programs have a computed cost differential index of 2.559.11. The cost differential index for physically handicapped programs is 2,821.In comparing Indiana cost differential indices with cost differential indices developed in similar studies but different populations, the vocational index of 1.256 is indefensibly lower and, therefore, questioned. Only five of the 18 respondents supplying data may account for the variation.The Indiana General Assembly should enact legislation which would provide a distribution formula for state aid to local school districts which weights per pupil allocations based upon program cost indices. The weighted pupil concept could be effectively employed to determine state allocations by multiplying the number of weighted pupils in ADM by a uniform dollar allotment for pupils with an index of 1.000. The cost of the state guaranteed program, to avoid built-in inequities, should be defined as net current operating expenditures.

This study described and analyzed the experiences of administrators in six Indiana school corporations that adopted a school-year budget under authorization provided by Public Law 50 (PL 50-1996). The study had the following objectives: (a) to identify reasons why school corporations became involved in the pilot project, (b) to determine what happened as a result of the pilot project, (c) to determine if the pilot project was perceived as successful by the school officials in the pilot group, and (d) to identify recommendations of superintendents and business officials about further use of a fiscal year budget in Indiana school corporations. A qualitative research methodology was used in this study. Data collection consisted of interviews with superintendents and business officials in the pilot group during January 2000.The administrators joined the pilot group because they believed all Indiana school corporations would eventually convert to a fiscal year budget and that their experiences would facilitate the conversion. They supported the concept of a fiscal year budget because it was congruous with the school-year. During implementation of the fiscal year budget, the administrators felt abandoned and did not receive the support they expected. Yet, based on their experiences with a fiscal year budget, the administrators supported a conversion to a fiscal year budget for all school corporations. Administrators recommended the state phase-in a fiscal year budget for other non-pilot school corporations.These findings suggest that administrators had valid reasons for joining the pilot group. In addition, administrators viewed the absence of key leaders at the state level as problematic for the pilot project. Based on the evidence, it appears that a fiscal year budget produced the following advantages for the participating corporation administrators: (a) allowed for better tracking of expenditures, (b) required less work to determine the cost of a school-year program, (c) allowed for more freedom in the summer, and (d) provided for a less stressful year-end. The success of the pilot group did not produce support for fiscal year budgets from either non-pilot school corporation officials or from state officials. Recommendations for piloting policy change and for further study on fiscal year budgets are included. / Department of Educational Leadership