Umbaugh It's all about experience

(888) 516 9594

2019 School Budget Planning:  A Transitionary Time

By Brock J. Bowsher, Manager, June 14, 2018

It’s that time again. School corporations across Indiana need to start developing 2019 school budgets.

Budget preparation can be a laborious and time-consuming process, but adding to the already complicated process for 2019 are the fund changes effective January 1, 2019. School boards will adopt 2019 budgets with two new funds: Education Fund and Operations Fund.  School budgets will no longer prepare general, capital projects, transportation, bus replacement (in addition to, if applicable:  historical society, racial balance and art association, public playground) funds budgets.  The Education Fund is to be used exclusively to pay expenses allocated to student instruction and learning. The Operations Fund will be used to track non-academic and non-debt expenses.  School corporations will continue to use existing debt funds to prepare 2019 budgets.  

One of the first steps school boards will take is to pass resolutions establishing the new Education and Operations Funds effective January 1, 2019.  Resolutions establishing these two new funds should be done no later than December 2018. 

As for specific 2019 budget preparation, budget forms are available through Gateway at  Slight revisions to the 2019 Budget Forms 2 and 4B reflect the transition to the new budgeted funds:

  • Budget Form 2 and the Current Year Financial Worksheet must be completed as if the Education and Operations Funds were in place for the second half of 2018.
  • Budget Form 2 also includes a new line item called “Other Revenue.” That line should reflect the amount school corporations intend to transfer from the Education Fund to the Operations Fund or vice versa. 
  • Form 4B includes an additional line item (Line 1a) labeled “School Transfer Out”, which  should be used to report the amount school corporations intend to transfer from the Education Fund to the Operations Fund or vice versa. 

School corporations will find that starting with a clearly defined budget plan for 2019 to prepare for the fund changes will lead to a smoother transition. If you would like additional information regarding these changes, please contact us at .(JavaScript must be enabled to view this email address).

Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at


Newsletter Sign-Up

To receive our Vision Newsletters please provide us with your email address: