MEMORANDUM
TO: All Political Subdivisions
FROM: Micah G. Vincent,
Commissioner
RE: Transfer of Funds to
Rainy Day Funds
DATE: June 19, 2013
On April 29, 2013, Governor Mike Pence signed
into law House Enrolled Act 1145. Section 1, effective July 1, 2013, amends IC
36-1-8-5.1 to allow a political
subdivision to transfer at any time any unused and unencumbered CAGIT,
COIT, CEDIT or general or special tax levy supported funds from any fiscal year
to its rainy day fund. Moreover, a political subdivision can transfer to its
rainy day fund unobligated cash balances from other funds provided that the
amount of the transfer is not more than 10% of the political subdivision’s total
annual budget for that fiscal year and the amount of the transfer is authorized
by and identified in an ordinance or resolution.
On May 11, 2013, Governor Pence signed into law
House Enrolled Act 1545. Section 71, effective July 1, 2013, amends IC
36-1-8-5.1 such that a transfer made to a rainy day fund cannot be made from a
debt service fund.
Please note that this memorandum is intended to
be an informative bulletin; it is not a substitute for reading the law.
Questions may be directed to Staff Attorney Mike Duffy at (317) 233-9219 or mduffy@dlgf.in.gov.
