There’s a new version of what Indiana state lawmakers may be willing to do to save the jobs of teachers.

The latest legislative proposal to provide school funding flexibility was laid on the table Thursday night.

The measure represents the latest glimmer of hope for school districts that want to minimize or avoid layoffs.

“School funding will help,” said Ind. Rep. Thomas Dermody, (R) Laporte. “Obviously, the state cut $300-million, this would free up about 80-million dollars.”

The proposal could free up an estimated $1.7 million in extra spending cash for the South Bend Community School Corporation according to legislative estimates. School City of Mishawaka could see an additional $269,620, while the Penn-Harris-Madison School Corporation could have access to an additional $697,672.

“It will make a limited difference in helping schools cope with this serious situation they’ve been faced with,” said Dan Clark of the Indiana State Teacher’s Association.

The proposal would allow districts to use money from their Capital Projects funds to pay for programs and salaries.

“And we structured an amount so they would get up to five percent of the capital projects fund as a flexible amount to use for instruction to keep teachers on the job,” said Ind. Sen. Luke Kenley, (R) Noblesville, a member of the conference committee on H.B. 1367.

The transfer could climb to 10-percent provided that the cash—normally restricted to building projects—was used for pay roll and not pay raises.

“If you chose the larger amount then you are not allowed to use that money for general salary increases, but you may use it for any other purpose in the general fund,” said Dan Clark.

The proposal does allow teachers to receive an incremental pay adjustment provided there is a contract in place in March of 2010.

“The compromise, I think would have helped probably about 50-percent of the schools I have (in my district),” said Ind. Rep. Bill Ruppel, (R) North Manchester. “I’ve got three that are going to be very good with those proposals and help them out, the other four they’re going to struggle.”

The proposal did not progress fast enough to be considered by legislators on Thursday night, so the measure won’t have a chance to advance until next week—at the earliest.