LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington, Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6958 NOTE PREPARED: Feb 24, 2022 BILL NUMBER: HB 1093 BILL AMENDED: Feb 24, 2022 SUBJECT: Education Matters. FIRST AUTHOR: Rep. Behning BILL STATUS: CR Adopted - 2 nd House FIRST SPONSOR: Sen. Raatz FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: (Amended) Early Learning Advisory Committee: This bill amends the membership and duties of the Early Learning Advisory Committee. School Resource Officers: This bill makes changes to the definition of "school resource officer". It also provides that, after June 30, 2023, if a school corporation or charter school enters into a contract for a school resource officer, certain school corporations or charter schools must enter into a memorandum of understanding with the law enforcement agency that employs or appointed the law enforcement officer who will perform the duties of a school resource officer. Enrollment Incentives: This bill provides that certain parties are prohibited from incentivizing the enrollment, reenrollment, or continued attendance of a student or prospective student by offering or giving an item that has monetary value. It also provides that curricular materials and educational services are not considered enrollment incentives. Charter School Board Fund: This bill requires the Indiana Charter School Board (Board) to appoint an executive director to carry out the duties and daily operations of the Board. It establishes the executive director's duties. It provides that the Board shall establish certain processes. It establishes the Indiana Charter School Board Fund and provides that money in the fund is appropriated continuously for purposes of the Board. It also repeals a provision concerning staffing of the Board. Department of Education Changes: This bill provides that the Department of Education (DOE) may grant an accomplished practitioner's license under certain conditions. It provides that the instructional days tuition support distribution formula account for certain schools within a school corporation. It authorizes the DOE HB 1093 1 to study and, if recommended, use machine scoring. It also changes the DOE’s review period for certain funds. Statewide Assessment: This bill provides that, after a school receives statewide assessment score reports, a teacher of a student shall discuss the student's statewide assessment results with a parent at the next parent/teacher conference or, if the school does not hold parent/teacher conferences, send a notice to a parent of the student offering to meet with the parent to discuss the results. It also provides that the DOE may include in a contract entered into or renewed after June 30, 2022, with a statewide assessment vendor a requirement that the vendor provide a summary of a student's statewide assessment results that meets certain requirements. Budget Committee Review: This bill provides that, if the total amount of state tuition support that a school corporation receives or will receive during a school year decreases under the student instructional day reduction of tuition support provision by an amount that is equal to or more than $250,000 from the amount the school corporation would otherwise be eligible to receive during the school year, the Budget Committee shall review the amount of and the reason for the decrease before the implementation of the decrease. It provides that, if an adjustment by the State Board of Education (SBOE) of the count of enrolled eligible pupils for one or more school corporations would increase or decrease the total distribution of state tuition support in an amount that is equal to or more than $250,000, the adjustment must be reviewed by the Budget Committee before the SBOE may adjust the enrollment count. It also provides that, if the SBOE determines that extreme patterns of certain conditions on the count day or the subsequent adjustment date cause the enrollment to be unrepresentative of the enrollment of one or more school corporations by a count of eligible pupils that would increase or decrease the total distribution of state tuition support in an amount that is equal to or more than $250,000 as a result of changing the count day, the SBOE may designate another day for determining the enrollment of the one or more school corporations after review by the Budget Committee. (Current law allows the SBOE to designate another day for determining a school corporation's enrollment if the SBOE determines that extreme patterns of certain conditions on the count day or the subsequent adjustment date cause the enrollment to be unrepresentative of the school corporation's enrollment.) School Letter Grades: This bill also provides that the SBOE shall assign to a school or school corporation (including adult high schools) a "null" or "no letter grade" for the 2021-2022 school year. Effective Date: July 1, 2021 (retroactive); April 1, 2022; July 1, 2022. Explanation of State Expenditures: Department of Education Changes: This bill modifies the calculation for determining the amount of a tuition support reduction issued to a school corporation for failing to conduct the minimum number of student instructional days during a school year. This change to calculating the tuition support reduction will lower the amount of tuition support that is reduced from a school corporation under this provision. Funds allocated to tuition support but not provided to schools will revert back to the state General Fund; however, any such reduction in reversions to the General Fund is expected to be minimal as only two schools in the past five school years have failed to meet the required number of student instructional days. The DOE and the Advisory Committee on Career and Technical Education must conduct a study regarding the use of machine scoring for the statewide assessment. This requirement is within the advisory committee's routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary staffing and resource levels. HB 1093 2 This bill modifies the criteria for the DOE in conferring specific teaching licenses. It also provides the DOE more time in compiling the Excessive Education Fund Transfer List each year, and more time to issue notices to the schools on the list. The various requirements of this bill add new duties to the DOE while also allowing the DOE more time to complete existing duties. Overall, these requirements are within the DOE's routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Early Learning Advisory Committee: Regarding the Early Learning Advisory Committee, this bill modifies the: •committee’s duties; •due date of the committee’s annual recommendations; •terms of committee members; and •membership of the committee. The committee’s membership is expanded from 6 members to 13 members, of which at least 2 must be state employees, 7 are appointed by the Governor, and 1 is appointed by each of the following: the Speaker of the House, the President Pro Tempore of the Senate, the House Minority Leader, and the Senate Minority Leader. Committee members are entitled to per diem, travel, and other expenses as prescribed in the bill. The Family and Social Services Administration (FSSA) must pay these costs for each committee meeting for all members who are not members of the General Assembly (members who are also members of the General Assembly will be paid from the Legislative Council or the Legislative Services Agency). This bill requires the committee to hold at least 6 meetings per calendar year. The term of any committee members appointed before April 1, 2022, expires on April 1, 2022. The Governor’s office, Speaker, President Pro Tempore, House Minority Leader, and Senate Minority Leader must appoint new members by July 1, 2022. Also, the DOE must provide the FSSA with consultation services regarding staffing the committee. These requirements are within the routine administrative functions of the FSSA, the DOE, the Governor, and the IGA, and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Charter School Board Fund: This bill establishes the Indiana Charter School Board Fund to fund the Indiana Charter School Board. The fund is administered by the Board and consists of administrative fees already received by the Board under current law. The fund does not revert to the state General Fund. This bill also requires the Board to appoint an Executive Director and prescribes the Executive Director’s duties. These requirements are within the Board’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. (Revised) Budget Committee Review: If either of the follow situations result in the total amount of state tuition support that a school corporation would receive during a school year either increasing or decreasing by $250,000 or more from the amount the school corporation would otherwise be eligible to receive during the school year, the Budget Committee must now review the amount of funding change and the reason for the change: HB 1093 3 •a tuition support reduction issued by the DOE to a school corporation for failing to conduct the minimum number of student instructional days during a school year; or •an adjustment by the State Board of Education (SBOE) of a school corporation's average daily membership (ADM) count or the school corporation's student count date for determining their ADM. Any such reviews conducted by the Budget Committee should be able to be conducted with no additional appropriations, assuming near customary staffing and resource levels. (Revised) Statewide Assessment: Beginning in FY 2023, any new or renewed contract with a vendor to conduct the statewide assessment may require the vendor to provide a summary of each student’s test results. The current assessment vendor, Cambium Assessment, already provides each student with an Individual Student Report, made available to the student via an online system. Continuing to include this deliverable in future contracts should have no impact on state expenditures. Additional Information: Department of Education Changes: Current law requires that the amount of tuition support deducted from a school corporation is based on a formula that takes into account the full tuition support provided to the school corporation, regardless of how many schools within the school corporation failed to meet the required number of student instructional days. This bill changes the tuition support reduction amount to be calculated based on only the school(s) in the school corporation that actually failed to meet the minimum number of student instructional days, and only for the grade(s) which the required number of days was not conducted. The advisory committee is chaired by the Secretary of Education and includes four Career and Technical Education directors. This bill permits, if the DOE and advisory committee recommend doing so, the utilization of machine scoring on the statewide assessment. School Letter Grades: This bill requires the SBOE to assign schools, school corporations, and adult high schools an accountability grade of "null" or "no letter grade" for the 2021-2022 school year and requires that the most recent ILEARN assessment results be included on a school’s website. School accountability grades have been held harmless since the 2018-2019 school year. Explanation of State Revenues: Explanation of Local Expenditures: School Resource Officers: Starting in FY 2024, if certain school corporations or charter schools enter into a contract with a local law enforcement agency for a school resource officer, the school must also enter into a Memorandum of Understanding (MOU) with the local law enforcement agency, as prescribed in this bill. Current law allows a school to enter into either a contract or an MOU, but it does not require both. This bill’s requirement is within the routine administrative functions of school corporations, charter schools, and local law enforcement agencies and should be able to be implemented with no additional appropriations, assuming near customary staffing and resource levels. Any impact resulting from this requirement will depend on local action. (Revised) Statewide Assessment: This bill requires teachers at school corporations and charter schools (schools) to meet with a student’s parent, or send a notice to the parent offering to meet with them, for all students in the school, to discuss the student’s assessment test results. Current law requires teachers to only meet with a student’s parent if the student did not receive a passing grade on the statewide assessment, or HB 1093 4 if a parent requests a meeting with the teacher. This bill also requires that, if applicable, schools must also provide the assessment test summary in addition to providing the assessment test scores to each student and the student’s parent. These requirements will result in an increase in meetings, but are within a school’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary staffing and resource levels. Additional Information: School Resource Officers: This bill allows a school resource officer to receive their 40 hours of required training within a specific amount of days after the officer is initially assigned to their duties. (Current law mandates the 40 hours of required training to be completed before the officer may be assigned to their duties.) This bill also modifies the definition of school resource officer to mean a law enforcement officer that provides law enforcement services during school hours, as described in the bill. Explanation of Local Revenues: Department of Education Changes: This bill modifies the calculation for determining the amount of a tuition support reduction issued to a school corporation for failing to conduct the minimum number of student instructional days during a school year. This change to calculating the tuition support reduction will lower the amount of tuition support that is reduced from a school corporation under this provision. The amount of any such reduction issued to a school will depend on how many grades within a school failed to meet the minimum number of student instructional days. State Agencies Affected: Governor’s Office; General Assembly; Department of Education; State Board of Education; Family and Social Services Administration. Local Agencies Affected: School corporations; Charter schools; Local law enforcement agencies. Information Sources: Department of Education data; Cambium Assessment: Online Reporting System User Guide 2021–2022. Fiscal Analyst: Jason Barrett, 317-232-9809. HB 1093 5