LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6427 NOTE PREPARED: Dec 9, 2021
BILL NUMBER: HB 1125 BILL AMENDED:
SUBJECT: Child Care Assistance Program Funding.
FIRST AUTHOR: Rep. Porter BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
XFEDERAL
Summary of Legislation: The bill provides that the State Board of Finance may transfer, assign, or reassign
any appropriation to the Office of the Secretary of Family and Social Services (FSSA) for the scholarship
program established to provide assistance to families for before school and after school care or early
childhood education known as the Build, Learn, Grow Scholarship Program.
Effective Date: Upon passage.
Explanation of State Expenditures: The bill will have indeterminate fiscal impact on the FSSA and its
programs based on the actions of the State Board of Finance in transferring funds and the amount made
available to the Build, Learn, Grow Scholarship Program.
Federal programs often require a state match or maintenance of effort (MOE) and moving FSSA funds from
the support of these federal programs to the Build, Learn, Grow Scholarship Program may require that the
FSSA replace current expenditures with existing expenditures for other qualifying programs (if available),
increasing cash benefits, establishing new programs, or through cash penalties, including reductions in
federal grants. In its current formation, the Build, Learn, Grow Scholarship Program awards grants to
children up to 12 years of age with a family member employed in an essential industry. The grants range from
20% to 80% of the cost of child care on a sliding scale based on the family’s income in comparison to the
federal poverty level. There is no cap on the eligible family income, which may disallow expenditures of the
Build, Learn, Grow Scholarship Program from counting toward state match or MOE.
Additional Information - The Build, Learn, Grow Scholarship Program was established with supplemental
child care funds of $101 M from the federal Coronavirus Response and Relief Supplemental Appropriations
HB 1125 1 Act. The FSSA estimates that the federal funding will be spent, and the program closed by the end of the
2022 school year. The scholarships are for early care and education, summer learning, or before and after
school care. The program has served 14,916 children with an average award of $2,019 per child. There are
1,524 child care or school age programs participating.
In FY 2021, the FSSA had state General Fund reversions of $57.5 M.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Child care facilities operated or sponsored by local units or entities may
have additional students or revenue.
State Agencies Affected: State Board of Finance; Office of the Secretary of Family and Social Services.
Local Agencies Affected: Child care facilities operated or sponsored by local units or entities.
Information Sources: Nicole Norvell, FSSA;
https://www.in.gov/fssa/files/FINAL-extension-press-release-BLG.pdf.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1125 2