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 7167 NOTE PREPARED: Jan 4, 2022
BILL NUMBER: HB 1252 BILL AMENDED:
SUBJECT: Education Enrichment Accounts.
FIRST AUTHOR: Rep. Behning BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: This bill defines an "enrichment student" as an individual who: (1) has legal
settlement in Indiana; (2) was a student in grades 3 through 8 during the 2021-2022 school year; and (3)
scored either "below proficiency" or "approaching proficiency" on the statewide assessment Indiana Learning
Evaluation Readiness Network (ILEARN) program, administered during the 2021-2022 school year. It
establishes the Indiana Student Enrichment Grant Program. It provides that an enrichment student is eligible
to establish an Indiana Enrichment Scholarship Account. It provides that an enrichment student may receive
$1,000 to be used for certain qualified expenses. It establishes the Student Enrichment Grant Fund. It also
provides that the Department of Education shall administer the program and Student Enrichment Grant Fund.
Effective Date: Upon passage.
Explanation of State Expenditures: This bill creates the Indiana Student Enrichment Grant Program which
establishes the Enrichment Grant Fund and allows parents of an enrichment student, beginning September
1, 2022, to create an Indiana Enrichment Scholarship Account. Each enrichment student may be provided
with a one-time grant of $500, or a one-time grant of $750 if the student's school also provides a grant to the
student of $250 (meaning the student will receive a total of $1,000). However, if there is not enough funding
available to provide all enrichment students with their qualifying grant amount, the Department of Education
(DOE) must determine the number of grants to be awarded based on the availability of funds.
During the 2020-2021 school year, a total of 345,762 students in grades 3 through 8 scored either
"approaching proficiency" or "below proficiency" in either math or ELA on the Indiana Learning Evaluation
Readiness Network (ILEARN) assessment. Applying these grant amounts to the ILEARN results from the
2020-2021 school year, in order to provide each enrichment student with the full grant amount for which they
HB 1252 1 would qualify, this bill is estimated to increase state expenditures between $172.9 M (if all enrichment
students received a $500 grant) and $259.3 M (if all enrichment students received a $750 grant) in FY 2023.
The actual cost of this program will depend upon the number of students enrolled in Indiana public schools,
the number of students that score either "approaching proficiency" or "below proficiency" on the ILEARN
assessment during the 2021-2022 school year, and the percentage of those students whose parents actually
open an account.
The fund may consist of:
•Funds from the DOE, including federal ESSER funds;
•Interest earned from investment of money in the fund;
•Donations, gifts, and matching funds from schools; and
•Any other source, including transfers from other funds or accounts.
This bill requires the DOE to administer the program and the fund, and permits the DOE to contract with
external entities to maintain and manage accounts. Duties prescribed to the DOE include:
•Determining the number of grants to be awarded based on the availability of funds;
•Establishing fund fees;
•Creating and posting on their website a form for parents to use in order to create an account;
•Providing parents of enrichment students with a written explanation of the authorized uses of money
and their responsibilities regarding their account;
•Freezing or terminating an account as prescribed in this bill;
•Reviewing and making a determination on appeals filed in response to the freezing or termination
of an account;
•Prescribing the manner in which an individual or an entity may become a participating entity (an
entity approved to provide an enrichment student with a qualified expense);
•Approving, and revoking when applicable, the status of participating entities; and
•Posting on their website an annual list of all participating entities.
Any cost associated with the DOE contracting with external entities to maintain and manage the accounts
will depend on actions of the agency. Furthermore, this bill’s requirements represent an additional workload
[and/or expenditure] on the DOE outside of the agency’s routine administrative functions, and existing
staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation.
The additional funds and resources required could be supplied through existing staff and resources currently
being used in another program or with new appropriations. Ultimately, the source of funds and resources
required to satisfy the requirements of this bill will depend on legislative and administrative actions.
The Treasurer of State must invest money in the fund in the same manner as other public money. Also, the
State Board of Education may adopt rules, including emergency rules, relating to the creation of the program.
These requirements are within the routine administrative functions of both agencies and should be able to
be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels.
Additional Information: An enrichment student is defined as a student with legal settlement in Indiana, in
grades 3 through 8 during the 2021-2022 school year, and who scored either "below proficiency" or
"approaching proficiency" on the ILEARN assessment during the 2021-2022 school year. During the
2020-2021 school year, 138,391 (28.6%) from a total of 484,153 students in grades 3 through 8 who took
the ILEARN assessment scored "proficient" or higher in both math and ELA.
HB 1252 2 The DOE may send a notice to the Attorney General or the prosecuting attorney for a county if the DOE
believes a crime has been committed, or a civil action is necessary, relating to an enrichment student’s
account.
Grant funds may only be used for qualifying expenses, as defined in this bill. All funds used for qualifying
expenses are tax exempt.
Money in the fund at the end of a state fiscal year does not revert back to the General Fund.
When an enrichment student's account is terminated, all money in the account will revert back into the fund.
An enrichment student account will be terminated on the earliest date of either:
•The date the student no longer resides in Indiana;
•August 1 of the calendar year the student receives a "proficient" or higher score on the ILEARN
assessment; or
•October 1, 2024.
Explanation of State Revenues:
Explanation of Local Expenditures: School corporations may opt to provide enrichment students with a
$250 matching grant (which is in addition to the grant funding provided by the state). Any expenditure
related to matching grants will depend on local action.
Explanation of Local Revenues:
State Agencies Affected: Department of Education; Treasurer of State; State Board of Education; Attorney
General.
Local Agencies Affected: School corporations; County Prosecutor's Offices.
Information Sources: Indiana Department of Education: 2021 ILEARN Grade 3-8 Statewide Summary
Results.
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1252 3