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 6298 NOTE PREPARED: Jan 27, 2022
BILL NUMBER: SB 89 BILL AMENDED:
SUBJECT: Higher Education Scholarships.
FIRST AUTHOR: Sen. Rogers BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides that the Commission for Higher Education's (CHE) annual
schedule of awards must provide award amounts on the basis of a federal needs calculation. It amends
language concerning teacher stipends to teacher scholarships. It also provides that the total amount of
scholarships or other financial aid received by an individual may not exceed certain total expenses.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Summary - Switching from teacher stipends to teacher scholarships
will simplify program administration and reduce workload for CHE. The bill does not change the state
General Fund appropriation for the Frank O’Bannon Grant or for teacher scholarships, and it should not
impact overall expenditures for the two financial aid programs.
Additional Information - Under current law, the teacher stipends are paid directly to the students and require
CHE to use state vendor forms. Changing to a scholarship allows CHE to make the awards through the
financial aid process–a process that is less labor intensive than the current stipend system. Under the state
financial aid process, scholarships and grants are paid directly to the college or university on behalf of the
student.
The bill changes the following teacher stipend programs to scholarships: the Earline S. Rogers Student
Teaching Stipend for Minorities and the Student Teaching Stipend for High-Need Fields. Both stipends
provide up to $4,000 to pay for living expenses for students completing their student teaching. The bill does
not change the award amount. Under the bill, the total financial aid award including the teacher scholarship
cannot exceed the total amount of expenses to attend college, including tuition, room, board, and other fees.
SB 89 1 Under current law, the amount of the teacher stipend and other state financial aid can not be reduced because
the student receives the stipend.
Using the federal needs calculation rather than the recipient’s expected family contribution should not impact
total expenditures for the Frank O’Bannon Grant. The federal needs calculation is based on the total cost of
attendance at a college or university minus the student’s expected family contribution. CHE already includes
the cost of attendance to determine award amounts for the Frank O’Bannon Grant when calculating different
grant amounts depending on whether the student is attending a private, public, for-profit institution, or Ivy
Tech.
The federal needs calculation and the expected family contribution come from the Free Application for
Federal Student Aid (FAFSA), the federal form students complete in order to apply for federal financial aid
for college. Completing the FAFSA is also required for a student to be eligible for Indiana’s state financial
aid programs.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education.
Local Agencies Affected:
Information Sources: Commission for Higher Education. 2021-2022 Frank O’Bannon Grants.
https://www.in.gov/che/files/2021-2022_Frank_Obannon_Grid_05_24_2021.pdf
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 89 2