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 6402 NOTE PREPARED: Dec 13, 2021
BILL NUMBER: SB 151 BILL AMENDED:
SUBJECT: Scholarship for Minority Students in Health Care.
FIRST AUTHOR: Sen. Breaux BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill establishes the Scholarship for Minority Students Pursuing Health Care
Careers (scholarship) and the Minority Students Pursuing Health Care Careers Fund (fund). It provides that
the Commission for Higher Education (CHE) administers the scholarship program and the fund.
The bill prescribes qualifications necessary to: (1) receive an initial scholarship; and (2) qualify for renewal
of the scholarship. It provides that the amount of the scholarship awarded for an academic year is the lesser
of: (1) the balance of the scholarship recipient's total cost of attendance for the academic year after the
application of any other financial assistance for which the scholarship recipient qualifies; or (2) $4,000.
The bill also requires a scholarship recipient to enter into a written agreement with CHE to:
(1) use the scholarship solely to fund a course of study resulting in a degree or certificate that
enables the individual to practice as a health care professional in Indiana;
(2) apply for a position as a health care professional in Indiana following the individual's licensure
or certification as a health care professional; and
(3) if hired, practice as a health care professional in Indiana for at least three years.
The bill requires a scholarship recipient to repay the scholarship if the scholarship recipient fails to: (1)
complete the scholarship recipient's program of study; or (2) complete the terms of the scholarship recipient's
agreement with CHE.
The bill annually appropriates to the fund from the state General Fund an amount sufficient to carry out the
purposes of the scholarship program.
SB 151 1 It requires CHE to report to the General Assembly not later than December 1, 2026, regarding the effect of
the scholarship program.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Summary - The bill annually appropriates from the state General Fund
sufficient funds to carry out the scholarship program. Depending on the number of eligible students who
apply, the scholarship program could cost between $5 M to $10 M annually. This estimate assumes that
1,250 to 2,500 students would apply and be eligible for the program annually at a cost of $4,000 per
academic year per student. If additional students apply for and receive the scholarship, the cost of the
program could increase.
Commission for Higher Education: The bill requires the CHE to administer the scholarship program, track
outcomes, and report on the scholarship program. The bill’s requirements represent an additional workload
[and/or expenditure] on the CHE 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.
State Educational Institutions (SEIs): The grant may encourage additional minority students to enroll at SEIs.
State operating support for SEIs is composed of base funding and performance funding. Under the current
higher education performance funding formula, changes to enrollment could affect higher education
appropriations for operations in future bienniums. The impact is probably minor and would depend on the
higher education formula used in the future. [SEIs receive state funding through General Fund
appropriations.]
Additional Information - Approximately 89,000 minority students were enrolled in higher education in
Indiana in 2019-2020. LSA’s analysis of data from the Integrated Postsecondary Education Data System
(IPEDS) found that 14% of the undergraduate degrees and certificates earned by minority students were
earned in health areas that would likely be eligible for the scholarship under this bill. Thus, this estimate
assumes that 14% of enrolled minority students are pursuing eligible health fields, and of those students, 10%
to 20% would apply for and receive the scholarship.
These students would have to agree to work in Indiana in an approved health field for three years after
receiving the scholarship. Scholarship recipients who do not meet the terms of the scholarship would be
required to repay the amount they received. Students could receive a scholarship for up to four undergraduate
academic years. In order to renew the scholarship after the first year students are required to complete 15
credit hours each semester and maintain a 2.0 GPA. The scholarship would be awarded after all other aid.
Students could receive a maximum scholarship per academic year equal to the lesser of $4,000 or the balance
of the student’s cost of attendance. The scholarship could be used to cover tuition and fees, room and board,
and books and equipment. The scholarship can be used at any approved postsecondary educational
institution.
Explanation of State Revenues: State Educational Institutions: SEIs could experience an increase in
enrollment which would increase tuition fee revenue. The full impact depends on the administrative decisions
of SEIs if enrollments are at capacity.
SB 151 2 Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education; State Educational Institutions.
Local Agencies Affected:
Information Sources: Integrated Postsecondary Education Data System (IPEDS).
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 151 3