Introduced Version
SENATE BILL No. 368
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-25.7-5-2; IC 20-43.
Synopsis: Complexity index within the school funding formula.
Requires, for state fiscal years beginning after June 30, 2023, the state
board of education to determine each school corporation's complexity
index two times each year. Provides that the complexity index count
dates coincide with the average daily membership count days. Allows
a school corporation to request an adjustment to the school
corporation's complexity index. Provides a maximum amount of money
attributable to complexity index calculations that may be distributed for
all school corporations in a particular state fiscal year.
Effective: July 1, 2022.
Ford J.D.
January 11, 2022, read first time and referred to Committee on Appropriations.
2022 IN 368—LS 6808/DI 125 Introduced
Second Regular Session of the 122nd General Assembly (2022)
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SENATE BILL No. 368
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 20-25.7-5-2, AS AMENDED BY P.L.165-2021,
2 SECTION 153, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) The board may enter into an
4 agreement with an organizer to reconstitute an eligible school as a
5 participating innovation network charter school or to establish a
6 participating innovation network charter school at a location selected
7 by the board within the boundary of the school corporation.
8 Notwithstanding IC 20-26-7.1, a participating innovation network
9 charter school may be established within a vacant school building.
10 (b) The terms of the agreement entered into between the board and
11 an organizer must specify the following:
12 (1) A statement that the organizer authorizes the department to
13 include the charter school's performance assessment results under
14 IC 20-31-8 when calculating the school corporation's performance
15 assessment under rules adopted by the state board.
16 (2) The amount of state funding, including tuition support (if the
17 participating innovation network charter school is treated in the
2022 IN 368—LS 6808/DI 125 2
1 same manner as a school operated by the school corporation
2 under subsection (d)(2)), and money levied as property taxes that
3 will be distributed by the school corporation to the organizer.
4 (3) The performance goals and accountability metrics agreed
5 upon for the charter school in the charter agreement between the
6 organizer and the authorizer.
7 (c) If an organizer and the board enter into an agreement under
8 subsection (a), the organizer and the board shall notify the department
9 that the agreement has been made under this section within thirty (30)
10 days after the agreement is entered into.
11 (d) Upon receipt of the notification under subsection (c), for school
12 years starting after the date of the agreement:
13 (1) the department shall include the participating innovation
14 network charter school's performance assessment results under
15 IC 20-31-8 when calculating the school corporation's performance
16 assessment under rules adopted by the state board;
17 (2) the department shall treat the participating innovation network
18 charter school in the same manner as a school operated by the
19 school corporation when calculating the total amount of state
20 funding to be distributed to the school corporation unless
21 subsection (e) applies; and
22 (3) if requested by a participating innovation network charter
23 school that reconstitutes an eligible school, the department may
24 use student growth as the state board's exclusive means to
25 determine the innovation network charter school's category or
26 designation of school improvement under 511 IAC 6.2-10-10 for
27 a period of three (3) years. Beginning with the 2019-2020 school
28 year, the department may not use student growth as the state
29 board's exclusive means to determine an innovation network
30 charter school's category or designation of school improvement.
31 This subdivision expires July 1, 2023.
32 (e) If a participating innovation network school was established
33 before January 1, 2016, and for the current school year has a
34 complexity index that is greater than the complexity index for the
35 school corporation that the innovation network school has contracted
36 with, the innovation network school shall be treated as a charter school
37 for purposes of determining tuition support. This subsection expires
38 June 30, 2023.
39 (f) This subsection applies for state fiscal years beginning after
40 June 30, 2023. If a determination of the complexity index of a
41 participating innovation network charter school that was
42 established before January 1, 2016, is, for either of the
2022 IN 368—LS 6808/DI 125 3
1 determinations made in the current school year, greater than the
2 determination of the complexity index for the school corporation
3 with which the innovation network charter school has contracted,
4 the innovation network school shall be treated as a charter school
5 for purposes of determining tuition support.
6 SECTION 2. IC 20-43-1-9, AS AMENDED BY P.L.213-2015,
7 SECTION 205, IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2022]: Sec. 9. "Complexity index" refers to the
9 complexity index determined:
10 (1) for state fiscal years ending before July 1, 2023, under
11 IC 20-43-13-4; and
12 (2) for state fiscal years beginning after June 30, 2023, under
13 IC 20-43-13-5.
14 SECTION 3. IC 20-43-2-2, AS AMENDED BY P.L.108-2019,
15 SECTION 218, IS AMENDED TO READ AS FOLLOWS
16 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) Subject to subsection (f), the
17 maximum state distribution for a state fiscal year for all school
18 corporations for the purposes described in section 3 of this chapter is
19 the amount appropriated by the general assembly for those purposes for
20 that state fiscal year.
21 (b) If the budget director, after review by the budget committee,
22 makes a determination that the amount of the distribution for a state
23 fiscal year for all school corporations for the purposes described in
24 section 3 of this chapter exceeds the amount appropriated for these
25 purposes for the state fiscal year, the budget agency shall transfer
26 money from the state tuition reserve account to the state general fund
27 to cover the difference. However, the maximum amount that may be
28 transferred to the state general fund for the state fiscal year may not
29 exceed:
30 (1) seventy-five million dollars ($75,000,000) for the state fiscal
31 year beginning July 1, 2018; and
32 (2) twenty-five million dollars ($25,000,000) for a state fiscal year
33 beginning July 1, 2019, or thereafter.
34 (c) Any amounts transferred under this section shall be used to
35 augment the appropriation for state tuition support for the state fiscal
36 year and shall be distributed to school corporations to make or restore
37 the distributions for the purposes described in section 3 of this chapter.
38 (d) Transfers under this section are in addition to any transfers made
39 from the state tuition reserve account under IC 4-12-1-15.7 or any other
40 law.
41 (e) To the extent that the amount appropriated plus the amount
42 transferred is less than the amount that would be distributed under this
2022 IN 368—LS 6808/DI 125 4
1 article, the total amount to be distributed for the purposes described in
2 section 3 of this chapter to each recipient during the remaining months
3 of the state fiscal year shall be proportionately reduced so that the total
4 reductions equal the amount of the excess for the purposes described
5 in section 3 of this chapter.
6 (f) For state fiscal years beginning after June 30, 2023, of the
7 maximum state distribution described in subsection (a), the
8 maximum amount of money attributable to complexity index
9 calculations under:
10 (1) IC 20-43-6-3(b) STEP TWO; and
11 (2) IC 20-43-6-3(c) STEP FIVE;
12 that may be distributed for all school corporations in a particular
13 state fiscal year may not exceed seven hundred million one
14 hundred one thousand dollars ($700,101,000). To the extent that
15 the total amount calculated for a particular state fiscal year
16 exceeds the maximum amount provided in this subsection, the total
17 amount attributable to complexity index calculations that may be
18 distributed to each recipient during the remaining months of the
19 state fiscal year shall be proportionately reduced so that the total
20 payments attributable to complexity index calculations equal the
21 maximum amount provided under this subsection.
22 SECTION 4. IC 20-43-3-7, AS AMENDED BY P.L.213-2015,
23 SECTION 212, IS AMENDED TO READ AS FOLLOWS
24 [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) This section applies to
25 distributions under this article that are computed in any part based on
26 a count of students under IC 20-43-4-2 or, for a state fiscal year
27 beginning after June 30, 2023, a determination under
28 IC 20-43-13-5.
29 (b) If the state board subsequently adjusts under IC 20-43-4-2 a
30 count, or, for a state fiscal year beginning after June 30, 2023, a
31 determination under IC 20-43-13-5, used for a distribution under this
32 article, the department shall adjust subsequent distributions to the
33 school corporation that are affected by the adjusted count or adjusted
34 determination, on the schedule determined by the department, to
35 reflect the differences between the distribution that the school
36 corporation received and the distribution that the school corporation
37 would have received if the adjusted count or adjusted determination
38 had been used.
39 SECTION 5. IC 20-43-4-9, AS AMENDED BY P.L.108-2019,
40 SECTION 224, IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JULY 1, 2022]: Sec. 9. (a) Subject to subsections (b) and
42 (c), this subsection applies to the calculation of state tuition support
2022 IN 368—LS 6808/DI 125 5
1 distributions that are based on the current ADM, and, for a state fiscal
2 year beginning after June 30, 2023, the complexity index, of a
3 school corporation. The fall count of ADM, as adjusted by the state
4 board under section 2 of this chapter, and, for a state fiscal year
5 beginning after June 30, 2023, the fall determination of the
6 complexity index, as adjusted under IC 20-43-13-5, shall be used to
7 compute state tuition support distributions made in the first six (6)
8 months of the current state fiscal year. and The spring count of ADM,
9 as adjusted by the state board under section 2 of this chapter, and, for
10 a state fiscal year beginning after June 30, 2023, the spring
11 determination of the complexity index, as adjusted under
12 IC 20-43-13-5, shall be used to compute state tuition support
13 distributions made in the second six (6) months of the state fiscal year.
14 (b) This subsection applies to a school corporation that does not
15 provide the estimates required by section 2(b) of this chapter before the
16 deadline. For monthly state tuition support distributions made before
17 the count of ADM is finalized, the department shall determine the
18 distribution amount for such a school corporation for a state fiscal year
19 of the biennium, using data that were used by the general assembly in
20 determining the state tuition support appropriation for the budget act
21 for that state fiscal year. The department may adjust the data used
22 under this subsection for errors.
23 (c) If the state board adjusts a count of ADM, or, for a state fiscal
24 year beginning after June 30, 2023, adjusts a determination of the
25 complexity index for a school corporation, after a distribution is
26 made under this article, the adjusted count or adjusted complexity
27 index determination retroactively applies to the amount of state
28 tuition support distributed to a school corporation affected by the
29 adjusted count or adjusted complexity index determination. The
30 department shall settle any overpayment or underpayment of state
31 tuition support resulting from an adjusted count of ADM, or, for a
32 state fiscal year beginning after June 30, 2023, an adjusted
33 complexity index determination, on the schedule determined by the
34 department and approved by the budget agency.
35 SECTION 6. IC 20-43-13-4, AS AMENDED BY P.L.165-2021,
36 SECTION 168, IS AMENDED TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2022]: Sec. 4. (a) This section applies for the
38 state fiscal years:
39 (1) beginning July 1, 2021, and ending June 30, 2022; and
40 (2) beginning July 1, 2022, and ending June 30, 2023.
41 (b) Except as provided in subsections (c) and (d), (d) and (e), the
42 complexity index is the percentage of the school corporation's students
2022 IN 368—LS 6808/DI 125 6
1 who were receiving Supplemental Nutrition Assistance Program
2 (SNAP) benefits, Temporary Assistance for Needy Families (TANF)
3 benefits, or foster care services as of October 1 in the school year
4 ending in the later of:
5 (1) 2021; or
6 (2) the first year of operation of the school corporation.
7 (b) (c) For a conversion charter school, the percentage determined
8 under this section is the percentage of the sponsor school corporation.
9 (c) (d) Except as provided in subsection (d), (e), the complexity
10 index for a school corporation that has entered into an agreement with
11 one (1) or more charter schools to participate as an innovation network
12 charter school under IC 20-25.7-5 for a state fiscal year is equal to the
13 result using the following formula:
14 STEP ONE: Determine:
15 (A) the school corporation's enrollment; minus
16 (B) the enrollment of each participating innovation network
17 charter school.
18 STEP TWO: Determine the number of students in the school
19 corporation who were receiving Supplemental Nutrition
20 Assistance Program (SNAP) benefits, Temporary Assistance for
21 Needy Families (TANF) benefits, or foster care services as of
22 October 1 in the school year ending in 2021, not including
23 students enrolled in each participating innovation network charter
24 school.
25 STEP THREE: Divide the result of STEP TWO by the result of
26 STEP ONE.
27 STEP FOUR: Determine the enrollment of each participating
28 innovation network charter school.
29 STEP FIVE: Determine the number of students in each
30 participating innovation network charter school who were
31 receiving Supplemental Nutrition Assistance Program (SNAP)
32 benefits, Temporary Assistance for Needy Families (TANF)
33 benefits, or foster care services as of October 1 in the school year
34 ending in the later of:
35 (A) 2021; or
36 (B) the first year of operation of the participating innovation
37 network charter school.
38 STEP SIX: Divide the result of STEP FIVE by the result of STEP
39 FOUR.
40 STEP SEVEN: For each participating innovation network charter
41 school, determine the greater of:
42 (A) the result of STEP THREE; or
2022 IN 368—LS 6808/DI 125 7
1 (B) the result of STEP SIX.
2 STEP EIGHT: For each participating innovation network charter
3 school, multiply the result of STEP SEVEN by the result of STEP
4 FOUR.
5 STEP NINE: Determine the sum of:
6 (A) the result of STEP TWO; plus
7 (B) the results of STEP EIGHT, for each participating
8 innovation network charter school.
9 STEP TEN: Determine the sum of:
10 (A) the result of STEP ONE; plus
11 (B) the results of STEP FOUR for each participating
12 innovation network charter school.
13 STEP ELEVEN: Divide the STEP NINE result by the STEP TEN
14 result.
15 (d) (e) If the complexity index of a participating innovation network
16 charter school that was established before January 1, 2016, is, for the
17 current school year, greater than the complexity index for the school
18 corporation with which the innovation network charter school has
19 contracted, the complexity index of the participating innovation
20 network charter school is determined as described in IC 20-25.7-5-2(e).
21 SECTION 7. IC 20-43-13-5 IS ADDED TO THE INDIANA CODE
22 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
23 1, 2022]: Sec. 5. (a) This section applies for state fiscal years:
24 (1) beginning July 1, 2023, and ending June 30, 2024; and
25 (2) beginning July 1, 2024, and ending June 30, 2025.
26 (b) Except as provided in subsections (f) and (g), and subject to
27 subsection (c), the state board shall determine the number of
28 students in each school corporation receiving Supplemental
29 Nutrition Assistance Program (SNAP) benefits, Temporary
30 Assistance for Needy Families (TANF) benefits, or foster care
31 services two (2) times each school year, with one (1) determination
32 date occurring in each of the following periods:
33 (1) The date of the fall count of ADM determined under
34 IC 20-43-4-3(a)(1).
35 (2) The date of the spring count of ADM determined under
36 IC 20-43-4-3(a)(2).
37 (c) However, if extreme patterns of:
38 (1) student in-migration;
39 (2) illness;
40 (3) natural disaster; or
41 (4) other unusual conditions;
42 on either a day described in subsection (b)(1) or (b)(2), or the
2022 IN 368—LS 6808/DI 125 8
1 subsequent adjustment date cause the determination under
2 subsection (b) to be unrepresentative of the number of students in
3 each school corporation receiving Supplemental Nutrition
4 Assistance Program (SNAP) benefits, Temporary Assistance for
5 Needy Families (TANF) benefits, or foster care services, the state
6 board may designate another day for making the determination
7 under this section.
8 (d) For purposes of determining basic tuition support for a
9 school corporation under IC 20-43-6-3, the complexity index is the
10 percentage of each school corporation's students receiving
11 Supplemental Nutrition Assistance Program (SNAP) benefits,
12 Temporary Assistance for Needy Families (TANF) benefits, or
13 foster care services on the applicable determination date described
14 in subsection (b).
15 (e) After an initial determination is completed under this
16 section, a school corporation may submit any information
17 necessary to the department with a request that the department
18 make an adjusted determination of students receiving
19 Supplemental Nutrition Assistance Program (SNAP) benefits,
20 Temporary Assistance for Needy Families (TANF) benefits, or
21 foster care services, if the school corporation has reason to believe
22 that the determination is unrepresentative of the number of the
23 school corporation's students receiving the services. After verifying
24 the accuracy of submitted information, the department may adjust
25 the school corporation's determination of students receiving
26 Supplemental Nutrition Assistance Program (SNAP) benefits,
27 Temporary Assistance for Needy Families (TANF) benefits, or
28 foster care services.
29 (f) For a conversion charter school, the percentage determined
30 under this section is the percentage of the sponsor school
31 corporation.
32 (g) Except as provided in subsection (h), the complexity index
33 for a school corporation that has entered into an agreement with
34 one (1) or more charter schools to participate as an innovation
35 network charter school under IC 20-25.7-5 for a state fiscal year is
36 equal to the result using the following formula:
37 STEP ONE: Determine:
38 (A) the school corporation's enrollment; minus
39 (B) the enrollment of each participating innovation
40 network charter school.
41 STEP TWO: Determine the number of students in the school
42 corporation who were receiving Supplemental Nutrition
2022 IN 368—LS 6808/DI 125 9
1 Assistance Program (SNAP) benefits, Temporary Assistance
2 for Needy Families (TANF) benefits, or foster care services as
3 of the applicable date described in subsection (b), not
4 including students enrolled in each participating innovation
5 network charter school.
6 STEP THREE: Divide the result of STEP TWO by the result
7 of STEP ONE.
8 STEP FOUR: Determine the enrollment of each participating
9 innovation network charter school.
10 STEP FIVE: Determine the number of students in each
11 participating innovation network charter school who were
12 receiving Supplemental Nutrition Assistance Program (SNAP)
13 benefits, Temporary Assistance for Needy Families (TANF)
14 benefits, or foster care services on the later of:
15 (A) the most recent determination described in subsection
16 (b); or
17 (B) the first year of operation of the participating
18 innovation network charter school.
19 STEP SIX: Divide the result of STEP FIVE by the result of
20 STEP FOUR.
21 STEP SEVEN: For each participating innovation network
22 charter school, determine the greater of:
23 (A) the result of STEP THREE; or
24 (B) the result of STEP SIX.
25 STEP EIGHT: For each participating innovation network
26 charter school, multiply the result of STEP SEVEN by the
27 result of STEP FOUR.
28 STEP NINE: Determine the sum of:
29 (A) the result of STEP TWO; plus
30 (B) the results of STEP EIGHT, for each participating
31 innovation network charter school.
32 STEP TEN: Determine the sum of:
33 (A) the result of STEP ONE; plus
34 (B) the results of STEP FOUR for each participating
35 innovation network charter school.
36 STEP ELEVEN: Divide the STEP NINE result by the STEP
37 TEN result.
38 (h) If a determination of the complexity index of a participating
39 innovation network charter school that was established before
40 January 1, 2016, is, for either of the determinations made in the
41 current school year, greater than the determination of the
42 complexity index for the school corporation with which the
2022 IN 368—LS 6808/DI 125 10
1 innovation network charter school has contracted, the complexity
2 index of the participating innovation network charter school is
3 determined as described in IC 20-25.7-5-2(f).
2022 IN 368—LS 6808/DI 125