Introduced Version
SENATE BILL No. 199
_____
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: June 29, 2023; July 1, 2023.
Ford J.D.
January 10, 2023, read first time and referred to Committee on Education and Career
Development.
2023 IN 199—LS 6379/DI 125 Introduced
First Regular Session of the 123rd General Assembly (2023)
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SENATE BILL No. 199
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, 2023]: 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
2023 IN 199—LS 6379/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
2023 IN 199—LS 6379/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, 2023]: Sec. 9. "Complexity index" refers to the
9 complexity index determined under IC 20-43-13-4. IC 20-43-13-5.
10 SECTION 3. IC 20-43-2-2, AS AMENDED BY P.L.108-2019,
11 SECTION 218, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) Subject to subsection (f), the
13 maximum state distribution for a state fiscal year for all school
14 corporations for the purposes described in section 3 of this chapter is
15 the amount appropriated by the general assembly for those purposes for
16 that state fiscal year.
17 (b) If the budget director, after review by the budget committee,
18 makes a determination that the amount of the distribution for a state
19 fiscal year for all school corporations for the purposes described in
20 section 3 of this chapter exceeds the amount appropriated for these
21 purposes for the state fiscal year, the budget agency shall transfer
22 money from the state tuition reserve account to the state general fund
23 to cover the difference. However, the maximum amount that may be
24 transferred to the state general fund for the state fiscal year may not
25 exceed:
26 (1) seventy-five million dollars ($75,000,000) for the state fiscal
27 year beginning July 1, 2018; and
28 (2) twenty-five million dollars ($25,000,000) for a state fiscal year
29 beginning July 1, 2019, or thereafter.
30 (c) Any amounts transferred under this section shall be used to
31 augment the appropriation for state tuition support for the state fiscal
32 year and shall be distributed to school corporations to make or restore
33 the distributions for the purposes described in section 3 of this chapter.
34 (d) Transfers under this section are in addition to any transfers made
35 from the state tuition reserve account under IC 4-12-1-15.7 or any other
36 law.
37 (e) To the extent that the amount appropriated plus the amount
38 transferred is less than the amount that would be distributed under this
39 article, the total amount to be distributed for the purposes described in
40 section 3 of this chapter to each recipient during the remaining months
41 of the state fiscal year shall be proportionately reduced so that the total
42 reductions equal the amount of the excess for the purposes described
2023 IN 199—LS 6379/DI 125 4
1 in section 3 of this chapter.
2 (f) For state fiscal years beginning after June 30, 2023, of the
3 maximum state distribution described in subsection (a), the
4 maximum amount of money attributable to complexity index
5 calculations under:
6 (1) IC 20-43-6-3(b) STEP TWO; and
7 (2) IC 20-43-6-3(c) STEP FIVE;
8 that may be distributed for all school corporations in a particular
9 state fiscal year may not exceed seven hundred million one
10 hundred one thousand dollars ($700,101,000). To the extent that
11 the total amount calculated for a particular state fiscal year
12 exceeds the maximum amount provided in this subsection, the total
13 amount attributable to complexity index calculations that may be
14 distributed to each recipient during the remaining months of the
15 state fiscal year shall be proportionately reduced so that the total
16 payments attributable to complexity index calculations equal the
17 maximum amount provided under this subsection.
18 SECTION 4. IC 20-43-3-7, AS AMENDED BY P.L.130-2022,
19 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]: Sec. 7. (a) This section applies to distributions under
21 this article that are computed in any part based on a count of students
22 under IC 20-43-4-2.
23 (b) If the state board subsequently adjusts under IC 20-43-4-3.5 a
24 count, or, for a state fiscal year beginning after June 30, 2023, a
25 determination under IC 20-43-13-5, used for a distribution under this
26 article, the department shall adjust subsequent distributions to the
27 school corporation that are affected by the adjusted count or adjusted
28 determination, on the schedule determined by the department, to
29 reflect the differences between the distribution that the school
30 corporation received and the distribution that the school corporation
31 would have received if the adjusted count or adjusted determination
32 had been used.
33 SECTION 5. IC 20-43-4-9, AS AMENDED BY P.L.130-2022,
34 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2023]: Sec. 9. (a) Subject to subsections (b) and (c), this
36 subsection applies to the calculation of state tuition support
37 distributions that are based on the current ADM, and, for a state fiscal
38 year beginning after June 30, 2023, the complexity index, of a
39 school corporation. The fall count of ADM, as adjusted by the state
40 board under section 3.5 of this chapter, and, for a state fiscal year
41 beginning after June 30, 2023, the fall determination of the
42 complexity index, as adjusted under IC 20-43-13-5, shall be used to
2023 IN 199—LS 6379/DI 125 5
1 compute state tuition support distributions made in the first six (6)
2 months of the current state fiscal year. and The spring count of ADM,
3 as adjusted by the state board under section 3.5 of this chapter, and, for
4 a state fiscal year beginning after June 30, 2023, the spring
5 determination of the complexity index, as adjusted under
6 IC 20-43-13-5, shall be used to compute state tuition support
7 distributions made in the second six (6) months of the state fiscal year.
8 (b) This subsection applies to a school corporation that does not
9 provide the estimates required by section 2(c) of this chapter before the
10 deadline. For monthly state tuition support distributions made before
11 the count of ADM is finalized, the department shall determine the
12 distribution amount for such a school corporation for a state fiscal year
13 of the biennium, using data that were used by the general assembly in
14 determining the state tuition support appropriation for the budget act
15 for that state fiscal year. The department may adjust the data used
16 under this subsection for errors.
17 (c) If the state board adjusts a count of ADM, or, for a state fiscal
18 year beginning after June 30, 2023, adjusts a determination of the
19 complexity index for a school corporation, after a distribution is
20 made under this article, the adjusted count or adjusted complexity
21 index determination retroactively applies to the amount of state
22 tuition support distributed to a school corporation affected by the
23 adjusted count or adjusted complexity index determination. The
24 department shall settle any overpayment or underpayment of state
25 tuition support resulting from an adjusted count of ADM, or, for a
26 state fiscal year beginning after June 30, 2023, an adjusted
27 complexity index determination, on the schedule determined by the
28 department and approved by the budget agency.
29 SECTION 6. IC 20-43-13-4 IS REPEALED [EFFECTIVE JUNE 29,
30 2023]. Sec. 4. (a) Except as provided in subsections (c) and (d), the
31 complexity index is the percentage of the school corporation's students
32 who were receiving Supplemental Nutrition Assistance Program
33 (SNAP) benefits, Temporary Assistance for Needy Families (TANF)
34 benefits, or foster care services as of October 1 in the school year
35 ending in the later of:
36 (1) 2021; or
37 (2) the first year of operation of the school corporation.
38 (b) For a conversion charter school, the percentage determined
39 under this section is the percentage of the sponsor school corporation.
40 (c) Except as provided in subsection (d), the complexity index for
41 a school corporation that has entered into an agreement with one (1) or
42 more charter schools to participate as an innovation network charter
2023 IN 199—LS 6379/DI 125 6
1 school under IC 20-25.7-5 for a state fiscal year is equal to the result
2 using the following formula:
3 STEP ONE: Determine:
4 (A) the school corporation's enrollment; minus
5 (B) the enrollment of each participating innovation network
6 charter school.
7 STEP TWO: Determine the number of students in the school
8 corporation who were receiving Supplemental Nutrition
9 Assistance Program (SNAP) benefits, Temporary Assistance for
10 Needy Families (TANF) benefits, or foster care services as of
11 October 1 in the school year ending in 2021, not including
12 students enrolled in each participating innovation network charter
13 school.
14 STEP THREE: Divide the result of STEP TWO by the result of
15 STEP ONE.
16 STEP FOUR: Determine the enrollment of each participating
17 innovation network charter school.
18 STEP FIVE: Determine the number of students in each
19 participating innovation network charter school who were
20 receiving Supplemental Nutrition Assistance Program (SNAP)
21 benefits, Temporary Assistance for Needy Families (TANF)
22 benefits, or foster care services as of October 1 in the school year
23 ending in the later of:
24 (A) 2021; or
25 (B) the first year of operation of the participating innovation
26 network charter school.
27 STEP SIX: Divide the result of STEP FIVE by the result of STEP
28 FOUR.
29 STEP SEVEN: For each participating innovation network charter
30 school, determine the greater of:
31 (A) the result of STEP THREE; or
32 (B) the result of STEP SIX.
33 STEP EIGHT: For each participating innovation network charter
34 school, multiply the result of STEP SEVEN by the result of STEP
35 FOUR.
36 STEP NINE: Determine the sum of:
37 (A) the result of STEP TWO; plus
38 (B) the results of STEP EIGHT, for each participating
39 innovation network charter school.
40 STEP TEN: Determine the sum of:
41 (A) the result of STEP ONE; plus
42 (B) the results of STEP FOUR for each participating
2023 IN 199—LS 6379/DI 125 7
1 innovation network charter school.
2 STEP ELEVEN: Divide the STEP NINE result by the STEP TEN
3 result.
4 (d) If the complexity index of a participating innovation network
5 charter school that was established before January 1, 2016, is, for the
6 current school year, greater than the complexity index for the school
7 corporation with which the innovation network charter school has
8 contracted, the complexity index of the participating innovation
9 network charter school is determined as described in IC 20-25.7-5-2(e).
10 SECTION 7. IC 20-43-13-5 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
12 1, 2023]: Sec. 5. (a) Except as provided in subsections (e) and (f),
13 and subject to subsection (b), the state board shall determine the
14 number of students in each school corporation receiving
15 Supplemental Nutrition Assistance Program (SNAP) benefits,
16 Temporary Assistance for Needy Families (TANF) benefits, or
17 foster care services two (2) times each school year, with one (1)
18 determination date occurring in each of the following periods:
19 (1) The date of the fall count of ADM determined under
20 IC 20-43-4-3(1).
21 (2) The date of the spring count of ADM determined under
22 IC 20-43-4-3(2).
23 (b) However, if extreme patterns of:
24 (1) student in-migration;
25 (2) illness;
26 (3) natural disaster; or
27 (4) other unusual conditions in a particular school
28 corporation's enrollment;
29 on either a day described in subsection (a)(1) or (a)(2), or the
30 subsequent adjustment date cause the determination under
31 subsection (a) to be unrepresentative of the number of students in
32 each school corporation receiving Supplemental Nutrition
33 Assistance Program (SNAP) benefits, Temporary Assistance for
34 Needy Families (TANF) benefits, or foster care services, the state
35 board may designate another day for making the determination
36 under this section.
37 (c) For purposes of determining basic tuition support for a
38 school corporation under IC 20-43-6-3, the complexity index is the
39 percentage of each school corporation's students receiving
40 Supplemental Nutrition Assistance Program (SNAP) benefits,
41 Temporary Assistance for Needy Families (TANF) benefits, or
42 foster care services on the applicable determination date described
2023 IN 199—LS 6379/DI 125 8
1 in subsection (a).
2 (d) After an initial determination is completed under this
3 section, a school corporation may submit any information
4 necessary to the department with a request that the department
5 make an adjusted determination of students receiving
6 Supplemental Nutrition Assistance Program (SNAP) benefits,
7 Temporary Assistance for Needy Families (TANF) benefits, or
8 foster care services, if the school corporation has reason to believe
9 that the determination is unrepresentative of the number of the
10 school corporation's students receiving the services. After verifying
11 the accuracy of submitted information, the department may adjust
12 the school corporation's determination of students receiving
13 Supplemental Nutrition Assistance Program (SNAP) benefits,
14 Temporary Assistance for Needy Families (TANF) benefits, or
15 foster care services.
16 (e) For a conversion charter school, the percentage determined
17 under this section is the percentage of the sponsor school
18 corporation.
19 (f) Except as provided in subsection (g), the complexity index for
20 a school corporation that has entered into an agreement with one
21 (1) or more charter schools to participate as an innovation network
22 charter school under IC 20-25.7-5 for a state fiscal year is equal to
23 the result using the following formula:
24 STEP ONE: Determine:
25 (A) the school corporation's enrollment; minus
26 (B) the enrollment of each participating innovation
27 network charter school.
28 STEP TWO: Determine the number of students in the school
29 corporation who were receiving Supplemental Nutrition
30 Assistance Program (SNAP) benefits, Temporary Assistance
31 for Needy Families (TANF) benefits, or foster care services as
32 of the applicable date described in subsection (a), not
33 including students enrolled in each participating innovation
34 network charter school.
35 STEP THREE: Divide the result of STEP TWO by the result
36 of STEP ONE.
37 STEP FOUR: Determine the enrollment of each participating
38 innovation network charter school.
39 STEP FIVE: Determine the number of students in each
40 participating innovation network charter school who were
41 receiving Supplemental Nutrition Assistance Program (SNAP)
42 benefits, Temporary Assistance for Needy Families (TANF)
2023 IN 199—LS 6379/DI 125 9
1 benefits, or foster care services on the later of:
2 (A) the most recent determination described in subsection
3 (a); or
4 (B) the first year of operation of the participating
5 innovation network charter school.
6 STEP SIX: Divide the result of STEP FIVE by the result of
7 STEP FOUR.
8 STEP SEVEN: For each participating innovation network
9 charter school, determine the greater of:
10 (A) the result of STEP THREE; or
11 (B) the result of STEP SIX.
12 STEP EIGHT: For each participating innovation network
13 charter school, multiply the result of STEP SEVEN by the
14 result of STEP FOUR.
15 STEP NINE: Determine the sum of:
16 (A) the result of STEP TWO; plus
17 (B) the results of STEP EIGHT, for each participating
18 innovation network charter school.
19 STEP TEN: Determine the sum of:
20 (A) the result of STEP ONE; plus
21 (B) the results of STEP FOUR for each participating
22 innovation network charter school.
23 STEP ELEVEN: Divide the STEP NINE result by the STEP
24 TEN result.
25 (g) If a determination of the complexity index of a participating
26 innovation network charter school that was established before
27 January 1, 2016, is, for either of the determinations made in the
28 current school year, greater than the determination of the
29 complexity index for the school corporation with which the
30 innovation network charter school has contracted, the complexity
31 index of the participating innovation network charter school is
32 determined as described in IC 20-25.7-5-2(f).
33 SECTION 8. An emergency is declared for this act.
2023 IN 199—LS 6379/DI 125