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 6865 NOTE PREPARED: Jan 18, 2024
BILL NUMBER: HB 1001 BILL AMENDED: Jan 18, 2024
SUBJECT: Education and Higher Education Matters.
FIRST AUTHOR: Rep. Goodrich BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) Career Scholarship Accounts (CSA): This bill provides that an annual
grant amount awarded under the CSA may be used for costs related to obtaining a driver's license if certain
conditions are met. It provides that a CSA annual grant amount may not be used for the purchase or lease of
a motor vehicle. It also changes certain CSA application time frames from seven days to 30 days.
Higher Education Grants and Scholarships: The bill allows the recipient of a:
(1) Higher Education Award;
(2) Freedom of Choice Grant; or
(3) Scholarship under the Twenty-first Century Scholars Program;
to apply the award, grant, or scholarship to the cost of training by an approved intermediary, employer, or
labor organization. The bill also allows certain recipients of a scholarship under the Twenty-first Century
Scholars program to apply the scholarship to the cost of a sequence, course, apprenticeship, or program of
study provided by a CSA participating entity. The bill also provides maximum annual amounts and maximum
aggregate amounts of an award, grant, or scholarship.
Commission for Higher Education (CHE): This bill requires CHE to:
(1) create a list of intermediaries, employers, and labor organizations approved to receive
reimbursement from a:
(A) Higher Education Award;
(B) Freedom of Choice Grant; and
(C) Scholarship under the Twenty-first Century Scholars Program; and
(2) establish requirements or limitations with regard to reimbursements.
HB 1001 1 State Educational Institutions (SEIs): The bill requires each SEI to provide certain information regarding
degrees, degree completion, faculty members, administrative support staff, costs, salaries, and debt loads to
CHE. It also requires CHE to prepare longitudinal analysis regarding certain data.
Department of Education Higher Education Data: The bill requires each private postsecondary educational
institution and each out-of-state public and nonprofit degree granting institutions that offers instructional or
educational services or training in Indiana to provide to the Department of Education information to carry
out certain reporting requirements and requirements related to the Indiana Graduates Prepared to Succeed
dashboard. It also allows for the revocation of an out-of-state public or nonprofit degree granting institution's
authorization if the institution fails to provide the information.
Employer Training Grant Program: The bill adds teaching to the employment sectors eligible for the Next
Level Jobs Employer Training Grant Program.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Summary - The bill’s provision allowing the recipients of the Frank
O’Bannon Grant or the Twenty-first Century Scholarship to apply the award amount to the cost of receiving
training would have an indeterminate, but likely small, impact on state expenditures in FY 2025. The net
impact is dependent upon a number of factors that are described in more detail below. That provision would
result in a minor workload increase for CHE in FY 2025, but may require additional staff if utilization
increases substantially over time.
Additionally, adding teaching to the employment sectors eligible for the Employer Training Grant Program
could increase expenditures for the program up to the amount appropriated for the program. CHE and state
educational institutions (SEIs) would experience workload increases from other provisions in the bill that
would be dependent upon administrative decisions made by CHE. Finally, the bill’s provisions regarding
utilization of CSA Program account funds to obtain a driver’s license may result in minor workload increases
for the Department of Education and the Treasurer of State.
Additional Information -
(Revised) Financial Aid for Training: Beginning in FY 2025, the bill allows recipients of the Frank
O’Bannon Grant or the Twenty-first Century Scholarship to apply the award amount to the cost of receiving
training by an approved intermediary, employer, or labor organization instead of the educational costs of a
postsecondary educational institution. Additionally, the Twenty-first Century Scholarship can be used by
students that have or had an account in the CSA Program to pay the expenses of finishing a course, sequence,
apprenticeship, or program of study they had started. The bill specifies that a recipient of a Frank O'Bannon
Grant or Twenty-first Century Scholarship who uses the award for training cannot receive an award that
exceeds what they would have received if they had used the award at a higher education institution in a given
year or in aggregate. The provisions are likely to increase Frank O’Bannon and Twenty-first Century
Scholarship expenditures. The impact would be dependent upon a variety of factors, including but not limited
to:
1. The number of students that would want to utilize financial aid for training, course, sequence,
program of study, or apprenticeship completion.
2. The portion of the students described above that was eligible for the Twenty-first Century
Scholarship or meet CHE’s requirements for the use of the Frank O’Bannon Grant.
3. The cost of the training pursued.
HB 1001 2 4. The number of students that would have used a Frank O’Bannon Grant or Twenty-first Century
Scholarship for higher education that would, under the bill, choose instead to use it to get training.
The difference in cost between the training and higher education could result in a state expenditure
decrease that would offset, to some extent, the increase from more students taking advantage of the
Frank O’Bannon Grant or Twenty-first Century Scholarship.
5. Any future impacts on the Outcomes-Based Performance Funding formula distributions from
decreased enrollment in SEIs as students choose to get training instead of attending an SEI.
It is likely that there will be limited utilization of the bill’s provision allowing the grants and scholarships
to be used for training in FY 2025. As student awareness increases and employers, intermediaries, and labor
organizations expand their training programs, participation is likely to increase over time.
Commission for Higher Education: The bill requires CHE to:
1. Create a list of employers, labor organizations, and intermediaries that can receive reimbursement
from a Frank O'Bannon Grant or Twenty-first Century Scholarship and establish requirements and
limits on reimbursements.
2. Develop a process to approve the employers, labor organizations, and intermediaries for
reimbursement.
3. Complete a longitudinal analysis on various costs at each SEI, financial aid awarded to students,
and a comparison of the price of attending SEIs with national data.
4. Prescribe the manner and form by which SEIs must report certain data required by the bill. [See
State Educational Institutions below for additional information.]
Additionally, the bill allows CHE to establish requirements or limitations on students using Frank O’Bannon
or Twenty-first Century Scholarships for training or completing a CSA entity’s course, program, sequence,
or apprenticeship. These requirements would likely be completed with existing staff and resources in FY
2025. However, if utilization of the Frank O’Bannon Grant or the Twenty-First Century Scholarship for
training grows over time, dedicated staff may be necessary in the future.
State Educational Institutions (SEIs): The bill requires SEIs to collect and report information to CHE on
students pursuing and completing each degree offered by the SEI, certain student and SEI staff counts within
degree programs, student cost by degree program, post-graduation salary by degree, SEI administrator and
instructor salary, and student debt data. Some of the data required may not currently be collected at the
granularity specified in the bill. However, the bill gives CHE the authority to describe the manner and form
by which the information is collected, and CHE may be able to utilize its existing data collection
infrastructure and projects to collect some of the data required in the bill. The workload increase for SEIs
will be dependent upon decisions made by CHE.
(Revised) Employer Training Grant Program: The bill will expand the pool of eligible employers for the
Employer Training Grant, which could increase expenditures for the program up to the amount appropriated
for the program. The annual appropriation for the Employer Training Grant is $17.1 M in FY 2024 and FY
2025. The Employer Training Grant reimburses employers in eligible sectors for employee training costs.
The Department of Workforce Development administers the Employer Training Grant and could experience
a minor workload increase. In CY 2020, the program received additional funding from federal CARES Act
dollars which temporarily expanded the program. In FY 2023, program expenditures were below the
appropriated amount.
CSA: The bill allows CSA participants to claim the cost to obtain a driver's license as an allowable expense
HB 1001 3 if the student demonstrates hardship. The Department of Education and Treasurer of State would experience
minor workload increases in reviewing the eligibility of CSA participants interested in claiming the cost of
a driver's license as a CSA allowable expense and potentially administering additional CSA accounts.
Explanation of State Revenues: Financial Aid for Training: SEIs could experience a decrease in revenue
from tuition and fees if some students that would have used the Frank O’Bannon Grant or the Twenty-first
Century Scholarship to enroll in higher education choose instead to receive training. [See Explanation of
State Expenditures].
CSA: Under current law, CSA participants may annually roll over up to $1,000 of the $5,000 they receive
in their account to the next year plus any amount rolled over in a previous year. Any unused funds above this
amount or any funds unused when an account is terminated revert to the General Fund. To the extent the
bill’s provision allowing the DOE to approve a grant of up to $1,250 to obtain a driver’s license reduces the
amount of unused funds in CSA participants’ accounts, General Fund revenue would decrease. Any decrease
in FY 2025 is expected to be small. Based on available funding, fewer than 2,000 students will be able to
participate in the program in FY 2025.
Driver’s License Fee Revenue: To the extent CSA participants would receive a driver’s license earlier in life
due to the grant provided by the bill, driver’s license fee revenue would increase, although the impact is
expected to be minimal. The Bureau of Motor Vehicles (BMV) would experience a revenue increase
dependent upon the number of CSA participants who apply for a driver’s license as a result of this bill’s
provisions. The BMV charges a $17.50 fee for new driver’s license applications under the age of 75.
Additional Information- A driver's license for individuals under the age of 75 costs $17.50, with revenue
distributed as follows:
(1) $0.50 to the State Motor Vehicle Technology Fund.
(2) $2 to the Crossroads 2000 Fund.
(3) $4.50 to the Motor Vehicle Highway Account in the General Fund.
(4) $1.25 to the Integrated Public Safety Communications Fund.
(5) $9.25 to the Commission Fund.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education; Department of Education; Treasurer of State;
Bureau of Motor Vehicles; Department of Workforce Development.
Local Agencies Affected:
Information Sources: Bureau of Motor Vehicles; Commission for Higher Education; Legislative Services
Agency. 2023 Workforce Program Review.
https://s3.us-east-2.amazonaws.com/iga-publications/workforce_review/2023-10-02T13-28-29.680Z-202
3%20Workforce%20Evaluation%20FINAL.pdf
Fiscal Analyst: Austin Spears, 317-234-9454
HB 1001 4