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 6221 NOTE PREPARED: Jan 11, 2024
BILL NUMBER: HB 1042 BILL AMENDED:
SUBJECT: Transition to Teaching Scholarships.
FIRST AUTHOR: Rep. Heine BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that any balance in the Next Generation Hoosier Educators
Scholarship Fund (Fund) remaining after the award of Next Generation Hoosier Educators Scholarships for
a fiscal year may be used to fund additional Transition to Teaching Scholarships. It also removes a provision
concerning the reduction of scholarships if certain limits are exceeded.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill’s provisions could result in an increase in expenditures from
the nonreverting Next Generation Hoosier Educators Scholarships Fund. There would also be a workload
increase for the Commission for Higher Education (CHE) which administers the Program and the Fund. Any
increase in expenditures or workload can be met within CHE’s existing resources. [CHE contracts with a
service provider to administer certain aspects of the scholarship programs, but any increase in contract costs
is expected to be within current operational resources.]
Explanation of State Revenues:
Explanation of Local Expenditures: The bill’s provisions could result in an increase in the number of
people who pursue certification through an alternative teacher certification program, which would expand
the pool of available teachers as well as improve retention for schools that hire scholarship recipients. Both
traditional and alternative certification program recipients have the same obligation to teach in an eligible
school for at least five years after certification as well as the requirement to repay the scholarship under
certain conditions. Schools that hire a scholarship recipient could have lower costs associated with faculty
turnover.
HB 1042 1 Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education.
Local Agencies Affected: Public schools.
Information Sources: Seth Hinshaw and Joshua Garrison, Commission for Higher Education.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1042 2