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: Feb 29, 2024
BILL NUMBER: HB 1042 BILL AMENDED: Feb 27, 2024
SUBJECT: Transition to Teaching Scholarships.
FIRST AUTHOR: Rep. Heine BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Raatz
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill defines "teacher" for the Next Generation Hoosier Educators and Next
Generation Hoosier Minority Educators Scholarship Programs and Funds. This bill provides that an applicant
for a Transition to Teaching Scholarship after June 30, 2024, must be a member of a household with an
annual income of $100,000 or less. It 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: Summary – 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.
Additional Information – Beginning with applications after June 30, 2024, applicants for scholarships paid
for with money appropriated for Transition to Teaching scholarships must have a household income of no
more than $100,000. Scholarships awarded from additional money remaining in the Fund at the end of a
fiscal year will prioritize applicants with household incomes of no more than $100,000, but should the pool
of qualified applicants that meet that criterion be exhausted, CHE may award scholarships to applicants from
households with incomes in excess of $100,000. The bill will reduce the pool of eligible applicants but will
not reduce awards since current demand for the scholarships is significantly greater than the number of
scholarships available under provisions of this bill. CHE contracts with a service provider to administer
HB 1042 1 certain aspects of the scholarship programs, but any increase in contract costs is expected to be within current
operational resources. The Next Generation Hoosier Educators Scholarship Fund received General Fund
appropriations of $12 M in each year of the current biennium.
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.
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