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 6229 NOTE PREPARED: Nov 27, 2023
BILL NUMBER: HB 1077 BILL AMENDED:
SUBJECT: State Educational Institutions.
FIRST AUTHOR: Rep. Bartlett BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill requires the Governor's Supplier Diversity Commission, the Commission
for Higher Education (CHE) , and the State Budget Committee to review each State Educational Institution's
(SEI’s) annual report regarding certain supplier diversity requirements. The bill provides that if an SEI’s
annual report is not in compliance with certain supplier diversity requirements, CHE and the State Budget
Committee shall reduce the amount provided to the SEI under the Outcomes-based Funding Formula by a
certain percentage.
Effective Date: July 1, 2024.
Explanation of State Expenditures: State Educational Institutions – State funding to SEIs may be reduced
if the specified targets are not met. In FY 2024, $23.9M was appropriated for performance funding and $35.2
M was appropriated for FY 2025. Funds not expended revert back to the General Fund.
Operating funding for some schools is exempt from performance funding altogether, including IU School
of Medicine, IU Fort Wayne, and Purdue College of Veterinary Medicine. IUPUI, which will split into IU
Indianapolis and Purdue in Indianapolis in FY 2025, is currently exempt from the performance model.
Including all operating appropriations from exempted schools, 1.7% and 2.5% of university operating this
biennium is appropriated through performance funding. Schools that do not receive funding through
performance funding would not be affected by this bill.
Supplier Diversity Requirement Review – This bill’s provisions constitute an additional workload on the
Governor's Supplier Diversity Commission, CHE, and the State Budget Committee. The bill’s requirements
are within each organization’s routine administrative functions and should be able to be implemented with
HB 1077 1 no additional appropriations, assuming near customary staffing and resource levels.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: State Educational Institutions, Governor's Supplier Diversity Commission,
Commission for Higher Education, State Budget Committee.
Local Agencies Affected:
Information Sources: Seth Hinshaw, Commission for Higher Education.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1077 2