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 6836 NOTE PREPARED: Jan 8, 2024 BILL NUMBER: HB 1219 BILL AMENDED: SUBJECT: Various Education Matters. FIRST AUTHOR: Rep. Teshka BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED XFEDERAL Summary of Legislation: Mastery Based Education Pilot Program: This bill establishes the Mastery Based Education Pilot Program (pilot program) to allow school corporations and charter schools selected by the Department of Education (DOE) to implement a Mastery Based Education Program. It establishes requirements and exemptions to certain laws and rules for schools participating in the pilot program. Collective Bargaining: The bill changes the date by which formal collective bargaining may begin to October 1 and amends similar date requirement under the collective bargaining provisions to October 1. Instructional Time: This bill establishes minimum minute instructional time requirements for each school year. It amends the instructional day and instructional time hour requirements for each instructional day. Superintendent Contracts: The bill provides that a governing body of a school corporation (governing body) may not enter into a contract with a superintendent on or after the date of the election for two or more members of the governing body (instead of one member) until January 1 of the year immediately following the year of the election. Alternate Diplomas: This bill establishes a minimum number of students that may receive an alternate diploma that may be counted for purposes of a school's or school corporation's graduation rate. Teacher Appreciation Grants: The bill requires schools to adopt a teacher appreciation grant policy every four state fiscal years instead of every state fiscal year. Repealed or Removed Provisions: This bill repeals or removes provisions that require: HB 1219 1 (1) A governing body to hold a public meeting on a proposed superintendent contract; (2) A governing body to post an employment contract entered into with a superintendent on the school corporation's website; (3) Public schools to provide information concerning employees who are physically injured on the job by a student; (4) Principals and school corporations to report aggregate results of staff performance evaluations; (5) Principals to complete a survey; (6) Certain teachers to complete a form after the initial year of teaching at a particular school; (7) DOE to report to each teacher preparation program regarding certain surveys and evaluations; and (8) A public hearing before privately negotiating matters during the formal collective bargaining time period. The bill also repeals provisions concerning the following: (1) Strategic and Continuous School Improvement and Achievement Plans. (2) Cultural competency in educational environments. (3) The Primetime Program. Effective Date: July 1, 2024. Explanation of State Expenditures: Mastery Based Education Pilot Program: DOE is required under this bill to establish the Mastery Based Education Pilot Program in FY 2025 and the Commission for Higher Education is required to work with participating public schools to ensure credits earned by participating students are reflected in their transcript and that the students have access to early college credit. The bill also establishes the Mastery Based Education Pilot Program Fund, a non-reverting dedicated fund consisting of appropriations made by the General Assembly and interest, to pay for costs associated with planning and developing the pilot program. These requirements represent a workload and expenditure increase for the agencies outside of their routine administrative functions, and existing staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation. The additional funds and resources required could be supplied through existing staff and resources currently being used in another program or with appropriations made to the pilot program fund. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. Department of Education (DOE): The bill repeals and amends certain statutes beginning in FY 2025. These provisions represent a net workload decrease for DOE. State Tuition Support: Currently, tuition support received by a public school can be reduced for each day under the 180-day requirement that the school does not hold classes. Provisions in the bill that change the instructional time calculation to be based on minutes instead of days may have an undeterminable impact in the amount of tuition support payments withheld from public schools. [Indiana Performance Qualified School Districts are already allowed to count instructional time in minutes rather than days, and this provision would have no impact on these schools.] Additional Information - DOE: Provisions in the bill require DOE to modify how they compute full-time equivalency. This workload increase will be offset by the following provisions: (1) A requirement to post data onto their website concerning injuries sustained by school staff from HB 1219 2 students is repealed; (2) A requirement to collect and post onto their website certain reports regarding state teacher preparation programs is repealed; (3) A requirement to make a model school improvement plan for use by schools is repealed; (4) A requirement to develop materials to assist schools in developing cultural competency is repealed; and (5) The number of Teacher Appreciation Grant (TAG) policies that must be reviewed by the agency is reduced by allowing schools to adopt a TAG policy once every four years instead of annually. Mastery Based Education Pilot Program: The pilot program established in this bill requires DOE to: (1) Determine how pilot program participants will be selected; (2) Annually determine common skill masteries to be used by participating schools; (3) Approve dedicated lead partners who will implement the pilot program in a participating school; (4) Receive annual reports from dedicated lead partners; and (5) Submit an annual report to the Legislative Council. Explanation of State Revenues: Explanation of Local Expenditures: Public Schools: The bill repeals and amends certain statutes beginning in FY 2025. These provisions represent a workload decrease for public schools. Mastery Based Education Pilot Program: Public schools whose applications are selected to participate in the pilot program will be required to contract with an approved dedicated lead partner, adhere to the pilot program requirements, establish community partnerships, and provide necessary data or information to DOE when requested. The bill’s requirements represent an additional workload [and/or expenditure] for schools outside of their routine administrative functions, and existing staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation. The additional funds and resources required could be supplied through existing staff and resources currently being used in another program or with new appropriations. Participating schools will be exempt from certain state requirements, which may provide an offsetting workload decrease. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. Instructional Time: Provisions in the bill reduce the minimum number of instructional days a school corporation must provide educational services to its students from 180 days, to 175 days. However, the bill requires schools to also meet annual minimum instructional minute requirements. Schools who reduce the number of instructional days may be able to reduce transportation, utility, and other expenditures that may be offset by a reduction in certain school revenue. The impact on public school expenditures is dependent on local action. Residential Treatment Facility (RTF): Public schools are required to pay a daily per diem for every student that is placed into and receives educational services from an RTF. The payment amount is equivalent to the proportional share of the basic tuition support the school receives per student, plus any special education grants received by the school for the student. Under current statute, this amount is prorated according to the number of instructional days the student received educational services from the RTF. Under the bill, this amount is instead prorated according to the amount of instructional time in minutes received by the student. This may have an undeterminable impact on public school daily per diem expenditures paid to RTFs. Additional Information - HB 1219 3 Public Schools: Public schools will experience a workload decrease due to the following provisions: (1) A requirement for public schools to provide reports to DOE regarding certain incidents in which school staff was injured by a student is repealed; (2) Requirements for school corporations to hold a public meeting before they hire a superintendent and to post provisions of the superintendent’s contract onto their website are repealed; (3) A requirement for school corporations to hold a public hearing regarding certain collective bargaining topics before they may engage in formal collective bargaining negotiations is repealed; (4) Certain requirements for public schools regarding staff performance evaluations and teacher preparation programs are repealed; (5) A requirement for public schools to develop a school improvement plan is repealed; and (6) Public schools may adopt a TAG policy once every four years instead of annually. Instructional Time: Provisions in the bill reduce the minimum number of instructional days schools must provide from 180 to 175, but still require students in grades 1 through 6 to receive 54,000 instructional minutes, students in grades 7 through 12 to receive 64,800 instructional minutes, and flex students to receive 32,400 instructional minutes. This is the equivalent amount of time required by current law, which expressed that time in hours. The bill also places a cap on the instructional time a student may receive per day to seven hours. Schools who reduce the number of instructional days they provide to students may be able to reduce expenditures. Based on a school year of 180 days for example, school corporations spent about $4.1 M per day to transport students to school in FY 2023 and $3.4 M in food service expenditures. Explanation of Local Revenues: Instructional Time: School corporations who reduce the number of instructional days provided to students may experience a decrease in revenue dependent on local action. [For reference, school corporations received approximately $3.8 M a day in food service revenue from federal, state, and local sources in 2023.] State Tuition Support: [See Explanation of State Expenditures.] State Agencies Affected: Department of Education; Commission for Higher Education. Local Agencies Affected: Public schools. Information Sources: Department of Education; LSA Education Database. Fiscal Analyst: Kelan Fong, 317-232-9592. HB 1219 4