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 6763 NOTE PREPARED: Feb 23, 2024 BILL NUMBER: SB 8 BILL AMENDED: Feb 22, 2024 SUBJECT: Higher Education Matters. FIRST AUTHOR: Sen. Leising BILL STATUS: CR Adopted - 2 nd House FIRST SPONSOR: Rep. Snow FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: (Amended) Reverse Transfer: This bill establishes the Reverse Transfer Program for Community College Associate Degrees. Bachelors’ Degrees in Three Years: The bill requires each institution that offers baccalaureate degrees to establish a policy to review each of the institution's four year baccalaureate degree program offerings to determine the feasibility of providing each in a specifically structured manner to allow a full-time student to complete the baccalaureate degree within three years. It requires, not later than July 1, 2025, each state educational institution (SEI) to offer at least one baccalaureate degree program specifically structured to allow a full-time student to complete the baccalaureate degree within three years. The bill also requires an SEI to provide an annual report to the Commission for Higher Education (CHE) regarding offering four year baccalaureate degree programs completed in three years. Associate Degrees Granted by Four-Year SEIs: The bill requires each SEI to prepare and submit a report to CHE that includes information regarding a determination by the institution of the feasibility and advisability of establishing and conferring associate degrees to certain students. It also establishes certain requirements for CHE regarding the reports. Indiana College Core: This bill changes the name of the Statewide Transfer General Education Core to the Indiana College Core (College Core). It requires CHE, in coordination with SEIs and the Department of Education (DOE), to maintain and post a list and syllabus of each eligible College Core course. It requires, by July 1, 2025, DOE to partner with one or more institutions to provide online access to all College Core courses through the Course Access Program. It requires, by July 1, 2027, DOE to make all College Core courses available online to all eligible students through the Course Access Program. SB 8 1 This bill requires, beginning with the 2025-2026 school year, each high school to offer College Core or submit a College Core Feasibility Report to CHE. It provides that: (1) a student who successfully completes an eligible course under the college core is entitled to secondary credit toward graduation requirements; and (2) the student's transcripts must reflect the secondary credit. Secondary Credits: The bill expands the schools to which requirements regarding secondary credit apply. Foreign Gifts and Contracts: The bill requires an institution to disclose certain foreign gifts and contracts received or entered into after December 31, 2013. It also requires the CHE to establish and maintain a website for accessing information about disclosed gifts and contracts. It authorizes the CHe to provide for an audit of a institution's use of a disclosed gift, or the proceeds of a disclosed contract, received or entered into after June 30, 2019, and before July 1, 2024. Credit Equivalency Updates: The bill provides that credit equivalencies, including the College Core, for all Cambridge International Advanced A and AS Level examinations must be updated annually and sent by each SEI to CHE by June 1 each year. It provides that each SEI shall post these annually updated credit equivalencies on the SEI's website by July 1 each year. It also provides that CHE shall post the annually updated credit equivalencies on CHE's student transfer of credit portal by July 1 each year. Dual Credit Reporting: The bill requires CHE to: (1) review each course, including the syllabus for each course, that is provided by a postsecondary educational institution to a high school student and for which the student receives high school credit; and (2) not later than November 1, 2025, and not later than November 1 each year thereafter, prepare and submit a report that summarizes the information reviewed by CHE. Effective Date: July 1, 2024. Explanation of State Expenditures: Academic Performance Grant: The FY 2024-FY 2025 state tuition support funding formula includes the Academic Performance Grant. The grant is distributed to public schools based on past academic performance on various measures, including associate degree, Indiana College Core 30, and dual credit attainment. Each of these measures could be impacted by the bill’s requirement that all public high schools offer or have a plan to offer the Indiana College Core 30 by the 2025-2026 school year. Current state tuition support distributions would not be impacted since the distributions are based on past academic performance. However, future iterations of the funding formula may be impacted. Any future impact depends upon future funding formulas. (Revised) CHE: This bill requires CHE to set reporting requirements for SEIs regarding three year baccalaureate programs, the Reverse Transfer Associate Degree Program, and the establishment of associate degree programs at “four year” universities. This bill requires CHE to produce reports for the Governor and Legislative Council and for publication on its website. It also requires CHE to coordinate with DOE and SEIs to maintain a list of eligible College Core courses and to review implementation plans of public high schools that do not yet offer College Core curriculum. CHE will work with SEIs to identify and notify students eligible for the Reverse Transfer Associate Degree Program on a semiannual basis beginning in 2025. These requirements constitute a workload increase for CHE, but it is expected to be met within existing resources. The bill requires CHE to review all dual-credit courses and prepare an annual report summarizing the status of dual-credit courses to the Legislative Council, the Governor, and the Secretary of Education. It requires CHE to post updated course equivalencies on its transfer of credit portal (commonly known at the Core Transfer Library or CTL) and maintain and post a list of, and syllabus for, all eligible College Core courses. SB 8 2 These requirements constitute a workload increase for CHE. Existing staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. (Revised) SEIs: This bill requires SEIs that grant bachelor’s degrees to analyze what baccalaureate programs can be structured to facilitate completion in three years, to implement at least one three year bachelor’s degree program, and to make annual reports regarding the feasibility of implementing three year program designs more broadly. SEIs are also required to submit a report to CHE on the feasibility of establishing associate’s degree programs. SEIs will be required to provide information to CHE regarding students and former students who are eligible for the Reverse Transfer Associate Degree Program. SEIs are also required to coordinate with CHE to maintain a list of eligible College Core courses and to annually submit to CHE updated credit equivalencies for Cambridge International Advanced A and AS Level examinations. These requirements constitute an increase in workload for SEIs, but each SEI should be able to meet them within existing resources. Ivy Tech and Vincennes University will experience a workload increase associated with granting degrees under the Reverse Transfer Associate Degree Program. These schools are also likely to experience short-term workload increases associated with the requirement that public high schools offer the Indiana College Core Curriculum. Of the 209 public schools that offer College Core, 155 are partnered with Ivy Tech to offer dual- credit courses and 16 are partnered with Vincennes. It is likely that the trend will continue as 241 additional schools strive to meet the College Core standard. Ivy Tech estimates as many as five full-time equivalent employees will be required to fully implement the expanded Reverse Transfer Program. Under the existing memorandum of understanding, approximately 40% of evaluated transcripts result in the award of a degree. Associate degrees awarded under the Reverse Transfer Program can be incorporated into CHE’s outcomes- based formula for operating funding, which is likely to result in increased distributions to SEIs in future biennia. [SEIs receive general fund appropriations.] (Revised) DOE: The bill requires that DOE review the feasibility reports submitted by public high schools that do not offer College Core as of September 1, 2025, and each year thereafter until the school implements College Core. DOE is also required to coordinate with CHE to maintain a list of eligible College Core courses. Both of these requirements are to be completed in cooperation with CHE and should be met within existing resources. (Revised) College Core Course Access Program: This bill requires DOE to coordinate with one or more SEIs to make all College Core courses accessible online through the Course Access Program (iCAP) by July 1, 2025 and to make those courses available to all eligible students by July 1, 2027. Entering into the agreement is within the routine administrative functions of DOE and SEIs, but providing access through iCAP may require significant expenditures on the part of DOE, partnered SEIs, or both. Ivy Tech is the only SEI that currently provides courses through iCAP. (Revised) Foreign Gifts and Contracts: The bill requires SEIs to disclose gifts received from and contracts entered into with certain foreign entities. It requires CHE to establish and maintain a website for accessing information about disclosed gifts and contracts. These requirements will increase the workload of SEIs and CHE but should be met within existing resources. The bill also authorizes CHE to audit certain foreign gifts and contracts. The costs of such an audit would SB 8 3 depend on a number of factors, including whether the audit is conducted by CHE or by an outside contractor, the source and nature of the gift or contract in question, and the complexity of the circumstances surrounding the gift or contract. Costs associated with this provision will depend on administrative decisions made by CHE. Explanation of State Revenues: Explanation of Local Expenditures: Public Schools: Public high schools will be required to offer an Indiana College Core curriculum by academic year 2025-2026 or else submit a plan for implementing College Core to CHE each year until it is complete. Currently, 209 of 450 Indiana public high schools offer a College Core curriculum. This requirement constitutes an additional workload on public high schools that do not offer College Core, as well as some potential expenses in credentialing teachers to teach dual-credit courses. [A substantial portion of these costs can be covered by grants from Teach Dual Credit Indiana and STEM Teach Indiana, which provide funding for tuition, textbooks and materials to help teachers meet credentialing requirements.] Any additional funds and resources required could be supplied through existing staff and resources currently being used in another program or with new appropriations. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. Charter schools will have to meet the same requirements to annotate secondary credits on student transcripts as school corporations currently do. This constitutes a workload increase on charter schools, but this requirement can be met within existing resources. Explanation of Local Revenues: Academic Performance Grants: Public schools that currently do not offer the Indiana College Core curriculum that would offer it under the bill may experience a revenue increase in the future from Academic Performance Grants. Any revenue increase is dependent upon future state tuition support funding formulas. [See Explanation of State Expenditures for further details]. State Agencies Affected: Commission for Higher Education, state educational institutions, Department of Education. Local Agencies Affected: Public schools. Information Sources: Greg Harrell, Director of Legislation and Program Implementation, CHE; https://mycollegecore.org/; https://www.in.gov/doe/educators/indiana-course-access-network/; https://transferin.net/; https://www.in.gov/doe/files/iCAP-Provider-Overview-.pdf; https://media.doe.in.gov/icap/ivytech.pdf; https://transferin.net/earned-credits/core-transfer-library/; Mary Jane Michalak, Ivy Tech Community College. Fiscal Analyst: Alexander Raggio, 317-234-9485. SB 8 4