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: Mar 8, 2024 BILL NUMBER: SB 8 BILL AMENDED: Mar 7, 2024 SUBJECT: Higher Education Matters. FIRST AUTHOR: Sen. Leising BILL STATUS: Enrolled FIRST SPONSOR: Rep. Snow FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: Reverse Transfer: This bill establishes the Reverse Transfer Program for Community College Associate Degrees. Bachelor’s 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 the Department of Education (DOE) and SEIs, to maintain and post a list and syllabus or course outline record of each eligible College Core course. It requires, by July 1, 2025, DOE to partner with one or more institutions or approved postsecondary educational institutions to provide online access to the College Core through the Course Access Program. SB 8 1 This bill requires each high school to: (1) Beginning with the 2024-2025 school year, offer College Core; or (2) Not later than October 1, 2024, submit a plan or report that meets certain requirements to the CHE. It also 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. 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. 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 and Indiana College Core 30 (College Core), and dual credit attainment. Each of these measures could be impacted if additional public schools offer the Indiana College Core due to the bill's provisions. 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. CHE: The bill requires CHE to establish reporting requirements for new reports, data, and information collected by the agency from public high schools and SEIs. CHE is also required to publish certain information and to produce reports for the Governor and Legislative Council. Other provisions in the bill require CHE to collaborate with DOE and/or SEIs regarding certain matters including a requirement to: 1) Maintain a list, including the syllabus or course outline, of all eligible College Core courses; 2) Review College Core feasability reports received by public high schools who do not plan on offering the College Core curriculum by the 2026-2027 school year, and to provide these high schools with further guidance; 3) Identify and notify students eligible for the Reverse Transfer Associate Degree Program on a semiannual basis beginning in FY 2025; and 4) Annually update the agency’s transfer of credit portal (commonly known as the Core Transfer Library, or CTL) with updated course equivalencies. 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. SEIs: This bill requires SEIs that grant bachelor’s degrees to analyze what baccalaureate programs can be SB 8 2 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 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 and expenditure 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. Under the bill, associate degrees awarded under the Reverse Transfer Program and bachelor's degrees completed in three years 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.] DOE: The bill requires that DOE review the feasibility reports submitted by public high schools who cannot offer College Core by the 2026-2027 school year. 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. College Core Course Access Program: This bill requires DOE to partner with one or more SEIs or approved post-secondary educational institutions before FY 2026. The partnership will make all College Core courses available through the Course Access Program (iCAP) to all eligible students. 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. 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 2026-2027 or submit an Indiana College Core Feasibility Report to CHE. 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 SB 8 3 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 for 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; Kelan Fong, 317-232-9592 SB 8 4