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 6125 NOTE PREPARED: Feb 29, 2024
BILL NUMBER: SB 15 BILL AMENDED: Feb 29, 2024
SUBJECT: Military and Veteran Issues.
FIRST AUTHOR: Sen. Tomes BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Rep. Bartels
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: (Amended) This bill provides that certain disability ratings and educational cost
exemptions apply to an individual whose parent enlisted in the armed forces after June 30, 2017 (instead of
June 30, 2011).
The bill requires that the Indiana Department of Labor (DOL) consult with the Indiana Department of
Veterans' Affairs (IDVA) to create and distribute a veterans' benefits and services poster. The bill provides
that the veterans' benefits and services poster must contain certain information. It also requires that Indiana
employers with more than 50 full-time employees (or their equivalent) display the veterans' benefits and
services poster in a conspicuous place.
The bill expands the eligibility requirements for admission to the Indiana Veterans' Home.
The bill adds a definition of an "eligible person" for purposes of administering Grants for Veterans’ Services
(GVS). It also provides that a qualified entity may receive a GVS to provide certain services to support an
eligible person.
The bill updates references throughout the Indiana Code relating to the armed forces of the United States or
uniformed services to include the United States Space Force (USSF). It makes technical changes to various
references relating to the components of the armed forces of the United States.
The bill provides that the governing body of a school corporation, the organizer of a charter school, or the
chief administrative officer of a nonpublic school system shall authorize the absence and excuse of each
secondary school student who is ordered to active duty with the armed forces of the United States, including
SB 15 1 their reserve components or the Indiana National Guard for at least 15 days in a school year. (Current law
provides that a governing body of a school corporation or the chief administrative officer of a nonpublic
school system shall authorize the absence and excuse of each secondary school student who is ordered to
active duty with Indiana National Guard for not more than 10 days in a school year.)
Effective Date: (Amended) July 1, 2024; January 1, 2025.
Explanation of State Expenditures: Modification of Reduction of Fee Exemption Based on Disability
Rating: There will be minimal impact on expenditures for fee exemptions due to this bill in the near term
because very few CVO applicants for financial assistance have parents who enlisted after June 30, 2011. The
Indiana Department of Veterans Affairs (IDVA) reports that applicants who fall under the 2011 enlistment
rule have thus far had disability ratings of 80% or above and are receiving the same 100% exemption to
which they would be entitled under this bill. However, this bill will increase expenditures for CVO fee
remissions in the future as children of veterans who entered the military after June 30, 2011, and before July
1, 2017, reach college age and become eligible. The impact will increase over time, increasing significantly
in the late 2030s and continuing to increase throughout the 2040s.
Commission for Higher Education (CHE): The CHE administers the CVO fee exemptions and would have
to make administrative changes based on the provisions of this bill. The provision that delays reduction of
the fee exemption based on the parent’s disability rating would simplify administration of the fee exemption
for affected applicants. The bill’s requirements should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Department of Veterans Affairs: Determining whether students are eligible for a fee exemption based on the
service connected death or disability of a parent is within the IDVA’s routine administrative functions and
should be able to be implemented with no additional appropriations, assuming near customary agency
staffing and resource levels.
(Revised) Grants for Veterans’ Services: This bill expands the types of programs for which a GVS may be
received. It expands the classifications of eligible veterans from those discharged under honorable conditions
to those discharged under any conditions other than dishonorable. It also enables “eligible persons” as
defined in the bill to receive services from programs funded by grants. The category of eligible persons
includes the immediate family (spouse, children, stepchildren, parents, or grandparents) and/or primary
caregiver of a veteran. These provisions significantly expand the types of programs that may apply for a GVS
and may increase total GVS applications and the associated workload for IDVA. It will not increase the total
number of grants made or the total amount of funds granted to recipients.
(Revised) Eligibility for Admission to the Indiana Veterans’ Home: In addition to changing eligibility
requirements from veterans and spouses of veterans discharged under honorable conditions to those
discharged under any conditions other than dishonorable, this bill changes the residency requirements for
admission to the Indiana Veterans’ Home. Under current law, an applicant must have been a resident of
Indiana for at least one year before applying for admission to the home. Under this bill, an otherwise eligible
person who is not a resident of Indiana may apply to the home and be admitted so long as they change their
legal residence to Indiana within 6 months of admission. This will significantly expand the eligible
population of veterans and veterans’ spouses that may apply for and be admitted to the home. Any increase
in home admissions and residency will increase expenditures but will also increase revenues. The net impact
of an increase in residency is indeterminate at this time.
SB 15 2 (Revised) Statutory References to the Armed Forces and Uniformed Services: Provisions of this bill affect
Bureau of Motor Vehicle procedures, burial rights in the Veterans Cemetery, grants from the MFRF (a
dedicated, non-reverting fund), professional licensing provisions, actions by the Attorney General and Civil
Rights Commissions regarding discrimination and predatory practices targeting military members, rights of
veteran students at state educational institutions, and leaves of absence for elected officials who are called
to active duty. Some agencies will need to amend administrative forms and processes to be inclusive of USSF
personnel. All of these provisions are within the routine administrative functions of their respective agencies
and should be able to be implemented with no additional appropriations, assuming near customary agency
staffing and resource levels.
Workplace Signage: This bill requires DOL and IDVA to develop and distribute a veterans’ benefits and
services poster for businesses to display. This constitutes a one-time workload increase for both DOL and
IDVA, but the requirements are within each agency’s routine administrative functions and should be able
to be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels. [Both agencies are funded by General Fund appropriations.] All state agencies would be required to
print and display the posters.
Additional Information – Modification of Reduction of Fee Exemption Based on Disability Rating: The bill
modifies the provision which reduces the fee exemption for students based on their parents’ disability rating.
This aspect of current law applies to students whose parents joined the military after June 30, 2011. Under
current law, approximately 72% of that cohort would experience a significant decrease in their benefits
relative to those whose parents joined the military before July 1, 2011. Under this bill, students whose
parents entered the military after June 30, 2011, and before July 1, 2017 would receive full fee exemptions.
(Revised) Veterans’ Home: Expenses are paid primarily from two dedicated funds, the Veterans’ Home
Comfort and Welfare Fund and the Veterans’ Home Building Fund. As of FY 2023, the Veterans’ Home
Comfort and Welfare Fund has a balance of $9.5 M and the Veterans’ Home Building Fund has a balance
of $6.2 M.
(Revised) Statutory References to Armed Forces and Uniformed Services: This bill makes members of the
USSF eligible for a number of benefits and programs for which all other members of the armed forces have
been eligible. It is likely that most of these benefits were being provided even without the USSF being listed
in statute because the majority of USSF members–known as Guardians–transferred into the USSF from other
services, and the USSF falls under the Department of the Air Force. The overall effect of this bill on state
revenues is likely to be small since the total size of the USSF is less than 2% of current US military members
and less than 1% of total active duty personnel assigned to Indiana. It is likely that fluctuations in the
membership of other services will have a greater impact on program expenditures than extending the relevant
benefits to Guardians.
Workplace Signage: All posters and notices that are required to be posted by Indiana employers are posted
on the DOL website. Although commercially-produced versions of signs are available, DOL recommends
employers simply print the required signage. No additional expenditures should be required by either DOL
or IDVA to design or distribute the posters.
Explanation of State Revenues: (Revised) Veterans’ Home: Residents are required to pay member
maintenance fees. The home also receives per capita federal funding that is deposited in the Veterans’ Home
Comfort and Welfare Fund (80%) and the Veterans’ Home Building Fund (20%). Revenue from these
sources totaled $12.6 M in FY 2023 and is likely to increase under the provisions of this bill. [See
SB 15 3 Explanation of State Expenditures].
(Revised) Military Service Income Tax Provisions: The state may experience a minor reduction in General
Fund revenue from individual income tax collections. The bill makes members of the Space Force eligible
for the state income tax exemption for military pay. Prior to tax year 2024, the exemption is for up to $5,000
of income. Beginning in tax year 2024, all active duty, reserve and National Guard military pay is exempt
from state income tax. The bill would also allow taxpayers to receive up to a 100% deduction for military
retirement income or survivor’s benefits received due to service in the Space Force. Any impact to state
revenues is expected to be minor.
Explanation of Local Expenditures: (Revised) Statutory References to Armed Forces and Uniformed
Services: Provisions of this bill affect leaves of absence for elected officials who are called to active duty
and county-funded burial allowances (capped at $1,000). Some agencies will need to amend administrative
forms and processes to be inclusive of USSF personnel. These provisions may cause minor increases in local
expenditures but are within each local unit’s routine administrative functions and should be able to be
implemented with no additional appropriations, assuming near customary agency staffing and resource levels.
(Revised) School Absences: The governing bodies of schools will have to amend policies regarding
authorized absences of high school students who are ordered to active duty in the armed forces. This
requirement is within the routine administrative functions of these bodies and should be able to be
implemented with no additional appropriations, assuming near customary agency staffing and resource levels.
Local Units: Local units with more than 50 employees would be required to print and display the posters.
Explanation of Local Revenues: (Revised) Military Service Income Tax Deductions: If additional
taxpayers claim military service income tax deductions due to service in or retirement from the Space Force,
taxable income will decrease. Counties imposing a local income tax (LIT) could potentially experience a
minor decrease in revenue from this tax. Any impact is expected to be minor.
State Agencies Affected: Department of Labor; Indiana Department of Veterans’ Affairs; Commission for
Higher Education; state educational institutions; Indiana Veterans’ Home; Department of State Revenue,
Bureau of Motor Vehicles; Department of Health; Office of the Attorney General; Civil Rights Commission;
state educational institutions; all state agencies.
Local Agencies Affected: Public schools, elected officials, county auditors, local units with more than 50
employees.
Information Sources: Ambat Babu, Indiana Department of Labor; Anthony Weber, IDVA; IDVA
Annual Reports, https://www.in.gov/dva/programs-and-services2/the-commission/annual-reports/;
https://www.in.gov/dol/publications/; US Department of Veterans Affairs VETPOP2020
dataset,https://www.va.gov/vetdata/veteran_population.asp, LSA Handbook of Taxes, Revenue and
Appropriations, FY 2023; Defense Manpower Data Center September 2023 Location Report,
https://dwp.dmdc.osd.mil/dwp/app/dod-data-reports/workforce-reports
Fiscal Analyst: Alexander Raggio, 317-234-9485; Nate Bodnar, 317-234-9476; Camille Tesch, 317-232-
5293.
SB 15 4