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 6837 NOTE PREPARED: Feb 5, 2024 BILL NUMBER: SB 211 BILL AMENDED: Feb 5, 2024 SUBJECT: Various Education Matters. FIRST AUTHOR: Sen. Raatz BILL STATUS: 2 nd Reading - 1 st House FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: This bill requires the Department of Education to establish a Civics Seal Program (program) and make certain determinations concerning the program. The bill also defines a "charter school corporation". It prohibits formal collective bargaining between a school corporation and the exclusive representative from beginning before October 1. Effective Date: July 1, 2024. Explanation of State Expenditures: Civics Seals Program: Beginning in FY 2025, provisions in the bill require the Department of Education to establish the Civics Seals Program that will recognize schools, teachers, and students for excellence in civics. The bill’s requirements are within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Indiana Education Employment Relations Board (IEERB): The bill moves the start of formal collective bargaining from September 15 to October 1 and will shift the timeline for other collective bargaining processes by 16 days. This may lead to fewer settlements during mediation and ultimately more factfinding cases. To the extent this occurs, IEERB workload and/or expenditures may increase. The workload and/or expenditure increase, if any, is expected to be minimal. Additional Information: If an impasse occurs during the collective bargaining process and a mediator or a factfinder is required, IEERB is responsible for paying the cost for travel and mileage for the mediator or factfinder. IEERB will also be responsible for any costs associated with a financial consultant if IEERB appoints a financial consultant to assist the factfinder. In FY 2022 and 2023, 7 cases were assigned a mediator and 0 cases required a factfinder. SB 211 1 Explanation of State Revenues: Explanation of Local Expenditures: (Revised) Charter Schools: Certain charter schools could experience a minor workload decrease under the bill. A charter school corporation is defined under this bill as a collection of charter schools operated by the same organizer under a single charter. Beginning in FY 2025, charter school corporations under this bill would no longer be required to maintain separate accountings of all funds received and disbursed by each charter school it holds. School Corporations: If the bill’s provisions result in fewer settlements during mediation and more cases requiring a factfinder during the collective bargaining process, school corporations may experience a minor increase in expenditures. If an impasse is declared, the school corporation and the collective bargaining unit equally share the costs associated with mediation and factfinding. The average cost for mediation in FY 2022 and FY 2023 was approximately $1,550. There were no cases requiring a factfinder in FY 2022 and FY 2023, but the current rate for a factfinder is $160 per hour. Explanation of Local Revenues: State Agencies Affected: Department of Education; Indiana Education Employment Relations Board. Local Agencies Affected: School corporations who conduct collective bargaining negotiations; charter school corporations. Information Sources: Indiana Education Employment Relations Board, FY 2022 and FY 2023 Annual Report. https://secure.in.gov/ieerb/files/FY-22-Report-REVISED.pdf; https://www.in.gov/ieerb/files/FY2023-Annual-Report-FINAL.pdf. Fiscal Analyst: Kelan Fong, 317-232-9592. SB 211 2