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 6927 NOTE PREPARED: Jan 29, 2024 BILL NUMBER: SB 212 BILL AMENDED: Jan 29, 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 XDEDICATED XFEDERAL Summary of Legislation: (Amended) Indiana School for the Blind and Visually Impaired: This bill provides that the Indiana School for the Blind and Visually Impaired Board shall give preference to a candidate for the chief executive officer position who meets the qualifications for an Indiana teacher's certificate in the area of visual impairment disabilities, but shall not require a candidate for the chief executive officer position to meet the qualifications for an Indiana teacher's certificate in the area of visual impairment disabilities. Indiana School for the Deaf: This bill also provides that, subject to approval by the Indiana School for the Deaf Board, the Indiana School for the Deaf may partner with an existing nonprofit corporation to benefit the purposes of the school. Superintendent Contracts: The bill provides that the public meeting that must be held before a contract for employment is entered into by a governing body and a school superintendent may take place at a regular or special meeting of the governing body and does not have to happen at least seven days before the contract is entered into. The bill also provides that if only one new member is elected to the board of the governing body, a governing body may enter into a contract with a superintendent after the election. Three-Cueing: This bill prohibits a teacher preparation program from using curriculum or content that is based on the three-cueing model. COVID-19 Relief Programs: The bill amends the Student Learning Recovering Grant Program and Fund. It also amends the Indiana Student Enrichment Grant Program. Primetime Program: It repeals the Primetime Program. It also repeals provisions regarding the Primetime SB 212 1 Program. Micro-credential: The bill requires the Department of Education to establish criteria for determining whether a credential qualifies as a micro-credential. Effective Date: Upon passage; July 1, 2024. Explanation of State Expenditures: Indiana School for the Deaf (ISD): ISD may experience a workload [and/or expenditure] increase to partner with a nonprofit corporation. COVID-19 Relief Programs: Under this bill, two programs aimed at reducing COVID-19 related learning loss will no longer expire in FY 2026. This represents a workload increase for the Department of Education (DOE) who will be required to continue administering the programs, including preparing an annual report for the 1008 Grant Program. These provisions are not expected to increase total expenditures unless more funds are appropriated into the program. Micro-credentials: Micro-credentials are defined under this bill and DOE is required to establish the criteria for determining whether a credential received by a K-12 student qualifies as a micro-credential. DOE, in partnership with All4Ed and BloomBoard, established a pilot program in FY 2023 in which four participating public high schools will award micro-credentials to their students. Public schools and community programs have also used JobReady Indy’s badge system to award students with proof that they have received training in certain soft skills. To the extent that DOE can draw from these or similar programs, any increase to the agency’s workload due to this provision may be reduced. State Educational Institutions (SEIs): SEIs whose teacher preparation programs instruct teacher candidates in the three-cueing model will experience a minor workload increase to change their curriculum. Additionally, SEIs that received 1008 Grants to provide educational services will have additional time to expend funds that have already been obligated. [SEIs receive state funding through General Fund appropriations.] Additional Information - COVID-19 Relief Programs: The 1008 Grant Program and Indiana Learns are no longer set to expire under this bill. $150 M was initially appropriated in FY 2021 and an additional $16 M of state ESSER funds were appropriated to the 1008 Grant Program. The program provided grants to eligible educational entities that provided in-person learning recovery services to students. As of the end of FY 2023, approximately $47 M has been obligated but not yet distributed to eligible entities. Indiana Learns is a statewide grant program that awards $1,000 to qualifying families to provide approved high-dosage mathematics and english/language arts tutoring to certain elementary students. Funds are deposited into an account that families use to make payments towards qualified expenses. The bill repeals statutes that: (1) Allowed only federal funds to award grants through the program; (2) Prohibited additional grants to be awarded through the program after ESSER funds appropriated to Indiana Learns is exhausted; and (3) Expired all Indiana Learns accounts on October 1, 2024. As of January 2024 the Indiana Learns program still has nearly $100,000 in unobligated funds, and SB 212 2 approximately $7 M that has already been deposited into Indiana Learns Accounts has not yet been spent. Explanation of State Revenues: SEIs: If additional funds are appropriated to the 1008 Grant Program, SEIs may have additional funding opportunities to receive grants from the program. Explanation of Local Expenditures: COVID-19 Relief Programs: Public schools who receive 1008 Grants to provide educational services will have additional time to expend funds that have already been obligated. Public schools are also no longer required to provide matching federal funds as a requirement to receive 1008 Grants. Explanation of Local Revenues: COVID-19 Relief Programs: Indiana Learns participants will have extra time to expend funds that they have already received. To the extent that this allows more students to participate in a tutoring program through an approved public school, school revenue may increase. Public schools may also have additional funding opportunities if additional funds are appropriated to the 1008 Grant Program or Indiana Learns. State Agencies Affected: Department of Education; Indiana School for the Visually Impaired; Indiana School for the Deaf; state educational institutions. Local Agencies Affected: Public schools. Information Sources: JobReady Indy, https://www.jobreadyindy.org/badges.html; Department of Education Micro-credential Pilot, https://www.in.gov/doe/about/news/indiana-department-of-education-announces-employability-skills-gra nt-recipients,-additional-resources/; Department of Education, 2023 Student Learning Recovery Grant Report. https://s3.us-east-2.amazonaws.com/iga-publications/agency_report/2023-11-02T15-39-58.912Z-2023%2 0-%20Student%20Learning%20Recovery%20Grant%20Report.pdf; Indiana Learns, https://www.indianalearns.org/. Fiscal Analyst: Kelan Fong, 317-232-9592. SB 212 3