LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6942 NOTE PREPARED: Feb 10, 2025
BILL NUMBER: HB 1172 BILL AMENDED: Feb 6, 2025
SUBJECT: Office of Entrepreneurship and Innovation.
FIRST AUTHOR: Rep. Teshka BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill establishes the Office of Entrepreneurship and Innovation.
The bill requires the Office of Entrepreneurship and Innovation to:
(1) develop and administer programs to support the growth of small business, entrepreneurship, and
innovation in Indiana;
(2) direct and oversee programs and sources of funding related to the growth of small business,
entrepreneurship, technology, and innovation in Indiana;
(3) work to strengthen policies and programs supporting the growth of entrepreneurship in Indiana;
(4) coordinate with state agencies and other state funded entities to align services and programs
related to entrepreneurship and starting and scaling a business;
(5) work with funded entities on identifying strategies and metrics around the disbursement of funds
to measure funds reaching rural communities and other underrepresented socioeconomic
communities;
(6) work with stakeholders and organizations supporting entrepreneurship to enhance learning and
skills, provide technical support, and expand access to resources for entrepreneurs across Indiana;
and
(7) develop and administer programs to support and encourage youth entrepreneurship, including
supporting students and teachers in fostering entrepreneurial skills.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Summary - Establishing the Office of Entrepreneurship and Innovation
is estimated to increase General Fund expenditures by approximately $1.8 M for staff salaries and fringe
benefits in FY 2026, with these costs estimated to increase to $1.9 M in FY 2027. The bill does not
appropriate funds for the programs the agency will manage. Estimated costs can be reduced to the extent the
Office of Entrepreneurship and Innovation works in conjunction with the Indiana Economic Development
Corporation (IEDC) to utilize vacant staff positions or unexpended appropriations.
HB 1172 1 Additional Information - The State of Illinois currently maintains an Office of Entrepreneurship and
Innovation. Over the past five fiscal years, the Office has averaged annual expenditures of $28.4 M per year
and maintained an average of approximately 23 full time equivalent positions. These annual costs include
salary and benefits as well as expenditures on developing and administering programs to promote small
businesses, innovation, and entrepreneurship in the state of Illinois.
Assuming the difference between Illinois’ General Fund expenditures compared to Indiana, establishing an
Indiana Office of Entrepreneurship and Innovation is expected to require 10 full time equivalent positions.
As of December 2024, the IEDC maintained six vacant positions (that were not for interns), valued at
approximately $882,000 in annual salary. Using the salary for these positions as a baseline, annual personnel
costs (salary and fringe benefits) for these 10 positions are estimated to be $1.8 M in FY 2026 and $1.9 M
in FY 2027.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: IEDC.
Local Agencies Affected:
Information Sources: Illinois Comptroller Database; December 2024 Staffing Report; FY 2024 Reversion
Data.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1172 2