LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7449 NOTE PREPARED: Jan 6, 2025 BILL NUMBER: HB 1201 BILL AMENDED: SUBJECT: Education Matters. FIRST AUTHOR: Rep. Behning BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: Reports: This bill requires the Department of Education (DOE) to do the following: (1) Create a list of best practices for student discipline and to reduce chronic absenteeism. (2) Study and submit certain reports and recommendations regarding: (A) Excused absences and unexcused absences; and (B) Suspensions and expulsions categories. Next Generation High School Success Grant Program: The bill establishes the Indiana next Generation High School Success Grant Program and Fund and requires DOE to administer the program and fund. School Attendance: This bill requires public schools to use DOE’s early warning dashboard and take appropriate intervention measures regarding students with attendance issues. The bill requires a public school to hold an attendance conference not later than 10 instructional days (instead of five instructional days) after the student's fifth absence. It prohibits a public school from expelling or suspending a student solely because the student is chronically absent or a habitual truant. Effective Date: July 1, 2025. Explanation of State Expenditures: Next Generation High School Success Grant Program: The bill establishes the Next Generation High School Success Grant Program in FY 2026, but does not appropriate funds for the program. Dependent on the amount of funding allocated to the program, expenditures would increase. The Department of Education (DOE) will also experience a workload increase to administer the program. Department of Education: DOE will experience a workload increase to adhere to the bill’s requirements regarding student discipline and attendance. This includes a requirement to prepare and submit two reports in FY 2026. 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. HB 1201 1 Explanation of State Revenues: Explanation of Local Expenditures: Next Generation High School Success Grant Program: Public high schools could experience a workload increase to apply for and adhere to Next Generation High School Success Grant Program’s requirements. Dependent on state and legislative actions, these expenditures may be offset by the amount awarded to schools through the Next Generation High School Success Grant Program. School Attendance: The bill will decrease the administrative workload for public schools by providing schools additional time to organize an attendance conference. This impact will be partially offset by a requirement for public schools to utilize DOE’s Early Warning Dashboard. Explanation of Local Revenues: The bill establishes the Next Generation High School Success Grant Program in FY 2026. Public schools who are awarded a grant from the program will experience a revenue increase. [See Explanation of Local Expenditures.] State Agencies Affected: Department of Education. Local Agencies Affected: Public schools. Information Sources: Fiscal Analyst: Kelan Fong, 317-232-9592. HB 1201 2