LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6763 NOTE PREPARED: Feb 6, 2025
BILL NUMBER: HB 1203 BILL AMENDED:
SUBJECT: Reservist Tuition Supplement Program.
FIRST AUTHOR: Rep. McGuire BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes the Reservist Tuition Supplement Program (RTSP) Fund. It
requires the Commission for Higher Education to administer the fund and use money in the fund to award
scholarships to eligible applicants.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Reservist Tuition Supplement Program: This bill establishes the RTSP
and fund to provide scholarships to Indiana residents who serve in the reserve components of the U.S. Armed
Forces. The RTSP mirrors the National Guard Supplemental Grant (NGSG) and will be administered by the
Commission for Higher Education (CHE). Assuming similar appropriations and utilization rates by reservists
as historically observed in the National Guard, this bill will provide an estimated $1.5 M in grants to
approximately 320 reservists per year when fully implemented. If money is appropriated to the fund,
expenditures are estimated to be $385,000 in FY 2026 and $770,000 in FY 2027. This bill specifies that the
fund is non-reverting. The bill does not make an appropriation.
Commission for Higher Education: The RTSP Fund will be administered by CHE, with administrative costs
paid out of the fund. These provisions will create a workload increase for CHE and existing staffing and
resource levels, if currently being used to capacity, may be insufficient for full implementation, but any
additional resources will not require a separate appropriation. [Administering the RTSP will be more complex
than administering the NGSG because the Indiana National Guard is a state entity and the reserve
component of each service is administered separately. CHE will have to interface with five different federal
entities to implement this program.]
Explanation of State Revenues: State Educational Institutions – Approximately 98% of new RTSP
recipients are likely to attend state educational institutions (SEIs) each year. Tuition revenue is retained by
SEIs. Any change in SEI revenue will depend on admissions and attendance rates at each SEI. [SEIs receive
General Fund appropriations].
Explanation of Local Expenditures:
HB 1203 1 Explanation of Local Revenues:
State Agencies Affected: State educational institutions; Commission for Higher Education.
Local Agencies Affected:
Information Sources: Josh Garrison, Commission for Higher Education; Integrated Postsecondary
Education Data System.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1203 2