Introduced Version
HOUSE BILL No. 1258
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-28-9-28.
Synopsis: Teacher compensation. Provides that, after June 30, 2026,
a school corporation shall expend an amount for teacher compensation
that is not less than an amount equal to 70% (instead of 62%) of the
state tuition support distributed to the school corporation during the
state fiscal year. Makes conforming changes.
Effective: July 1, 2025.
Klinker
January 9, 2025, read first time and referred to Committee on Education.
2025 IN 1258—LS 6877/DI 110 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1258
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 20-28-9-28, AS AMENDED BY P.L.150-2024,
2 SECTION 26, AND AS AMENDED BY P.L.136-2024, SECTION 43,
3 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
4 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
5 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
6 Sec. 28. (a) Subject to subsection (g), (d), for each school year in a
7 state fiscal year beginning after June 30, 2023, a school corporation
8 shall expend an amount for teacher compensation that is not less than
9 an amount equal to sixty-two percent (62%) of the state tuition support,
10 other than the state tuition support described in subsection (b), (c),
11 distributed to the school corporation during the state fiscal year. For
12 purposes of determining whether a school corporation has complied
13 with this requirement, the amount a school corporation expends for
14 teacher compensation shall include the amount the school corporation
15 expends for adjunct teachers, supplemental pay for teachers, stipends,
16 and for participating in a special education cooperative or an interlocal
17 agreement or consortium that is directly attributable to the
2025 IN 1258—LS 6877/DI 110 2
1 compensation of teachers employed by the cooperative or interlocal
2 agreement or consortium. The amount a school corporation expends on
3 teacher compensation shall also include the amount the school
4 corporation expends on dropout recovery educational services for an
5 at-risk student enrolled in the school corporation provided by an
6 agreement with an eligible school that is directly attributable to the
7 compensation of teachers employed by the eligible school. Teacher
8 benefits include all benefit categories collected by the department for
9 Form 9 purposes. This subsection expires July 1, 2026.
10 (b) If a school corporation determines that the school corporation
11 cannot comply with the requirement under subsection (a) for a
12 particular school year, the school corporation shall apply for a waiver
13 from the department.
14 (c) The waiver application must include an explanation of the
15 financial challenges, with detailed data, that preclude the school
16 corporation from meeting the requirement under subsection (a) and
17 describe the cost saving measures taken by the school corporation in
18 attempting to meet the requirement in subsection (a). The waiver may
19 also include an explanation of an innovative or efficient approach in
20 delivering instruction that is responsible for the school corporation
21 being unable to meet the requirement under subsection (a).
22 (d) If, after review, the department determines that the school
23 corporation has exhausted all reasonable efforts in attempting to meet
24 the requirement in subsection (a), the department may grant the school
25 corporation a one (1) year exception from the requirement.
26 (e) A school corporation that receives a waiver under this section
27 shall work with the department to develop a plan to identify additional
28 cost saving measures and any other steps that may be taken to allow
29 the school corporation to meet the requirement under subsection (a).
30 (f) A school corporation may not receive more than three (3)
31 waivers under this section.
32 (b) Subject to subsection (d), for each school year in a state
33 fiscal year beginning after June 30, 2026, a school corporation shall
34 expend an amount for teacher compensation that is not less than an
35 amount equal to seventy percent (70%) of the state tuition support,
36 other than the state tuition support described in subsection (c),
37 distributed to the school corporation during the state fiscal year.
38 For purposes of determining whether a school corporation has
39 complied with this requirement, the amount a school corporation
40 expends for teacher compensation shall include the amount the
41 school corporation expends for adjunct teachers, supplemental pay
42 for teachers, stipends, and for participating in a special education
2025 IN 1258—LS 6877/DI 110 3
1 cooperative or an interlocal agreement or consortium that is
2 directly attributable to the compensation of teachers employed by
3 the cooperative or interlocal agreement or consortium. The
4 amount a school corporation expends on teacher compensation
5 shall also include the amount the school corporation expends on
6 dropout recovery educational services for an at-risk student
7 enrolled in the school corporation provided by an agreement with
8 an eligible school that is directly attributable to the compensation
9 of teachers employed by the eligible school. Teacher benefits
10 include all benefit categories collected by the department for Form
11 9 purposes.
12 (b) (c) State tuition support distributed to a school corporation for
13 students enrolled in the school corporation who are receiving one
14 hundred percent (100%) virtual instruction from a teacher employed
15 by a third party provider with whom the school corporation has
16 contracted is not included as state tuition support distributed to the
17 school corporation for purposes of subsection (a) (before its
18 expiration) or (b).
19 (g) (d) For purposes of determining whether a school corporation
20 has complied with the requirement in subsection (a) (before its
21 expiration) or (b), distributions from the curricular materials fund
22 established by IC 20-40-22-5 that are deposited in a school
23 corporation's education fund in a state fiscal year are not considered
24 to be state tuition support distributed to the school corporation during
25 the state fiscal year.
26 (c) (h) (e) Before November 1, 2022, and Before November 1 of
27 each year, thereafter, the department shall submit a report to the
28 legislative council in an electronic format under IC 5-14-6 and the state
29 budget committee that contains information as to:
30 (1) the percent and amount that each school corporation expended
31 and the statewide total expended for teacher compensation;
32 (2) the percent and amount that each school corporation expended
33 and statewide total expended for teacher benefits, including
34 health, dental, life insurance, and pension benefits; and
35 (3) whether the school corporation met the requirement set forth
36 in subsection (a) (before its expiration) or (b). and
37 (4) whether the school corporation received a waiver under
38 subsection (d).
39 (d) (f) The department shall publish the report described in
40 subsection (c) (e) on the department's website.
41 (e) (g) Beginning after June 30, 2024, for each state fiscal year that
42 a school corporation fails to expend the amount for teacher
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1 compensation as required under subsection (a) (before its expiration)
2 or (b), the department shall submit in both a written and an electronic
3 format a notice to the school corporation's:
4 (1) superintendent;
5 (2) school business officer; and
6 (3) governing body;
7 that the school corporation failed to meet the requirements set forth in
8 subsection (a) (before its expiration) or (b) for the applicable state
9 fiscal year.
10 (f) (h) If a school corporation's governing body receives a notice
11 from the department under subsection (e), (g), the school corporation
12 shall do the following:
13 (1) Publicly acknowledge receipt of the notice from the
14 department at the governing body's next public meeting.
15 (2) Enter into the governing body's official minutes for the
16 meeting described in subdivision (1) acknowledgment of the
17 notice.
18 (3) Not later than thirty (30) days after the meeting described in
19 subdivision (1), publish on the school corporation's website:
20 (A) the department's notice; and
21 (B) any relevant individual reports prepared by the
22 department.
23 (g) (i) If the department determines a school corporation that
24 received one (1) or more notices from the department under subsection
25 (e) (g) has met the expenditure requirements required under subsection
26 (a) (before its expiration) or (b) for a subsequent state fiscal year, the
27 school corporation may remove from the school corporation's website
28 any:
29 (1) notices the school corporation received under subsection (e);
30 (g); and
31 (2) relevant individual reports prepared by the department under
32 subsection (f)(3). (h)(3).
2025 IN 1258—LS 6877/DI 110