LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7158 NOTE PREPARED: Apr 3, 2025
BILL NUMBER: HB 1326 BILL AMENDED: Apr 3, 2025
SUBJECT: Scholarships.
FIRST AUTHOR: Rep. Heine BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Sen. Brown L
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill provides that a scholarship granting organization must
include certain information in its annual public report to the Department of Education. It also provides that
applicants enrolled in a transition to teaching program after June 30, 2024, may qualify for certain
scholarships if the applicant is a member of a household with an annual income of not more than 400% of
the amount required for the applicant to qualify for the Federal Free or Reduced Price Lunch Program.
(Currently, the annual income threshold is $100,000 or less.) The bill permits the Commission for Higher
Education to use the remaining balance allocated to certain teaching scholarships or in certain teaching
scholarship funds to fund additional specified teaching scholarships.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Eligibility for Transition to Teaching Scholarships: This bill changes
the household income limit for prospective applicants from $100,000 to 400% of the Federal Free or Reduced
Price Lunch Program. This is likely to increase the number of scholarship applicants and the number of
awards made under this program. [No more than $1 M of Next Generation Hoosier Educators Scholarship
(Next Gen) funding is to be used to provide Transition to Teaching scholarships unless excess money
remains in the Next Gen fund once scholarships have been awarded.]
Utilization of Scholarship Funds: This bill provides that, once the CHE has awarded scholarships under the
Next Generation Hoosier Educators Scholarship, William A. Crawford Minority Teacher Scholarship,
Student Teaching Scholarship for High-Need Fields, and Earline S. Rogers Student Teaching Scholarship
for Minorities programs, any remaining money in a given fund may be used to award additional scholarships
in the other programs named. This is likely to increase total expenditures on scholarships by the state, though
any increase in expenditures will be limited by the amount of money appropriated in the biennium and the
amount of money that would not have been spent under current law.
Rogers and High-Needs Scholarship funds are reverting, so unspent money reverts to the General Fund at
the end of the biennium. CHE expects the Rogers scholarship to exhaust funding before the end of FY 2025,
but the High Needs fund is on track to revert approximately $40,000. This bill would allow excess High
HB 1326 1 Needs money to be spent on Rogers scholarships in future biennia, increasing program spending and
decreasing reversions.
The Crawford fund is non-reverting but is anticipated to expend all appropriated money by the end of the
biennium.
CHE estimates approximately $4.7 M in unspent money in the Next Gen fund at the end of FY 2025, though
much of this is earmarked to support the expansion of Next Gen to allow up to four years of utilization per
student. It is unlikely that CHE would authorize additional expenditures from the Next Gen fund beyond an
amount that allows sustained expenditures on the Next Gen program.
(Revised) Scholarship Granting Organizations (SGO): The bill adds to the current reporting requirements
for SGOs to provide the total dollar amount remaining and available to be used for scholarships. Any change
to the public report posted by the Indiana Department of Education can be accommodated with existing
resources.
Additional Information - In FY 2024, SGOs received about $31 M in donations, which were used to provide
a total of $23 M in scholarships to 12,517 students. Current SGO reports can be found online at:
https://www.in.gov/doe/students/indiana-choice-scholarship-program/school-scholarships/
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education.
Local Agencies Affected:
Information Sources: Department of Education;
https://www.federalregister.gov/documents/2024/02/20/2024-03355/child-nutrition-programs-income-eli
gibility-guidelines
Fiscal Analyst: Alexander Raggio, 317-234-9485; Austin Spears, 317-234-9454.
HB 1326 2