LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7471 NOTE PREPARED: Jan 23, 2025
BILL NUMBER: SB 146 BILL AMENDED: Jan 23, 2025
SUBJECT: Teacher Compensation.
FIRST AUTHOR: Sen. Rogers BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State and Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) Report: This bill requires the Department of Education to submit a
report to the General Assembly before November 1, 2025, that provides an analysis of the feasibility and cost
of increasing school corporation employee health plan options.
Indiana Teacher Recruitment Program and Fund: The bill creates the Indiana Teacher Recruitment Program
and Fund.
Paid Leave: It provides 20 days of paid leave for a full-time teacher employed by a school corporation and
10 days of paid leave for a part-time teacher employed by a school corporation upon: (1) the birth of the
teacher's child; (2) the birth of a child to the teacher's spouse; (3) the placement of a child for adoption with
the teacher; or (4) the stillbirth of the teacher's child.
Teacher Preparation: The bill also removes a prohibition on ranking teacher preparation programs.
Teacher Compensation: Beginning June 30, 2025:
(1) The bill increases the minimum salary for a teacher employed by a school corporation
to $45,000 (current law requires $40,000); and
(2) It requires a school corporation to expend an amount for teacher compensation that is
not less than 65% of state tuition support (current law requires 62%).
Incentivization Grants: The bill changes the name of the "Teacher Appreciation Grant" to the "Teacher
Incentivization Grant". It amends the requirements regarding the Teacher Incentivization Grant.
Interstate Teacher Mobility Compact: The bill joins the Interstate Teacher Mobility Compact.
Effective Date: June 29, 2025; July 1, 2025.
Explanation of State Expenditures: Interstate Teacher Mobility Compact: Joining the Interstate Teacher
SB 146 1 Mobility Compact, a multi-state agreement to facilitate the mobility of teachers across the member states by
removing potential barriers to employment and licensure, would require additional workload and resources
for the Department of Education (DOE) and the State Board of Education. Costs may include an interstate
compact member fee or annual assessment charged on behalf of the Interstate Teacher Mobility Compact
Commission. Compact member state responsibilities include defining eligible licenses and career and
technical education licenses that the member state is willing to consider for equivalency under this new
compact. This may include changes to testing or course equivalency requirements for out-of-state teachers.
To the extent Indiana has already established interstate agreements facilitated by the National Association
of State Directors of Teacher Education and Certification (NASDTEC), increases to workload and expenses
may be mitigated. Ultimately, the source of funds and resources required to satisfy the requirements of this
bill will depend on legislative and administrative actions.
Indiana Teacher Recruitment Program and Fund: The bill establishes the Indiana Teacher Recruitment
Program to award grants to training and recruitment programs for teachers in critical shortage areas. It also
establishes the Indiana Teacher Recruitment Fund, consisting of appropriations from the General Assembly,
gifts, grants from private entities, and federal grants. The DOE will administer the program and fund. The
bill does not make an appropriation to the program or fund.
Teacher Incentivization Grants: The bill modifies the Teacher Appreciation Grant and names it the Teacher
Incentivization Grant. Under the bill, virtual charter schools would not receive funding. Other public schools
would receive the same $37.50 per ADM under the bill that they would under current law. Removing virtual
charter schools from the eligibility for the grant could decrease state expenditures by $300,000 to $340,000
annually, but any impact is dependent upon the appropriation made for the grant.
(Revised) DOE Report: The bill’s requirement that DOE complete a report by November 1, 2025 regarding
the feasibility and cost of increasing school corporation employee health plan options would be completed
with existing staff and resources.
Additional Information: Current interstate reciprocity agreements are in place to allow for out-of-state
teachers to seek licensure based on testing and course equivalency standards as determined by a receiving
state. Indiana has reciprocal agreements in place that may still require additional testing related to content
areas or coursework after a provincial license has been granted to an out-of-state teacher. The compact aims
to establish more uniform licensure requirements to minimize the need for teachers to seek additional course
work and testing when seeking employment across state lines. Any changes to current requirements in
Indiana may reduce participation in teacher preparation course work and/or minimize additional testing.
Explanation of State Revenues: Interstate Teacher Mobility Compact: DOE collects a $36.72 Indiana
Teacher Licensing fee for initial certification and renewal, duplications, evaluations of licenses or
out-of-state transcripts, addition or deletion of license areas, conversion to professional licenses, permits, and
degree changes. Out-of-state teachers applying for a license are charged an additional $36.72 evaluation fee.
All fees from teacher licenses are deposited into the Professional Standards Fund. To the extent any newly
established uniform requirements allow for more initial licenses to be granted rather than provincial
(one-year temporary reciprocal permits), licensing fees may be reduced. DOE reported 234 reciprocal
licenses during the 2021-2022 school year.[See Explanation of State Expenditures].
Explanation of Local Expenditures: Paid Leave: This bill will require school corporations to offer paid
parental leave for employees. Assuming school corporations do not currently offer the paid parental leave
required by the bill, statewide school corporation expenditures could increase by $4 M to $5 M annually to
SB 146 2 pay for substitute teachers. The policy will also create a small workload increase for school administrators,
but any increase should be within the routine administrative functions of the school. The bill's provisions may
also improve teacher recruitment and retention, which may decrease expenditures associated with faculty
turnover.
Interstate Teacher Mobility Compact: If the number of teachers with valid licenses increases as a result of
the bill's provisions, public schools may be able to fill vacant positions. [See Explanation of State
Expenditures].
Minimum Teacher Salary: The bill will require more school corporations to submit a report to the DOE
explaining the school corporation’s inability to meet the minimum threshold requirement, which the bill
increases from $40,000 to $45,000. Using data school corporations submitted to DOE with salary and
position information, LSA estimates that in FY 2024, of the 281 school corporations that reported salary data,
221 had minimum salaries at or above $40,000, while 44 had a minimum salary at or above $45,000.
State Tuition Support and Teacher Compensation: Beginning in FY 2026, this bill requires school
corporations to expend at least 65%, instead of 62%, of their state tuition support revenue on compensation
for teachers. According to DOE’s 2024 Annual Teacher Compensation Report, 214 out of 290 school
corporations met the 62% requirement, while 150 school corporations would have met the 65% requirement.
School corporations that do not meet the requirement must publish onto their website and discuss at their
next public meeting that the school was unable to meet the teacher compensation threshold.
Explanation of Local Revenues: Teacher Incentivization Grants: Virtual charter schools would experience
a revenue decrease, as they could receive Teacher Appreciation Grants under current law but not Teacher
Incentivization Grants under the bill. Other public schools would receive the same $37.50 per ADM under
the bill that they would under current law.
State Agencies Affected: Office of Educator Licensing and Development, Department of Education; State
Board of Education.
Local Agencies Affected: Public schools.
Information Sources: LSA Education Database.
DOE 2024 Annual Teacher Compensation Report:
https://iga.in.gov/publications/agency_report/2024%20Annual%20Report%20-%20Teacher%20Compen
sation%20Report.pdf
Legislative Services Agency: Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2023;
National Center for Interstate Compacts: https://teachercompact.org;
National Association of State Directors of Teacher Education and Certification:
https://www.nasdtec.net/page/Interstate;
Department of Education: 2021-2022 Annual Licensing Report,
https://www.in.gov/doe/files/2022-annual-report-educator-licensing-fy-2022.pdf.
Fiscal Analyst: Austin Spears, 317-234-9454.
SB 146 3