LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7471 NOTE PREPARED: Feb 4, 2025
BILL NUMBER: SB 146 BILL AMENDED: Jan 30, 2025
SUBJECT: Teacher Compensation.
FIRST AUTHOR: Sen. Rogers BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Teshka
FUNDS AFFECTED:XGENERAL IMPACT: State and Local
XDEDICATED
FEDERAL
Summary of Legislation: Report: This bill requires the Department of Education (DOE) 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. The bill also makes an appropriation.
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%).
Effective Date: June 29, 2025; July 1, 2025.
Explanation of State Expenditures: 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 specifies that money in the fund is continuously appropriated
for the purposes of the fund, and the program and fund expire at the end of FY 2027.
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.
Explanation of State Revenues:
SB 146 1 Explanation of Local 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:
State Agencies Affected: Department 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
Fiscal Analyst: Austin Spears, 317-234-9454.
SB 146 2