LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6338 NOTE PREPARED: Nov 21, 2024 BILL NUMBER: SB 189 BILL AMENDED: SUBJECT: School Buildings. FIRST AUTHOR: Sen. Dernulc BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: This bill provides that the governing body of the School City of Hammond school corporation is exempt from compliance with certain requirements concerning the Gavit High School building. Effective Date: July 1, 2025. Explanation of State Expenditures: Current law requires certain school buildings, including closed or underutilized schools, to be offered to State Educational Institutions (SEIs) and charter schools for $1. Provisions in this bill exempt the School City of Hammond from this statute beginning in FY 2026 with regards to the Gavit High School building which ceased instructional operations in FY 2021. The bill would also allow the School City of Hammond to sell or lease the Gavit High School building to an entity other than an SEI or charter school. If an SEI was interested but unable to purchase or lease the Gavit High School building for $1 as allowed under this bill, expenditures for an SEI could increase if it is unable to purchase or lease another covered school building for $1. [SEIs receive state funding through General Fund appropriations.] Explanation of State Revenues: Explanation of Local Expenditures: If a charter school was interested but unable to purchase or lease the Gavit High School building for $1, expenditures for the charter school could increase if it is unable to purchase or lease another covered school building for $1. [See Explanation of State Expenditures.] Explanation of Local Revenues: The bill no longer requires the School City of Hammond to offer the Gavit High School Building to an SEI or charter school for $1. The school corporation may also experience a revenue increase if it sells or leases the building for more than $1 as allowed under the bill. [See Explanation of State Expenditures.] State Agencies Affected: State educational institutions. SB 189 1 Local Agencies Affected: School City of Hammond; Charter schools. Information Sources: Fiscal Analyst: Kelan Fong, 317-232-9592. SB 189 2 SB 189 3