Introduced Version
SENATE BILL No. 249
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-28-9-1.5; IC 20-29-6-12.5.
Synopsis: Teacher compensation. Amends provisions that allow
school corporations to provide a supplemental payment to teachers in
excess of the salary specified in the school corporation's compensation
plan. Makes corresponding changes.
Effective: July 1, 2025.
Deery
January 13, 2025, read first time and referred to Committee on Education and Career
Development.
2025 IN 249—LS 6854/DI 120 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.
SENATE BILL No. 249
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 20-28-9-1.5, AS AMENDED BY P.L.170-2023,
2 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 1.5. (a) This subsection governs salary increases
4 for a teacher employed by a school corporation. Compensation
5 attributable to additional degrees or graduate credits earned before the
6 effective date of a local compensation plan created under this chapter
7 before July 1, 2015, shall continue for school years beginning after
8 June 30, 2015. Compensation attributable to additional degrees for
9 which a teacher has started course work before July 1, 2011, and
10 completed course work before September 2, 2014, shall also continue
11 for school years beginning after June 30, 2015. For school years
12 beginning after June 30, 2022, a school corporation may provide a
13 supplemental payment to a teacher in excess of the salary specified in
14 the school corporation's compensation plan if it determines that doing
15 so is in the best interest of students. A supplement provided under
16 this subsection is not subject to collective bargaining and a school
17 corporation may exclude a portion of the revenue available for
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1 bargaining from the estimates of IC 20-29-6-12.5 for this purpose.
2 Such a supplement is in addition to any increase permitted under
3 subsection (b).
4 (b) Subject to subsection (e), increases or increments in a local
5 salary range must be based upon a combination of the following
6 factors:
7 (1) A combination of the following factors taken together may
8 account for not more than fifty percent (50%) forty percent
9 (40%) of the calculation used to determine a teacher's increase or
10 increment:
11 (A) The number of years of a teacher's experience.
12 (B) The possession of either:
13 (i) additional content area degrees beyond the requirements
14 for employment; or
15 (ii) additional content area degrees and credit hours beyond
16 the requirements for employment, if required under an
17 agreement bargained under IC 20-29.
18 (2) The results of an evaluation conducted under IC 20-28-11.5.
19 (3) The assignment of instructional leadership roles, including the
20 responsibility for conducting evaluations under IC 20-28-11.5.
21 (4) Employment in a high need area such as those identified
22 under IC 20-29-3-15(b)(27). This factor may not account for
23 less than ten percent (10%) of the calculation used to
24 determine a teacher's increase or increment.
25 (4) (5) The academic needs of students in the school corporation.
26 (c) To provide greater flexibility and options, a school corporation
27 may further differentiate the amount of salary increases or increments
28 determined for teachers. A school corporation shall base a
29 differentiated amount under this subsection on reasons the school
30 corporation determines are appropriate, which may include the:
31 (1) subject or subjects taught by a given teacher;
32 (2) importance of retaining a given teacher at the school
33 corporation;
34 (3) need to attract an individual with specific qualifications to fill
35 a teaching vacancy; and
36 (4) offering of a new program or class.
37 (d) A school corporation may provide differentiated increases or
38 increments under subsection (b), and in excess of the percentage
39 specified in subsection (b)(1), in order to:
40 (1) reduce the gap between the school corporation's minimum
41 teacher salary and the average of the school corporation's
42 minimum and maximum teacher salaries; or
2025 IN 249—LS 6854/DI 120 3
1 (2) allow teachers currently employed by the school corporation
2 to receive a salary adjusted in comparison to starting base salaries
3 of new teachers.
4 (e) A school corporation shall differentiate the amount of salary
5 increases or increments for teachers who possess a required literacy
6 endorsement under IC 20-28-5-19.7.
7 (f) Except as provided in subsection (g), a teacher rated ineffective
8 or improvement necessary under IC 20-28-11.5 may not receive any
9 raise or increment for the following year if the teacher's employment
10 contract is continued. The amount that would otherwise have been
11 allocated for the salary increase of teachers rated ineffective or
12 improvement necessary shall be allocated for compensation of all
13 teachers rated effective and highly effective based on the criteria in
14 subsection (b).
15 (g) Subsection (f) does not apply to a teacher in the first two (2) full
16 school years that the teacher provides instruction to students in
17 elementary school or high school. If a teacher provides instruction to
18 students in elementary school or high school in another state, any full
19 school year, or its equivalent in the other state, that the teacher provides
20 instruction counts toward the two (2) full school years under this
21 subsection.
22 (h) A teacher who does not receive a raise or increment under
23 subsection (f) may file a request with the superintendent or
24 superintendent's designee not later than five (5) days after receiving
25 notice that the teacher received a rating of ineffective. The teacher is
26 entitled to a private conference with the superintendent or
27 superintendent's designee.
28 (i) The Indiana education employment relations board established
29 in IC 20-29-3-1 shall publish a model compensation plan with a model
30 salary range that a school corporation may adopt.
31 (j) Each school corporation shall submit its local compensation plan
32 to the Indiana education employment relations board. For a school year
33 beginning after June 30, 2015, a local compensation plan must specify
34 the range for teacher salaries. The Indiana education employment
35 relations board shall publish the local compensation plans on the
36 Indiana education employment relations board's website.
37 (k) The Indiana education employment relations board shall review
38 a compensation plan for compliance with this section as part of its
39 review under IC 20-29-6-6.1. The Indiana education employment
40 relations board has jurisdiction to determine compliance of a
41 compensation plan submitted under this section.
42 (l) This chapter may not be construed to require or allow a school
2025 IN 249—LS 6854/DI 120 4
1 corporation to decrease the salary of any teacher below the salary the
2 teacher was earning on or before July 1, 2015, if that decrease would
3 be made solely to conform to the new compensation plan.
4 (m) After June 30, 2011, all rights, duties, or obligations established
5 under IC 20-28-9-1 before its repeal are considered rights, duties, or
6 obligations under this section.
7 (n) An employment agreement described in IC 20-28-6-7.3 between
8 an adjunct teacher and a school corporation is not subject to this
9 section.
10 SECTION 2. IC 20-29-6-12.5, AS AMENDED BY P.L.159-2020,
11 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]: Sec. 12.5. (a) Before September 15 of the first year of
13 the state budget biennium, the department shall provide the parties with
14 an estimate of the general fund (before January 1, 2019) or education
15 fund (after December 31, 2018) revenue available for bargaining in the
16 school corporation from the school funding formula.
17 (b) Within thirty (30) days after the date of the fall count of ADM
18 of the school year in the first year of the state budget biennium, the
19 department shall provide the parties with a certification of estimated
20 general fund (before January 1, 2019) or education fund (after
21 December 31, 2018) revenue available for bargaining from the school
22 funding formula. If the parties do not receive a certified estimate from
23 the department within thirty (30) days after the fall count of ADM, the
24 parties may use the school corporation's estimate of the general fund
25 (before January 1, 2019) or education fund (after December 31, 2018)
26 revenue available based on the school corporation's fall count of ADM
27 for purposes of collective bargaining. However, if the parties
28 subsequently receive the certification of estimated general fund (before
29 January 1, 2019) or education fund (after December 31, 2018) revenue
30 available for bargaining before an impasse is declared, the parties shall
31 use the certified general fund (before January 1, 2019) or education
32 fund (after December 31, 2018) revenue from the school funding
33 formula for purposes of collective bargaining. Regardless of the
34 estimate used, the school corporation may deduct a portion from
35 the estimate available for bargaining equal to any amount set aside
36 for the purposes described in IC 20-28-9-1.5(a).
37 (c) A school employer that passes a resolution under section 3(c) of
38 this chapter to consider a portion or percentage of money transferred
39 from the school employer's operations fund to the education fund as
40 education fund revenue for purposes of determining whether an
41 agreement places a school corporation in a position of deficit financing
42 must submit a copy of the resolution to the department of local
2025 IN 249—LS 6854/DI 120 5
1 government finance on or before November 1. The resolution shall
2 include:
3 (1) all transfers between the operations fund and the education
4 fund; and
5 (2) a statement regarding whether or not the transfer is for the
6 purpose of funding teacher contracts.
7 (d) The certifications or estimate described in subsection (b) must
8 be the basis for determinations throughout impasse proceedings under
9 this chapter, minus any dollar amount excluded by the corporation
10 under IC 20-28-9-1.5(a).
2025 IN 249—LS 6854/DI 120