*ES0249.1*
March 20, 2025
ENGROSSED
SENATE BILL No. 249
_____
DIGEST OF SB 249 (Updated March 19, 2025 10:27 am - DI 152)
Citations Affected: IC 20-28; IC 20-29.
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, Rogers, Raatz, Maxwell
(HOUSE SPONSOR — TESHKA)
January 13, 2025, read first time and referred to Committee on Education and Career
Development.
February 6, 2025, amended, reported favorably — Do Pass.
February 10, 2025, read second time, ordered engrossed. Engrossed.
February 11, 2025, read third time, passed. Yeas 39, nays 10.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Education.
March 20, 2025, amended, reported — Do Pass.
ES 249—LS 6854/DI 120 March 20, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
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.
ENGROSSED
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 when doing so is in the
15 best interest of students. A supplement provided under this subsection
16 is not subject to collective bargaining and, under IC 20-29-6-3(d), a
17 school corporation may exclude, for this purpose, a portion of the
ES 249—LS 6854/DI 120 2
1 revenue available for bargaining from education fund revenues
2 included in IC 20-29-2-6. Such a supplement is in addition to any
3 increase permitted under 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%) of the calculation
9 used to determine a teacher's increase or increment:
10 (A) The number of years of a teacher's experience.
11 (B) The possession of either:
12 (i) additional content area degrees beyond the requirements
13 for employment; or
14 (ii) additional content area degrees and credit hours beyond
15 the requirements for employment, if required under an
16 agreement bargained under IC 20-29.
17 (2) The results of an evaluation conducted under IC 20-28-11.5.
18 (3) The assignment of instructional leadership roles, including the
19 responsibility for conducting evaluations under IC 20-28-11.5.
20 (4) The academic needs of students in the school corporation,
21 including employment in a high need area such as those
22 identified under IC 20-29-3-15(b)(27). This factor may not
23 account for less than ten percent (10%) of the calculation used
24 to determine a teacher's increase or increment.
25 (c) To provide greater flexibility and options, a school corporation
26 may further differentiate the amount of salary increases or increments
27 determined for teachers. A school corporation shall base a
28 differentiated amount under this subsection on reasons the school
29 corporation determines are appropriate, which may include the:
30 (1) subject or subjects taught by a given teacher;
31 (2) importance of retaining a given teacher at the school
32 corporation;
33 (3) need to attract an individual with specific qualifications to fill
34 a teaching vacancy; and
35 (4) offering of a new program or class.
36 (d) A school corporation may provide differentiated increases or
37 increments under subsection (b), and in excess of the percentage
38 specified in subsection (b)(1), in order to:
39 (1) reduce the gap between the school corporation's minimum
40 teacher salary and the average of the school corporation's
41 minimum and maximum teacher salaries; or
42 (2) allow teachers currently employed by the school corporation
ES 249—LS 6854/DI 120 3
1 to receive a salary adjusted in comparison to starting base salaries
2 of new teachers.
3 (e) A school corporation shall differentiate the amount of salary
4 increases or increments for teachers who possess a required literacy
5 endorsement under IC 20-28-5-19.7.
6 (f) Except as provided in subsection (g), a teacher rated ineffective
7 or improvement necessary under IC 20-28-11.5 may not receive any
8 raise or increment for the following year if the teacher's employment
9 contract is continued. The amount that would otherwise have been
10 allocated for the salary increase of teachers rated ineffective or
11 improvement necessary shall be allocated for compensation of all
12 teachers rated effective and highly effective based on the criteria in
13 subsection (b).
14 (g) Subsection (f) does not apply to a teacher in the first two (2) full
15 school years that the teacher provides instruction to students in
16 elementary school or high school. If a teacher provides instruction to
17 students in elementary school or high school in another state, any full
18 school year, or its equivalent in the other state, that the teacher provides
19 instruction counts toward the two (2) full school years under this
20 subsection.
21 (h) A teacher who does not receive a raise or increment under
22 subsection (f) may file a request with the superintendent or
23 superintendent's designee not later than five (5) days after receiving
24 notice that the teacher received a rating of ineffective. The teacher is
25 entitled to a private conference with the superintendent or
26 superintendent's designee.
27 (i) The Indiana education employment relations board established
28 in IC 20-29-3-1 shall publish a model compensation plan with a model
29 salary range that a school corporation may adopt.
30 (j) Each school corporation shall submit its local compensation plan
31 to the Indiana education employment relations board. For a school year
32 beginning after June 30, 2015, a local compensation plan must specify
33 the range for teacher salaries. The Indiana education employment
34 relations board shall publish the local compensation plans on the
35 Indiana education employment relations board's website.
36 (k) The Indiana education employment relations board shall review
37 a compensation plan for compliance with this section as part of its
38 review under IC 20-29-6-6.1. The Indiana education employment
39 relations board has jurisdiction to determine compliance of a
40 compensation plan submitted under this section.
41 (l) This chapter may not be construed to require or allow a school
42 corporation to decrease the salary of any teacher below the salary the
ES 249—LS 6854/DI 120 4
1 teacher was earning on or before July 1, 2015, if that decrease would
2 be made solely to conform to the new compensation plan.
3 (m) After June 30, 2011, all rights, duties, or obligations established
4 under IC 20-28-9-1 before its repeal are considered rights, duties, or
5 obligations under this section.
6 (n) An employment agreement described in IC 20-28-6-7.3 between
7 an adjunct teacher and a school corporation is not subject to this
8 section.
9 SECTION 2. IC 20-29-2-6, AS AMENDED BY P.L.189-2023,
10 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 6. "Deficit financing" for a budget year:
12 (1) means, except as provided in subdivision (2), actual
13 expenditures exceeding the employer's current year actual
14 education fund revenue and, for a school employer for which the
15 voters have passed an operating referendum tax levy under
16 IC 20-46-1 or a school safety referendum tax levy under
17 IC 20-46-9, the amount of revenue certified by the department of
18 local government finance, excluding money distributed to a
19 charter school under IC 20-46-1-21 or IC 20-46-9-22; or
20 (2) means, in the case of any distressed school corporation, the
21 Gary Community School Corporation, or the Muncie Community
22 school corporation, actual expenditures plus additional payments
23 against any outstanding debt obligations exceeding the employer's
24 current year actual education fund revenue, and, for a school
25 employer for which the voters have passed an operating
26 referendum tax levy under IC 20-46-1 or a school safety
27 referendum tax levy under IC 20-46-9, excluding money
28 distributed to a charter school under IC 20-46-1-21 or
29 IC 20-46-9-22, the amount of revenue certified by the department
30 of local government finance.
31 Except as provided in IC 20-29-6-3(c), revenue does not include money
32 estimated to be or actually transferred from the school corporation's
33 operations fund to its education fund. Revenue does not include
34 money allocated for supplemental payments in a resolution passed
35 under IC 20-29-6-3(d).
36 SECTION 3. IC 20-29-6-3, AS AMENDED BY P.L.254-2019,
37 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 3. (a) It is unlawful for a school employer to enter
39 into any agreement that would place the employer in a position of
40 deficit financing due to a reduction in the employer's actual general
41 fund (before January 1, 2019) or education fund (after December 31,
42 2018) revenue or an increase in the employer's expenditures when the
ES 249—LS 6854/DI 120 5
1 expenditures exceed the employer's current year actual general fund
2 (before January 1, 2019) or education fund (after December 31, 2018)
3 revenue. Except as provided in subsection (c), revenue does not include
4 money estimated to be or actually transferred from the school
5 corporation's operations fund to its education fund. Revenue does not
6 include money allocated for supplemental payments in a resolution
7 passed under subsection (d).
8 (b) A contract that provides for deficit financing is void to that
9 extent, and an individual teacher's contract executed under the contract
10 is void to that extent.
11 (c) Notwithstanding subsection (a), before September 15 of any
12 year, a governing body may pass a one (1) year resolution indicating
13 that a portion or percentage of money transferred from the operations
14 fund to the education fund may be considered education fund revenue
15 for purposes of funding a contract under this chapter and to determine
16 whether an agreement would place the employer in a position of deficit
17 financing. The resolution shall expire within one (1) year of the
18 resolution's adoption by the governing body.
19 (d) Before September 15 of any year, a governing body may pass
20 a one (1) or two (2) year resolution indicating that a portion or
21 percentage of education fund revenue allocated for supplemental
22 fund payments under IC 20-28-9-1.5(a) is not considered education
23 fund revenue for the purposes of subsection (a). The resolution
24 shall not extend beyond the end of the corresponding state budget
25 biennium.
ES 249—LS 6854/DI 120 6
COMMITTEE REPORT
Mr. President: The Senate Committee on Education and Career
Development, to which was referred Senate Bill No. 249, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, line 14, delete "if it determines that" and insert "when".
Page 2, line 8, reset in roman "fifty percent (50%)".
Page 2, line 8, delete "forty percent".
Page 2, line 9, delete "(40%)".
Page 2, delete lines 21 through 24.
Page 2, line 25, reset in roman "(4)".
Page 2, line 25, delete "(5)".
Page 2, line 25, delete "." and insert ", including employment in a
high need area such as those identified under IC 20-29-3-15(b)(27).
This factor may not account for less than ten percent (10%) of the
calculation used to determine a teacher's increase or increment.".
and when so amended that said bill do pass.
(Reference is to SB 249 as introduced.)
RAATZ, Chairperson
Committee Vote: Yeas 9, Nays 4.
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Education, to which was referred
Senate Bill 249, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill be amended as follows:
Page 1, line 16, after "and" insert ", under IC 20-29-6-3(d),".
Page 1, line 17, after "exclude" insert ", for this purpose,".
Page 1, line 17, delete "from the" and insert "from education fund
revenues included in IC 20-29-2-6.".
Page 2, line 1, delete "estimates of IC 20-29-6-12.5 for this
purpose.".
Page 4, delete lines 8 through 42, begin a new paragraph and insert:
"SECTION 2. IC 20-29-2-6, AS AMENDED BY P.L.189-2023,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
ES 249—LS 6854/DI 120 7
JULY 1, 2025]: Sec. 6. "Deficit financing" for a budget year:
(1) means, except as provided in subdivision (2), actual
expenditures exceeding the employer's current year actual
education fund revenue and, for a school employer for which the
voters have passed an operating referendum tax levy under
IC 20-46-1 or a school safety referendum tax levy under
IC 20-46-9, the amount of revenue certified by the department of
local government finance, excluding money distributed to a
charter school under IC 20-46-1-21 or IC 20-46-9-22; or
(2) means, in the case of any distressed school corporation, the
Gary Community School Corporation, or the Muncie Community
school corporation, actual expenditures plus additional payments
against any outstanding debt obligations exceeding the employer's
current year actual education fund revenue, and, for a school
employer for which the voters have passed an operating
referendum tax levy under IC 20-46-1 or a school safety
referendum tax levy under IC 20-46-9, excluding money
distributed to a charter school under IC 20-46-1-21 or
IC 20-46-9-22, the amount of revenue certified by the department
of local government finance.
Except as provided in IC 20-29-6-3(c), revenue does not include money
estimated to be or actually transferred from the school corporation's
operations fund to its education fund. Revenue does not include
money allocated for supplemental payments in a resolution passed
under IC 20-29-6-3(d).
SECTION 3. IC 20-29-6-3, AS AMENDED BY P.L.254-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) It is unlawful for a school employer to enter
into any agreement that would place the employer in a position of
deficit financing due to a reduction in the employer's actual general
fund (before January 1, 2019) or education fund (after December 31,
2018) revenue or an increase in the employer's expenditures when the
expenditures exceed the employer's current year actual general fund
(before January 1, 2019) or education fund (after December 31, 2018)
revenue. Except as provided in subsection (c), revenue does not include
money estimated to be or actually transferred from the school
corporation's operations fund to its education fund. Revenue does not
include money allocated for supplemental payments in a resolution
passed under subsection (d).
(b) A contract that provides for deficit financing is void to that
extent, and an individual teacher's contract executed under the contract
is void to that extent.
ES 249—LS 6854/DI 120 8
(c) Notwithstanding subsection (a), before September 15 of any
year, a governing body may pass a one (1) year resolution indicating
that a portion or percentage of money transferred from the operations
fund to the education fund may be considered education fund revenue
for purposes of funding a contract under this chapter and to determine
whether an agreement would place the employer in a position of deficit
financing. The resolution shall expire within one (1) year of the
resolution's adoption by the governing body.
(d) Before September 15 of any year, a governing body may pass
a one (1) or two (2) year resolution indicating that a portion or
percentage of education fund revenue allocated for supplemental
fund payments under IC 20-28-9-1.5(a) is not considered education
fund revenue for the purposes of subsection (a). The resolution
shall not extend beyond the end of the corresponding state budget
biennium.".
Delete page 5.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 249 as printed February 7, 2025.)
BEHNING
Committee Vote: yeas 8, nays 4.
ES 249—LS 6854/DI 120