LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7162 NOTE PREPARED: Dec 31, 2024
BILL NUMBER: SB 305 BILL AMENDED:
SUBJECT: Rural Communities.
FIRST AUTHOR: Sen. Zay BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill establishes the Saving Rural Indiana Program for the purpose of building
additional local capacity allowing innovative communities to create solutions for challenges facing rural
Indiana. The bill establishes the Saving Rural Indiana Matching Grant Fund to carry out the purpose of the
program.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The Office of Community and Rural Affairs will administer the Saving
Rural Indiana Program. They will manage applications, oversee two grant applications cycles a year, and
staff the Saving Rural Indiana Program Grant Board. The bill creates the Saving Rural Indiana Program Grant
Board made up of three members appointed by the Office of Community and Rural Affairs, Indiana
Economic Development Corporation, and the Indiana Destination Development Corporation. The Board will
award the grants to applicants. [The members of the Board serve without compensation.] The Office of
Community and Rural Affairs can implement the program with existing resources.
The grants will be provided by the funds in the Saving Rural Indiana Matching Grant Fund. The Saving Rural
Indiana Matching Grant Fund is a non-reverting fund which receives a $200 M allocation of funds from the
Indiana Economic Development Corporation. The source of the reallocation is not specified, so funds could
come from either the corporation’s General Fund appropriation or one of the dedicated funds administered
by the corporation. The amount of grants provided to eligible counties will depend on the applications and
decisions of the Board.
Explanation of State Revenues:
Explanation of Local Expenditures: An eligible county will incur additional expenditures to participate
in the program. To receive funds, an eligible county is required to prepare a strategic investment plan, apply
for a grant, and contribute funds to the implementation of the plan. The county must specify the amount of
money it is committing to the plan in the application. If a county receives a grant, they must hire an
implementation leader to oversee the project, and the county must provide two reports to the Office of
SB 305 1 Community and Rural Affairs within five years of the grant. The bill specifies the intervals and contents of
the report.
Explanation of Local Revenues: An eligible county could receive a grant for a strategic investment plan.
The grant amount would be determined by the Board.
State Agencies Affected: Office of Community and Rural Affairs; Indiana Economic Development
Corporation; Indiana Destination Development Corporation.
Local Agencies Affected: Local units.
Information Sources:
Fiscal Analyst: Heath Holloway, 317-232-9867.
SB 305 2