LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6782 NOTE PREPARED: Dec 30, 2024
BILL NUMBER: SB 335 BILL AMENDED:
SUBJECT: Teacher Retention Grant Program.
FIRST AUTHOR: Sen. Spencer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill creates the Teacher Retention Grant. The bill provides that certain
schools qualify for a grant if one or more licensed teachers employed by the school or directly providing
virtual education were rated as effective or highly effective. It requires certain schools to create and submit
policies to the Department of Education (DOE) in order to receive a grant. It also provides that the amount
of a grant is equal to $37.50 multiplied by a school's current ADM. The bill provides that DOE shall
distribute the grant in accordance with the following priorities:
(1) To the extent possible, to achieve geographic balance throughout Indiana and to include urban,
suburban, and rural schools; and
(2) To address a documented need for teacher retention grants based on a low teacher retention rate
as determined by the department.
The bill makes conforming changes treating teacher retention grants in the same manner as teacher
appreciation grants.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill establishes the Teacher Retention Grant that will be distributed
to public schools to provide certain teachers an additional stipend. Dependent on the appropriation received
by the program, expenditures would increase. The Department of Education will also experience a workload
increase to administer the program.
Additional Information - Provisions in the bill award schools approved to receive the grant $37.50 per ADM.
However the per-student distribution would be increased or decreased dependent on the appropriation made
into the Teacher Retention Grant. To be eligible to receive a Teacher Retention Grant, public schools must
have at least one teacher who received either an “effective” or “highly effective” rating. In FY 2023, 359
schools had at least one “effective” or “highly effective” rated teacher. [An additional 16 schools did not
have available data.] Based on the estimated ADM for these schools, approximately $37.1 M could annually
be distributed through the grant beginning in FY 2026 if the grant is fully appropriated.
SB 335 1 Explanation of State Revenues:
Explanation of Local Expenditures: Public schools will experience a workload increase to design an annual
plan regarding how the school will distribute funds received from the Teacher Retention Grant.
Explanation of Local Revenues: Beginning in FY 2026, public schools that receive a Teacher Retention
Grant will experience a revenue increase dependent on legislative action. [See Explanation of State
Expenditures.]
State Agencies Affected: Department of Education.
Local Agencies Affected: Public schools.
Information Sources: Department of Education.
Fiscal Analyst: Kelan Fong, 317-232-9592.
SB 335 2