LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6949 NOTE PREPARED: Jan 3, 2025
BILL NUMBER: SB 363 BILL AMENDED:
SUBJECT: Victims of Bullying.
FIRST AUTHOR: Sen. Niezgodski BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill amends the definition of "eligible student" for purposes of eligibility
under the Indiana Education Scholarship Account Program. The bill requires a school to provide certain
victims of bullying with the option to finish the semester by means of virtual instruction or remote learning.
It also makes conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Education Scholarship Account Program: Under the bill, a student
who is a victim of a bullying incident that resulted in an investigation that determined a transfer to another
school is warranted would now be eligible for the Education Scholarship Account (ESA) Program if they
meet the income requirements of the program. The bill specifies that siblings of these students are also
eligible for the ESA Program. The number of students that would be newly eligible is unknown, but would
likely be limited and would also be dependent upon the appropriation made to the ESA Program and the
demand for the program from students in FY 2026 and beyond. Students transferring from a school
corporation to utilize an ESA at a nonpublic school decrease state expenditures.
Virtual Instruction: The bill requires school corporations to allow a student who is a victim of a bullying
incident that resulted in an investigation that determined a transfer to another school is warranted to finish
a semester by means of virtual instruction. To the extent school corporations do not already do this, students
in virtual instruction could increase. Using FY 2025 funding amounts, each student who switches from in-
person instruction to virtual instruction before an ADM count date in a semester would reduce state tuition
support expenditures by about $500. Any impact is expected to be minimal.
Additional Information -
ESA Program: Under current law, the ESA program provides state funding to students who are not enrolled
at a public school and have, or have a sibling who has, a disability for which an individualized education
plan, service plan, or a choice special education plan has been developed. That funding is placed in an
account that can be utilized to pay for certain education-related expenses.
SB 363 1 Prevalence of Bullying: In FY 2024, there were over 33,000 incidences recorded by public schools of
bullying, intimidation, or verbal aggression or profanity that resulted in an arrest, expulsion, or suspension.
Virtual Instruction: Students that are receiving more than half of their instruction in a virtual environment
are counted as virtual students in the state’s average daily membership (ADM) student count dates, which
occur in October and February of every year. Under the current state tuition support funding formula, public
schools receive about $1,000 less annually (or $500 less per semester) in the Foundation Grant than non-
virtual students.
Explanation of State Revenues:
Explanation of Local Expenditures: Providing certain bullying victims with an option to receive virtual
instruction would likely be implemented with existing staff and resources. Many school corporations offer
virtual instruction already, and there are many virtual schools that are open to all Indiana students.
Explanation of Local Revenues: Any reduction in ADM, and the resulting reduction in state tuition support,
from certain bullying victims switching to the ESA is expected to be small and dependent upon the
appropriation made to the ESA Program and the demand for the program from students in FY 2026 and
beyond. Any state tuition support revenue decrease that results from an increase in certain bullying victims
switching from in-person instruction to virtual instruction in a semester is also expected to be small. [See
Explanation of State Expenditures.]
State Agencies Affected:
Local Agencies Affected: School corporations.
Information Sources: LSA Education Database.
Fiscal Analyst: Austin Spears, 317-234-9454
SB 363 2