LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7358 NOTE PREPARED: Jan 23, 2025
BILL NUMBER: SB 373 BILL AMENDED: Jan 23, 2025
SUBJECT: Department of Education.
FIRST AUTHOR: Sen. Raatz BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) Shifting Administrative Duties: This bill provides that the Department
of Education (DOE) is the proper authority to accept federal funds appropriated to aid in the education of
children with disabilities (current law provides that the State Board of Education (SBOE) is the proper
authority). The bill moves the establishment of the Division of Special Education from SBOE to DOE. It
changes certain duties for the Secretary of Education and the Director of Special Education. S
Policy Changes: The bill provides that the evaluation process for certain curricular materials must include
the age appropriateness of the content. It provides that an individual seeking an initial practitioners license
through an alternative certification path must successfully complete an applicable teacher licensing exam as
approved by SBOE (current law requires the successful completion of a Praxis Subject Assessment). It also
provides that funding for approved summer school programs is to be on a per student basis. It provides that
summer school funding may be differentiated based on the course or length of time of the program. The bill
provides that DOE may suspend or terminate the certification of a scholarship granting organization if DOE
establishes that the organization has not granted a scholarship within certain time frames.
School Bus Committee: This bill removes the member of the Indiana Transportation Association from the
list of nonvoting members on the State School Bus Committee.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Provisions in the bill shift certain special education related
administrative duties from the State Board of Education (SBOE) and the Governor, to the Department of
Education (DOE). This represents a minor workload decrease for SBOE and the Governor, and a minor
offseting workload increase for DOE. The bill’s workload impact to DOE is within the agency’s routine
administrative functions and should be able to be implemented with no additional appropriations, assuming
near customary agency staffing and resource levels.
Explanation of State Revenues: Licensing Fees: If licensing applications and exams increase due to the
provisions of the bill, fee revenue could increase. The impact is anticipated to be minor. Fees for an initial
SB 373 1 license and exam are subject to a licensing fee of $36.72 plus processing fees. Teacher licensing fees are
distributed to the Professional Standards Fund.
Scholarship Granting Organization: Current statute allows charitable donations into a scholarship granting
organization to qualify for a 50% credit against the individual’s or entity’s state tax liability. Provisions in
this bill require DOE to terminate the certification of a scholarship granting organization if they do not
provide a scholarship for three consecutive years or in the first two years of operation. This is not expected
to have an immediate impact on state tax revenue. However this provision could increase state tax revenue
in the future if decertified scholarship granting organizations would have otherwise received contributions
eligible for a tax credit. Any impact is expected to be small.
Additional Information - From 2021-2023, only one scholarship granting organization would have lost their
certification. However this organization did not receive a contribution during these years.
Explanation of Local Expenditures: If the number of teachers issued licenses increases as a result of the
bill’s provisions, school corporations may also be able to fill vacant positions.
Explanation of Local Revenues: Public schools currently receive a summer school reimbursement based
on qualifying summer school expenditures reported to DOE. Provisions in this bill require the summer school
reimbursement to be distributed on a per student basis. This will shift the summer school reimbursements
received by public schools but will not impact the total distribution amount.
State Agencies Affected: Department of Education; State Board of Education; Governor’s Office.
Local Agencies Affected: Public schools.
Information Sources: Department of Education, Annual Scholarship Granting Organization Reports
https://www.in.gov/doe/students/indiana-choice-scholarship-program/school-scholarships/.
Fiscal Analyst: Kelan Fong, 317-232-9592.
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