LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7503 NOTE PREPARED: Apr 15, 2025 BILL NUMBER: SB 448 BILL AMENDED: Apr 14, 2025 SUBJECT: Higher Education and Workforce Development Matters. FIRST AUTHOR: Sen. Goode BILL STATUS: As Passed House FIRST SPONSOR: Rep. Behning FUNDS AFFECTED:XGENERAL IMPACT: State DEDICATED FEDERAL Summary of Legislation: This bill establishes additional duties for the Governor's Workforce Cabinet (GWC) and requires the cabinet to perform certain duties jointly with other state agencies. The bill requires the Indiana Management Performance Hub, in collaboration with the Department of Education (DOE) and Commission for Higher Education (CHE), to: (1) collect and compile certain student income data; and (2) compile into a data product on the DOE and CHE websites certain data. The bill requires the Secretary of Education to establish a plan to develop a market driven stackable credentials and qualifications framework and submit the plan to the General Assembly. It provides that CHE shall (instead of may) approve or disapprove certain branches, campuses, centers, new colleges, new schools, degrees, or programs. It provides that before CHE approves or disapproves a degree or program, a state educational institution (SEI) shall provide, and CHE shall consider, certain information regarding the degree or program. The bill requires CHE to: (1) review each degree or program for approval or disapproval at least one time every 10 years; (2) outline a process for degree and program monitoring, improvement, suspension, and closure; (3) publish certain information; and (4) take official action regarding the approval or disapproval of certain requests within 90 days. The bill requires a state educational institution (SEI) to approve for admission Indiana residents who meet certain requirements. The bill requires the board of trustees of a state educational institution to do the following: (1) When reviewing tenured faculty members, assess and review the staffing needs of the institution based on the branches, campuses, extension centers, colleges, schools, and degree and programs of the institution. SB 448 1 (2) Submit to the commission any review of, renewal of, or amendment to the process or criteria regarding the tenured faculty member review. The bill requires CHE to promptly review the process and criteria and provide feedback to a board of trustees. It also requires CHE to prepare and submit an annual report to the Legislative Council regarding certain student enrollment data. The bill adds duties for the Department of Workforce Development (DWD). Effective Date: July 1, 2025. Explanation of State Expenditures: Commission for Higher Education (CHE): The bill increases workload for CHE and is likely to require additional staffing. Costs for an additional staff member are estimated at $113,000 to 118,000 annually. The added workload is related to approving new degrees or programs, reviewing all programs at least once within a 10-year period, creating a process for program monitoring, and completing the new annual report on student residency, citizenship, and dual enrollment. The bill also requires CHE to prepare recommendations regarding the percentage of resident students that the SEIs should enroll to meet workforce demands. Governor’s Workforce Cabinet: This bill’s provisions include requiring GWC to create a unified comprehensive statewide talent plan, deliver it to the Governor and Legislative Council, and update that plan on a biennial basis. This will create a significant workload increase for the cabinet and will require planning and coordination with external agencies as specified in the bill. Full implementation is likely to require either additional staffing or a contract. [As of 5 April, GWC has two unfilled project manager positions. Salary and benefits for each position are estimated at $140,000 to $150,000 annually.] State Educational Institutions (SEIs): The bill impacts workload at the SEIs to provide certain information to the CHE, and it modifies requirements for faculty reviews. It also requires SEIs to admit any student who earns a diploma with an Enrollment Honors Plus Seal. These should be able to be accomplished within existing resources. [SEIs receive state funding through General Fund appropriations.] Secretary of Education: The bill impacts workload at the DOE during FY 2026 to develop a market driven stackable credentials and qualifications framework and to submit the plan to the General Assembly by November 1, 2025. To the extent the DOE coordinates with the Department of Workforce Development (DWD) and the CHE to analyze career pathways and labor market information, the workload impact could be mitigated. It is anticipated this can be accomplished with existing resources. Department of Workforce Development: This bill requires DWD to collect employment information from certain employers, enter into data sharing agreements with other agencies to receive the data, and to establish an employer outreach and communications campaign in support of data collection. The bill’s requirements constitute a significant additional workload for DWD, and existing staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation. Management Performance Hub (MPH): The bill’s requirements will impact workload for the MPH. To the extent the MPH coordinates with GWC, DOE, DWD, and CHE, the workload impact could be mitigated. It is anticipated this can be accomplished with existing resources. Additional Information – Currently, CHE may approve certain branches, campuses, centers, new colleges, SB 448 2 degrees or programs. This work is accomplished by the Academic Affairs and Quality Committee. The committee meets monthly and includes at least one dedicated CHE staff member. If the committee would need to hold more meetings and/or add dedicated staffing, expenditures would increase. The bill changes this to a shall, and adds specific requirements for the CHE to consider during the approval process in statute. Explanation of State Revenues: Tuition Fee Revenue: SEIs could experience changes in enrollment which could impact tuition fee revenue. The difference in resident and nonresident tuition and fee rates for full-time students for the 2024-2025 academic year ranged from approximately $2,400 (Ivy Tech) to $30,000 (IU Bloomington) depending on the SEI. Additional Information – According to data for fall 2023 undergraduate enrollment from CHE, all but one SEI campus reports over 50% of all undergraduates are resident students. This report does not specify data for incoming freshman. Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Management Performance Hub, Department of Education, Commission for Higher Education, State Educational Institutions, Governor, Legislative Council. Local Agencies Affected: Information Sources: LSA Statewide Staffing Database, April 2025 Department of Workforce Development: https://indemandjobs.dwd.in.gov/ Department of Education: https://indianagps.doe.in.gov/ Management Performance Hub: https://www.in.gov/mph/projects/ewd/ Commission for Higher Education: https://iga.in.gov/publications/agency_report/2023-11-01T16-54-52.856Z-2023%20Annual%20Report% 20-%20Resident%20and%20Nonresident%20Rate%20Percentages.pdf Fiscal Analyst: Alexander Raggio, 317-234-9485; Allison Leeuw, 317-234-9465. SB 448 3