LEGISLATIVE SERVICES AGENCY
Office OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7491 NOTE PREPARED: Mar 27, 2025
BILL NUMBER: SB 463 BILL AMENDED: Mar 27, 2025
SUBJECT: Child Care Matters.
FIRST AUTHOR: Sen. Charbonneau BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Rep. Devon
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: (Amended) Child Care Expenditure Tax Credits: The bill extends the availability
of the employer child care expenditure tax credit through July 1, 2027.
Student Caregiver Volunteers: It provides that under specified circumstances, an individual who:
(1) is at least 15 years of age; and
(2) is a student at a school corporation that operates a child care program;
may volunteer as a caregiver for the child care program before completing the statutory requirements for
individuals to act as a volunteer caregiver at a child care program.
Early Learning Advisory Committee: The bill adds two representatives of out-of-school-time programs to
the membership of the Early Learning Advisory Committee (ELAC). The bill also allows the Office of the
Secretary of Family and Social Services (FSSA) to adopt interim rules to implement recommendations issued
by ELAC.
Staff Ratio and Group Size: The bill provides that a licensed child care center may maintain for each of a
specified range of ages:
(1) a staff to child ratio that is greater than or equal to the lowest staff to child ratio allowed
for that age range under the laws of Illinois, Kentucky, Michigan, and Ohio (bordering
states); and
(2) a group size that is less than or equal to the highest group size allowed for that age range
under the laws of the bordering states.
The bill provides exceptions to the bill's group size provisions for:
(1) an indoor or outdoor area of a child care center that provides at least 75 square feet of
space per child; and
(2) a child care center's cafeteria.
The bill also requires the FSSA to post on the FSSA's website not later than December 1 of each year the
staff to child ratio and group size that a licensed child care center may maintain for the next calendar year.
SB 463 1 Micro Center Pilot Program: It provides that if the FSSA has received at least five applications from child
care providers wishing to participate in the Micro Center Pilot Program (pilot program) but has selected less
than five applicants for participation in the pilot program, the FSSA shall select additional applicants for
participation in the pilot program such that at least five child care providers are participating in the pilot
program.
Local Child Care Assistance Program: The bill establishes the Local Child Care Assistance Program (grant
program) for the purpose of providing a county with assistance in expanding the availability of child care
in the county and provides the following with regard to the grant program:
(1) That the FSSA shall administer the grant program and may provide matching grants to
a county participating in the grant program.
(2) That a county that wishes to receive a matching grant must enter into a memorandum of
understanding with the FSSA regarding the purposes for which the county may use the
matching grant.
(3) That a county that receives a matching grant under the grant program must report
specified information to the FSSA.
(4) That the FSSA must submit an annual report to the Legislative Council regarding the
grant program.
Effective Date: (Amended) Upon passage; July 1, 2025.
Explanation of State Expenditures: (Revised) Local Child Care Assistance Program: The bill will increase
expenditures for the Office of the Secretary of Family and Social Services (FSSA) between $100,000 and
$305,000 for staff in the early years of this program, depending on the number of grant program participating
counties. The cost is based on needing one to three additional staff members for implementation of the
program, with average annual salary similar to the three staff serving the On My Way Pre-K program.
Ultimately, the total cost of the program will be based on the number of counties participating, the amount
of county matching funds transferred for state matching, and requirements of the memoranda of
understanding.
The Local Child Care Assistance Grant Fund is established by the bill to be administered by the FSSA, with
the administration costs paid by the fund. The fund consists of appropriations, grants, gifts, and donations,
and participating county transfers. The fund does not revert to the state General Fund.
(Revised) Early Learning Advisory Committee: The bill adds two members to the Early Learning Advisory
Committee (ELAC). Members of the ELAC who are not state employees are entitled to the minimum salary
per diem, currently $100 per day, and reimbursement for traveling and other actual expenses. The ELAC is
to meet at least six times a year.
Staff Ratio and Group Size: The bill’s requirements represent an additional workload on the FSSA to
annually survey surrounding states and post staff to child ratio information on its website. Also, the FSSA’s
workload will increase to regulate child care entities for compliance with information postings and group size
and staffing ratios. These additional duties should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues: Child Care Expenditure Tax Credits: The bill extends the expiration of
the credit from July 1, 2025 to July 1, 2027. The bill will reduce General Fund revenue in FY 2026 through
FY 2028 by up to $2.5 M.
SB 463 2 A taxpayer can claim a credit amount equal to the lesser of 50% of qualified expenditures or $100,000. The
credit may be applied against tax liability for Adjusted Gross Income (AGI) Tax, the Insurance Premiums
Tax, the Nonprofit Agricultural Organization Health Coverage Tax, and the Financial Institutions Tax. The
credit may be carried forward for three years.
Staff Ratio and Group Size: A violations of child care center regulations may result in an action against the
license of the facility, a civil penalty of up to $1,000, or a Class B misdemeanor. Civil penalties are deposited
in the Child Care Fund, a nonreverting fund.
Penalty Provision: If additional court cases occur and fines are collected, revenue to both the Common
School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine
for a Class B misdemeanor is $1,000. The total fee revenue per case would range between $113 and $138.
The amount of court fees deposited will vary depending on whether the case is filed in a court of record or
a municipal court. The following linked document describes the fees and distribution of the revenue: Court
fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: (Revised) Local Child Care Assistance Program: Participating
counties receive state matching grants for county funds for the program. These counties will have increased
workload to prepare grant requests, enter into memoranda of understanding with the FSSA, remit matching
funds to the FSSA, and prepare reports for the FSSA.
Penalty Provision: A Class B misdemeanor is punishable by up to 180 days in jail.
Explanation of Local Revenues: Penalty Provision: If additional court actions occur and a guilty verdict
is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the
county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the
case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: Office of the Secretary of Family and Social Services; Indiana Department of
Revenue.
Local Agencies Affected: Trial courts, local law enforcement agencies, participating counties.
Information Sources: Courtney Penn, OECOSL; Indiana Supreme Court; Indiana Trial Court Fee Manual;
https://iga.in.gov/publications/tax_expenditure_report/2024%20Tax%20Expenditure%20Review%20FIN
AL.pdf.
Fiscal Analyst: Karen Rossen, 317-234-2106, Dhiann Kinsworthy-Blye, 317-234-1360; Camille Tesch,
317-232-5293.
SB 463 3