LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6497 NOTE PREPARED: Jan 25, 2021
BILL NUMBER: SB 107 BILL AMENDED: Jan 25, 2021
SUBJECT: School Funding.
FIRST AUTHOR: Sen. Mrvan BILL STATUS: CR Adopted - 1st House
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill establishes a definition of "virtual instruction" for purposes of
determining a school corporation's basic tuition support using the average daily membership (ADM).
Effective Date: July 1, 2021.
Explanation of State Expenditures: Tuition Support: The bill would keep the State Board of Education’s
recent modification to the state tuition support rule, which only applied to the September 2020 average daily
membership (ADM), in place for the February ADM as well. The bill’s impact is dependent upon schools’
decisions regarding in-person, virtual, or hybrid learning models in response to the pandemic. If public
schools have a similar portion of their students learning virtually in February as they did in September, the
bill would increase state expenditures by approximately $164 M. Under the bill, total state tuition support
expenditures would still be projected to be about $170 M less than the appropriation for FY 2021. The bill
could also increase state tuition support expenditures in the fall semester of FY 2022. The total impact is
dependent upon schools’ decisions and how virtual education is funded in FY 2022.
Additional Information - ADM is a measure of the number of students that are enrolled and expected to
attend a given school on a given date. The ADM is measured twice per school year, once in September, and
again in February. Under current law, students receiving 50% or more of their instruction online are
considered virtual students. Schools receive 85% of the foundation amount, which is about $4,848, for each
virtual student, compared to the $5,703 schools receive for each nonvirtual student. Under the SBOE’s
modification to the state tuition support rule, a student receiving 50% or more of their instruction in a virtual
environment counts as a virtual student unless both of the following are true:
1. The student was not counted as a virtual student in the FY 2020 February ADM count.
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 2. The student is not enrolled in a school that was a virtual charter school in February.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Tuition Support: Under the bill, public schools’ revenue from state tuition
support could increase by approximately $159 M, assuming public schools have a similar portion of their
students learning virtually in February as they did in September. The bill could also increase revenue from
state tuition support in the fall semester of FY 2022. The total impact is dependent upon schools’ decisions
and how virtual education is funded in FY 2022 [See Explanation of State Expenditures.]
State Agencies Affected: Department of Education.
Local Agencies Affected: Public schools.
Information Sources: LSA education database.
Fiscal Analyst: Austin Spears, 317-234-9454.
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