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 7025 NOTE PREPARED: Jan 26, 2021
BILL NUMBER: HB 1003 BILL AMENDED:
SUBJECT: Tuition Support.
FIRST AUTHOR: Rep. Slager BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Raatz
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, 2020 (retroactive).
Explanation of State Expenditures: 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 $169 M less than the appropriation for FY 2021.
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 non-virtual 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.
2.The student is not enrolled in a school that was a virtual charter school in February of 2020.
HB 1003 1
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: 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 [See Explanation of State Expenditures.]
State Agencies Affected: Department of Education.
Local Agencies Affected: Public schools.
Information Sources: Department of Education, LSA education database. State Board of Education:
https://www.in.gov/sboe/files/September%202020%20News%20Release.pdf
Fiscal Analyst: Austin Spears, 317-234-9454.
HB 1003 2