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 6440 NOTE PREPARED: Dec 2, 2020
BILL NUMBER: SB 85 BILL AMENDED:
SUBJECT: Collective Bargaining.
FIRST AUTHOR: Sen. Ford Jon BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that teacher working hours are subject to collective bargaining.
It also provides that an employer is required to discuss:
(1) working conditions; and
(2) student learning;
with the exclusive representative of certificated employees.
The bill removes teacher evaluations from the list of items that are required to be considered to determine
teacher salary increases or increments.
The bill also makes changes to the definition of the term "deficit financing" for purposes of determining the
amount of money that is available for teacher contracts.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Indiana Education Employment Relations Board (IEERB): If the bill's
provision making teacher working hours subject to collective bargaining results in an increase in negotiations
going to impasse, IEERB would experience a workload increase. Depending on the extent of the workload
increase, additional staff or resources may be required.
Explanation of State Revenues:
Explanation of Local Expenditures: Collective Bargaining: If the bill's provision making teacher working
hours subject to collective bargaining results in an increase in negotiations going to impasse, school
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corporations could incur more costs for mediators. The increase in expenditures, if any, is dependent upon
the actions of the school corporations and employees.
Deficit Financing: Under current law, school corporations are prohibited from signing contracts that put them
into a position of deficit financing, which is defined as spending in excess of the sum of the education fund
revenue plus any revenue from an operating referendum or school safety referendum levy. School boards are
permitted to pass a one-year resolution that allows money transferred from the operations fund to the
education fund to be included in the calculation that determines if a school is signing a contract that places
it into deficit financing. The bill’s definition change of deficit financing could allow school corporations to
sign contracts that would be considered deficit financing under current law without needing to pass a one-
year resolution.
Explanation of Local Revenues:
State Agencies Affected: Indiana Education Employment Relations Board.
Local Agencies Affected: School corporations.
Information Sources:
Fiscal Analyst: Austin Spears, 317-234-9454.
SB 85 2


Statutes affected:
1. Introduced Senate Bill (S): 20-28-6-2, 20-28-9-1.5, 20-29-2-6, 20-29-6-3, 20-29-6-4, 20-29-6-7