TO:                         IASBO Members
FROM:                  Denny Costerison


Senate Appropriations Committee

The committee met this morning to hear HB 1001, state budget.  Senator Luke Kenley, chair of the committee and sponsor of HB 1001 in the Senate, provided an overview of the Senate Republicans amendment to the budget.  He stated that at the end of the biennium, the proposed budget would still leave a reserve balance of $1.8 billion.

A major change in this amendment was the separation of the voucher funding from the school distribution formula appropriation.  This is a legislative position of IASBO.  The vouchers dollars will have their own line item in the budget for transparency purposes.  With this change the numbers are impacted in the school distribution formula for this amendment.  You will see some differences in the numbers from the House version because of this change.  The key is not to get hung-up on the state-wide percentage increases, but look at the impact on your school corporation.  The Senate version does not increase the foundation amounts as much as the House, but the complexity index is substantially increases.

Today’s amendment contains the following components:

  • A 1.6% state-wide increase in state support for FY2018 and a 1.6% increase in state support in FY2019.  A total increase of $358 million over the biennium.
  • The foundation amount in the school formula will increase to $5,214 (+2.4%)  for FY2018 and $5,274 (1.2%) for FY2019.
  • The complexity index in the formula was changed by adding $405 to the FY 2018 funding amount and $404 to the FY 2019 funding amount.  This is a substantial increase for complexity.  A second tier is added by the Senate for a corporation that has more than 18% of its ADM eligible for the English language learners program and has had a loss of more than 10% in SNAP, TANF or foster care benefits from October 1, 2015 to October 1 2017.  Those corporations will get an additional $128 per ADM in their complexity index.
  • Special Education Grant increased to $8,976 (+2.0%) for severe disabilities in FY2018 and to $9,156 (2.0%) for FY2019.  This is the same as the House version.
  • There was no change to the CTE Grant in the formula for FY2018, but the new formula found in SB 198 will be used in FY2019.
  • Categorical funding in the budget was flat-lined.
  • Removes the spring count date for purposes of state support.  This is the same as the House version.
  • Create the Teacher Appreciation Grant (TAG) program to replace the Teacher Performance Grant program. $40 million is set aside each year for this program.  These monies continue to be outside of collective bargaining.  The TAG calculation is $39 multiplied by the school corporation’s current ADM.  The school corporation shall differentiate between highly effective and effective teachers.   The stipend for a highly effective teacher must be 25% greater than the stipend to an effective teacher.  Virtual schools may not receive a teacher appreciation grant.
  • The Preschool grant will be increased by $4 million for each year of the next biennium.
  • Increases funding for non-English speaking program by $4.5 million in FY2018 and $7.0 in FY2019.  This is the same increases as the House version. The per student grant is $200 in FY2018 and $250 in FY2019.  If a corporation has an English language learner population greater than 5% of the total ADM, then that corporation will receive an additional amount of $157 per student in FY2018 and $163 in FY2019.
  • Broadband funding is flat-lined.  The House had increased the appropriation by $1 million each year of the biennium.
  • School Corporation Efficiency Incentive Grants are deleted.
  • The Indiana School Business Officials Leadership Academy appropriation continues.
  • The language that was added to the budget bill by the House dealing with the Gary Community Schools was deleted.  SB 567, the Gary Schools and DUAB bill, will be amended and then voted to the floor on Monday morning in the House Ways & Means Committee.
  • HB 1001 states that the Distressed Unit Appeals Board “shall evaluate the financial condition of the Muncie Community School Corporation”.
  • The amendment provides relief for the School City of East Chicago regarding their loss of students because of the lead in the ground issue.


The amendment to HB 1001 and the school distribution formula print-out for the amendment can be found on the Senate Republicans website at


IASBO will review the budget and formula in more detail, and will provide more information in the next few days.