Note: This version of section amended by P.L.190-2025, SEC.5. See
also following version of this section amended by P.L.213-2025,
SEC.172.
Sec. 28.
(a)Subject to subsection (c), for each school
year in a state fiscal year beginning after June 30, 2025, a school
corporation shall expend an amount for teacher compensation that is
not less than an amount equal to sixty-five percent (65%) of the state
tuition support, other than the state tuition support described in
subsection (b), distributed to the school corporation during the state
fiscal year. For purposes of determining whether a school corporation
has complied with this requirement, the amount a school corporation
expends for teacher compensation shall include the amount the school
corporation expends for adjunct teachers, supplementa
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Note: This version of section amended by P.L.190-2025, SEC.5. See
also following version of this section amended by P.L.213-2025,
SEC.172.
Sec. 28. (a) Subject to subsection (c), for each school
year in a state fiscal year beginning after June 30, 2025, a school
corporation shall expend an amount for teacher compensation that is
not less than an amount equal to sixty-five percent (65%) of the state
tuition support, other than the state tuition support described in
subsection (b), distributed to the school corporation during the state
fiscal year. For purposes of determining whether a school corporation
has complied with this requirement, the amount a school corporation
expends for teacher compensation shall include the amount the school
corporation expends for adjunct teachers, supplemental pay for
teachers, stipends, and for participating in a special education
cooperative or an interlocal agreement or consortium that is directly
attributable to the compensation of teachers employed by the
cooperative or interlocal agreement or consortium. The amount a
school corporation expends on teacher compensation shall also include
the amount the school corporation expends on dropout recovery
educational services for an at-risk student enrolled in the school
corporation provided by an agreement with an eligible school that is
directly attributable to the compensation of teachers employed by the
eligible school. Teacher benefits include all benefit categories collected
by the department for Form 9 purposes.
(b) State tuition support distributed to a school corporation for
students enrolled in the school corporation who are receiving one
hundred percent (100%) virtual instruction from a teacher employed by
a third party provider with whom the school corporation has contracted
is not included as state tuition support distributed to the school
corporation for purposes of subsection (a).
(c) For purposes of determining whether a school corporation has
complied with the requirement in subsection (a), distributions from the
curricular materials fund established by IC 20-40-22-5 that are
deposited in a school corporation's education fund in a state fiscal year
are not considered to be state tuition support distributed to the school
corporation during the state fiscal year.
(d) Before November 1, 2022, and before November 1 of each year
thereafter, the department shall submit a report to the legislative
council in an electronic format under IC 5-14-6 and the state budget
committee that contains information as to:
(1) the percent and amount that each school corporation expended
and the statewide total expended for teacher compensation;
(2) the percent and amount that each school corporation expended
and statewide total expended for teacher benefits, including
health, dental, life insurance, and pension benefits; and
(3) whether the school corporation met the requirement set forth
in subsection (a).
(e) The department shall publish the report described in subsection
(d) on the department's website.
(f) Beginning after June 30, 2024, for each state fiscal year that a
school corporation fails to expend the amount for teacher compensation
as required under subsection (a), the department shall submit in both
a written and an electronic format a notice to the school corporation's:
(1) superintendent;
(2) school business officer; and
(3) governing body;
that the school corporation failed to meet the requirements set forth in
subsection (a) for the applicable state fiscal year.
(g) If a school corporation's governing body receives a notice from
the department under subsection (f), the school corporation shall do the
following:
(1) Publicly acknowledge receipt of the notice from the
department at the governing body's next public meeting.
(2) Enter into the governing body's official minutes for the
meeting described in subdivision (1) acknowledgment of the
notice.
(3) Not later than thirty (30) days after the meeting described in
subdivision (1), publish on the school corporation's website:
(A) the department's notice; and
(B) any relevant individual reports prepared by the department.
(h) If the department determines a school corporation that received
one (1) or more notices from the department under subsection (f) has
met the expenditure requirements required under subsection (a) for a
subsequent state fiscal year, the school corporation may remove from
the school corporation's website any:
(1) notices the school corporation received under subsection (f);
and
(2) relevant individual reports prepared by the department under
subsection (g)(3).