Note: This version of section amended by P.L.136-2024, SEC.43, effective 1-1-2025. See also preceding version of this section amended by P.L.150-2024, SEC.26, effective 7-1-2024.

     Sec. 28. (a) Subject to subsection (g), for each school year in a state fiscal year beginning after June 30, 2023, a school corporation shall expend an amount for teacher compensation that is not less than an amount equal to sixty-two percent (62%) of the state tuition support 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. Teacher benefits include all benefit categories collected by the department for Form 9 purposes.

     (b) If a school corporation determines that the school corporation cannot comply with the requirement under subsection (a) for a particular school year, the school corporation shall apply for a waiver from the department.

     (c) The waiver application must include an explanation of the financial challenges, with detailed data, that preclude the school corporation from meeting the requirement under subsection (a) and describe the cost saving measures taken by the school corporation in attempting to meet the requirement in subsection (a). The waiver may also include an explanation of an innovative or efficient approach in delivering instruction that is responsible for the school corporation being unable to meet the requirement under subsection (a).

     (d) If, after review, the department determines that the school corporation has exhausted all reasonable efforts in attempting to meet the requirement in subsection (a), the department may grant the school corporation a one (1) year exception from the requirement.

     (e) A school corporation that receives a waiver under this section shall work with the department to develop a plan to identify additional cost saving measures and any other steps that may be taken to allow the school corporation to meet the requirement under subsection (a).

     (f) A school corporation may not receive more than three (3) waivers under this section.

     (g) 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.

     (h) 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;

(3) whether the school corporation met the requirement set forth in subsection (a); and

(4) whether the school corporation received a waiver under subsection (d).

As added by P.L.165-2021, SEC.156. Amended by P.L.132-2022, SEC.2; P.L.246-2023, SEC.37; P.L.136-2024, SEC.43.