IN HB1242

Department of Local Government Finance must conduct a study of per-student operational funding disparities among school corporations, analyzing how local property tax assessed values contribute to funding gaps within each county and estimating costs to bring below-median schools up to median funding levels.

Department of Education must prepare a statewide report on school corporations and charter schools, including data on chronic absenteeism, statewide assessment performance, reading skills evaluations, and teacher salaries, disaggregated by county population and enrollment.

Reports must include recommendations to increase administrative efficiencies, reduce administrative costs, and improve student outcomes in school corporations and charter schools.

Both reports are due by December 1, 2026, to the legislative council; the funding disparity study also goes to the state budget committee, while the school data report goes to the interim study committee on education.

Effective July 1, 2026; provisions expire July 1, 2027 (funding study) and December 31, 2026 (school data report).