Education reports., the official text

Second Regular Session of the 124th General Assembly (2026)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.

 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
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a new provision to the Indiana Code or the Indiana Constitution.
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between statutes enacted by the 2025 Regular Session of the General Assembly.

  HOUSE ENROLLED ACT No. 1242

   AN ACT to amend the Indiana Code concerning education.

   Be it enacted by the General Assembly of the State of Indiana:

   SECTION 1. IC 6-1.1-30-21 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 21. (a) The department of local government finance,
in consultation with the department of education (established by
IC 20-19-3-1), shall conduct a study of the disparities in per student
operational funding amounts in school corporations (as defined in
IC 20-18-2-16(a)).

   (b) The study required under subsection (a) must include the
following:

      (1) A comparison of per student operational funding levels for
      school corporations within each county.
      (2) An identification of the median per student operational
      funding level for schools within each county.
      (3) An analysis of the extent to which local property tax gross
      assessed values contribute to funding disparities among
      schools within a county.
      (4) An estimate of the amount of additional funding that
      would be required to bring schools with per student
      operational funding below a median level up to the median
      level.
   (c) The department of local government finance must use the
most recent data available from the department of education

HEA 1242 — Concur
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(established by IC 20-19-3-1) and the state department of revenue
in carrying out the requirements of subsection (b).

   (d) Not later than December 1, 2026, the department of local
government finance shall submit the report required under
subsection (a), in an electronic format under IC 5-14-6, to the
legislative council and the state budget committee.

   (e) This section expires July 1, 2027.
   SECTION 2. IC 20-19-3-41.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 41.3. (a) The department shall
prepare a report compiling statewide data on school corporations
and charter schools. The report must include the following
information:

      (1) The total number of school corporations and charter
      schools in Indiana disaggregated by:

         (A) county population;
         (B) the number of school corporations and charter schools
         per county; and
         (C) the number of students enrolled in each school
         corporation and charter school.
      (2) Data regarding chronic absenteeism rates, performance on
      the statewide assessment program, performance on the
      determinant evaluation of reading skills approved by the state
      board, and teacher salaries, disaggregated by:
         (A) county population;
         (B) the number of school corporations and charter schools
         per county; and
         (C) the number of students enrolled in each school
         corporation and charter school.
      (3) Recommendations to:
         (A) increase school corporation and charter school
         administrative efficiencies;
         (B) reduce school corporation and charter school
         administrative costs; and
         (C) improve student outcomes.
   (b) Not later than December 1, 2026, the department shall, in an
electronic format under IC 5-14-6, submit the report prepared
under subsection (a) to the:
      (1) legislative council; and
      (2) interim study committee on education established by
      IC 2-5-1.3-4.
   (c) This section expires December 31, 2026.

HEA 1242 — Concur
Speaker of the House of Representatives

President of the Senate

President Pro Tempore

Governor of the State of Indiana

Date:                             Time:

HEA 1242 — Concur