Ind. Code ch. 21-18-16

Ind. Code ch. 21-18-16
in effect

Ind. Code § 21-18-16-1 "Outcomes based funding formula"

Sec. 1. As used in this chapter, "outcomes based funding formula" refers to the higher educational operating funding outcomes based formula created by the commission under section 2(a) and 2(b) of this chapter. As added by P.L.66-2022, SEC.4. Amended by P.L.201-2023, SEC.225.

Ind. Code § 21-18-16-2 Duty to create formula; align with long range plan for postsecondary education

Sec. 2. (a) The commission shall create a higher educational operating funding outcomes based formula that aligns with the goals outlined in the commission's long range plan for postsecondary education under IC 21-18-8. (b) The commission shall create a separate higher educational operating funding outcomes based formula for Ivy Tech Community College that: (1) aligns with the goals outlined in the commission's long range plan for postsecondary education under IC 21-18-8; and (2) focuses on employer needs, positive wage outcomes, and stackable credentials. (c) An outcomes based funding formula must be created and approved by the commission at a meeting of the commission on or before October 1 of each even-numbered year prior to each odd-numbered year in which the general assembly will reconvene in a first regular session and consider a state budget bill. (d) The commission shall approve the metrics used for an outcomes based funding formula created under this chapter. As added by P.L.66-2022, SEC.4. Amended by P.L.201-2023, SEC.226.

Ind. Code § 21-18-16-3 Funding formula subject to review by budget committee; funding formula report

Sec. 3. (a) An outcomes based funding formula approved by the commission under this chapter is subject to review by the budget committee. (b) The commission shall create a report with regard to each outcomes based funding formula. The report must contain a detailed summary of the formula, the methodologies, and the metrics used to create the formula. The commission shall submit the report prepared under this subsection to the budget committee not later than five (5) days before the meeting described in subsection (c). (c) In even-numbered years, the executive officer of the commission, or the executive officer's designee, shall present the outcomes based funding formula approved by the commission under this chapter and the report submitted under subsection (b) to the budget committee at a meeting that occurs prior to when budget hearings are held under IC 4-12-1-8 and the meeting at which the commission makes its presentation under IC 21-18-9-1(3). As added by P.L.66-2022, SEC.4.

Ind. Code § 21-18-16-4 Duty to present funding results for each state educational institution at budget hearing

Sec. 4. The executive officer of the commission, or the executive officer's designee, shall present the funding results for each state educational institution using the formula created under section 2(a) of this chapter at the same time as budget hearings are held under IC 4-12-1-8 and at the meeting at which the commission makes its presentation under IC 21-18-9-1(3). As added by P.L.66-2022, SEC.4.

Ind. Code § 21-18-16-5 Duty to measure and make findings on progress in meeting long range plan with regard to the funding formula; present findings

Sec. 5. (a) The commission shall biennially measure and make findings on the progress of each state educational institution in meeting the goals of the commission's long range plan for postsecondary education under IC 21-18-8 as those goals pertain to the outcomes based funding formula. (b) The executive officer of the commission, or the executive officer's designee, shall present the findings made for each state educational institution to commission members at a meeting of the commission. (c) Following the presentation to the commission, the executive officer, or the executive officer's designee, shall present the findings with regard to each state educational institution to the budget committee at the budget hearings held under IC 4-12-1-8 and at the same time as the committee's summary of legislative requests and the commission's recommendations are presented under IC 21-18-9-1(3). As added by P.L.66-2022, SEC.4. Amended by P.L.201-2023, SEC.228.

Ind. Code § 21-18-16-6 Audit of data submitted by educational institutions

Sec. 6. (a) The commission shall biennially engage an independent third party examiner to audit the data submitted by each state educational institution for use within the outcomes based funding formula. (b) If the audit required under subsection (a) is performed by the state board of accounts, the state educational institutions shall pay the actual and indirect costs of performing the audit. (c) The commission shall promptly submit a copy of each audit report produced under subsection (a) to the audit and financial reporting subcommittee of the legislative council in an electronic format under IC 5-14-6. As added by P.L.66-2022, SEC.4. Amended by P.L.201-2023, SEC.229.

Ind. Code § 21-18-16-7 Distributions to state educational institutions

Sec. 7. The commission shall distribute on a monthly basis to each state educational institution the amount appropriated for the outcomes based prospective model subject to the commission's review of the state educational institution's performance according to the outcomes based funding formula created under this chapter. As added by P.L.201-2023, SEC.230.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/21Fetched: 10/17/2026