Teacher compensation and collective bargaining.

Provides that, in calculating whether a school corporation has met the 45% teacher compensation threshold, a school corporation: (1) may include only salaries paid from the state tuition support distributions during the state fiscal year; and (2) shall count the total funds received in state tuition support distributions to the school corporation during the state fiscal year. Provides that a school corporation is not considered to be in deficit financing if the sum of the ending respective cash balance on June 30 of the immediately preceding state fiscal year of: (1) the school corporation's rainy day fund; plus (2) the school corporation's education fund; exceeds an amount equal to 20% of the school corporation's most recently adopted annual budget. Requires a school employer to bargain collectively class size, health and safety matters, and teacher preparation time with an exclusive representative.