The bill amends South Dakota law to establish new maximum property tax levies for school districts, including a general fund levy of $5.21 per $1,000 of taxable valuation and a special education levy of $1.46 per $1,000. It also introduces specific levies for agricultural and owner-occupied properties. Additionally, the bill outlines a revised calculation method for fall enrollment used in determining state aid, which accounts for nonresident students in state custody and those receiving alternative instruction. These changes are set to take effect for taxes payable in 2026 and aim to create a more equitable funding framework for education.

Furthermore, the legislation revises definitions and calculations related to special education funding, including annual adjustments based on an index factor for students with varying disabilities. It mandates the inclusion of funds for extraordinary expenses and the South Dakota School for the Blind and Visually Impaired in local need calculations. A new "effort factor" is introduced, calculated by dividing a school district's special education tax levy by $1.262, with a maximum set at 1.0. This is designed to promote a fairer distribution of resources for special education across districts, ultimately enhancing support for students with disabilities.

Statutes affected:
Introduced, 01/09/2025: 10-12-42, 13-13-10.1, 13-37-16, 13-37-35.1
Joint Appropriations Engrossed, 03/11/2025: 10-12-42, 13-13-10.1, 13-37-16, 13-37-35.1
Enrolled, 03/13/2025: 10-12-42, 13-13-10.1, 13-37-16, 13-37-35.1