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 thousand dollars of taxable valuation and a special education levy of $1.46 per thousand dollars. It also specifies levies for agricultural and owner-occupied properties. Additionally, the bill revises the calculation of fall enrollment for state aid, incorporating adjustments for nonresident students in state custody and those involved in interscholastic activities. These changes are set to take effect for taxes payable in 2026 and aim to create a more equitable funding framework for education.

Moreover, the legislation updates definitions and calculations related to special education funding, including annual adjustments based on an index factor for students with varying disabilities. It introduces a new "effort factor" definition, calculated by dividing a school district's special education tax levy by $1.262, with a maximum set at 1.0. The bill also mandates the inclusion of funds for extraordinary expenses and the South Dakota School for the Blind and Visually Impaired in local need calculations, ensuring that school districts are better equipped to meet the needs of 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