This bill amends South Dakota law concerning property tax levies for school districts and the formulas for state aid in general and special education. It establishes new maximum tax levies, 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. The bill also details the calculation of fall enrollment for state aid, incorporating adjustments for nonresident students in state custody and those involved in interscholastic activities. Additionally, it revises definitions and calculations related to special education funding, ensuring allocations for students with varying disabilities are adjusted annually based on an index factor.

Moreover, the legislation introduces a method for determining local need at the statewide level, which includes multiplying the number of students with disabilities by their respective allocations from the previous school fiscal year's child count. It also 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 definition for "effort factor" is established, calculated by dividing a school district's special education tax levy by $1.262, with a maximum effort factor of 1.0. These changes aim to create a more equitable funding framework for education, particularly for students requiring special education services, with the new provisions taking effect for taxes payable in 2026 and beyond.

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