This bill amends the existing law regarding the distribution of state aid to sparse school districts in South Dakota. It specifies that the secretary of the Department of Education must distribute funds to these districts by calculating a benefit based on either subdivision 13-13-78(2) or subdivision 13-13-78(3), multiplied by seventy-five percent of the per student equivalent defined in 13-13-10.1. Additionally, the bill establishes a new cap on the sparsity benefit, stating that no sparse school district may receive a benefit exceeding one hundred seventy-five thousand dollars in any fiscal year.

Furthermore, the bill introduces a provision that, starting July 1, 2026, the maximum amount a sparse school district can receive will increase annually by the index factor as defined in 13-13-10.1. This change aims to ensure that the funding for sparse school districts keeps pace with inflation and other economic factors, thereby providing more consistent support for these educational institutions.

Statutes affected:
Introduced, 01/14/2025: 13-13-79