This bill amends several sections of South Dakota law regarding property tax levies for school districts and the formulas for state aid to general and special education. Specifically, it establishes new maximum mill levies for school districts starting in 2027, including a general fund maximum of $4.86 per thousand dollars of taxable valuation, a special levy for special education capped at $1.44, and specific rates for agricultural and owner-occupied properties. The bill also outlines the calculation of fall enrollment for state aid purposes, which includes provisions for nonresident students in state custody and adjustments for English learners.

Additionally, the bill revises the definitions and calculations related to local effort and local need for funding special education, including specific allocations for students with varying levels of disabilities. It introduces an index factor for adjusting teacher salaries and benefits, and it mandates that adjustments to levies must maintain the relationship between statewide local effort and local need. The bill aims to ensure equitable funding for education while providing clear guidelines for tax levies and state aid calculations.

Statutes affected:
Introduced, 01/09/2026: 10-12-42, 13-13-10.1, 13-37-16, 13-37-35.1
Joint Appropriations Engrossed, 03/12/2026: 10-12-42, 13-13-10.1, 13-37-16, 13-13-72.1, 13-37-35.1
Enrolled, 03/12/2026: 10-12-42, 13-13-10.1, 13-37-16, 13-13-72.1, 13-37-35.1