This bill amends South Dakota's law regarding the funding set aside for extraordinary expenses related to special education programs. It modifies Section 13-37-40 to require the Secretary of the Department of Education to set aside five million dollars from state aid for special education, starting July 1, 2026. The bill also stipulates that beginning July 1, 2027, this amount will increase annually based on an index factor defined in another section of the law. Additionally, any unspent funds from this allocation will not revert to the general fund, but the total amount reserved for extraordinary expenses each year cannot exceed five million five hundred thousand dollars.

The bill removes previous limitations on the funding process and the oversight requirements for expenditures, streamlining the allocation process for extraordinary expenses incurred in providing special education services. It also establishes a mechanism for annual adjustments to the funding based on the index factor, ensuring that the financial support for special education keeps pace with inflation or other economic factors.

Statutes affected:
Introduced, 01/21/2026: 13-37-40