This bill amends the permissible uses of a school district's capital outlay fund in South Dakota. It clarifies that the board of a school district may expend funds for various purposes, including expenditures related to the acquisition or lease of real property, improvements to existing facilities, and payments for capital outlay certificates. New provisions allow for the payment of principal and interest on capital outlay certificates, premiums for property insurance, and a percentage of transportation contract costs or mileage reimbursements. Additionally, the bill specifies that the purchase of warranties on capital assets, textbooks, and instructional software can also be funded through the capital outlay fund.

The bill also removes previous language that limited the use of the capital outlay fund and clarifies that any purchase not exceeding one thousand dollars may be paid from the general fund. It establishes a cap on the total accumulated unpaid principal balances of installment contracts and capital outlay certificates, which cannot exceed three percent of the taxable valuation. Furthermore, it allows the school district to transfer up to forty-five percent of the total tax revenues from the capital outlay fund to its general fund during the current school fiscal year.

Statutes affected:
Introduced, 01/23/2026: 13-16-6