The bill amends South Dakota's current law regarding the permissible uses of a school district's capital outlay fund, specifically outlined in section 13-16-6. The amendments clarify that school districts may use funds for various expenditures, including the acquisition or lease of real property, construction and remodeling of facilities, and payments related to capital outlay certificates. Additionally, the bill allows for the purchase of warranties on capital assets (excluding supplies), textbooks, instructional software, and equipment. It also stipulates that any purchase not exceeding one thousand dollars may be paid from the general fund and sets a limit on the total accumulated unpaid principal balances of installment contracts and lease-purchases.

Furthermore, the bill introduces a provision that permits school districts to transfer up to forty-five percent of the total tax revenues from the capital outlay fund to the general fund during the current school fiscal year. This change aims to provide greater flexibility in managing school district finances while ensuring that the necessary funds are available for essential educational resources and infrastructure.

Statutes affected:
Introduced, 01/23/2026: 13-16-6
Enrolled, 02/26/2026: 13-16-6