The bill amends the process by which certain school districts in South Dakota calculate the general fund base percentage, which is crucial for determining funding allocations. Key changes include the redefinition of the general fund base percentage, which will now be based on the average fall enrollment from the previous two years rather than just the current year's enrollment. For school districts with a fall enrollment of 200 or fewer, the percentage remains at 40%. For those with more than 200 but fewer than 600 students, the percentage will be calculated as 45 minus the product of the fall enrollment multiplied by 0.025. For districts with 600 or more students, the percentage is set at 25%.

Additionally, the bill introduces a new definition for "allowable general fund cash balance," which is now described as the maximum amount a school district may hold in its general fund, calculated by multiplying the previous year's general fund expenditures by the newly defined general fund base percentage. Other definitions and calculations related to funding, such as the target teacher salary and local need, remain largely unchanged, but the bill emphasizes the importance of accurately reflecting student enrollment figures in funding calculations to ensure equitable distribution of resources across school districts.

Statutes affected:
Introduced, 01/23/2026: 13-13-10.1