The bill amends the calculation of state aid for general and special education funding in South Dakota. Key changes include the definition of "fall enrollment," which now allows nonresident students in state custody to be included in the enrollment count for the receiving district. The bill also modifies the "index factor" used in funding calculations, changing it from a maximum of three percent to a minimum of three percent. Additionally, the target teacher salary is set to increase annually based on this index factor, starting at $62,821.19 for the fiscal year beginning July 1, 2025. The bill introduces a new provision for calculating "local need" that includes technology costs and adjustments for sparse school district benefits, while removing previous provisions related to career and technical education.

In the section addressing special education, the bill updates the definitions of disabilities and the allocations for students with varying levels of disabilities, starting from July 1, 2025. The allocations will also increase annually based on the index factor. The definition of "local need" for special education funding is expanded to include various factors, such as the number of students with disabilities and extraordinary expenses. The bill emphasizes the importance of accurately calculating local effort and includes provisions for wind energy tax revenue, ensuring that school districts retain a significant portion of this revenue for the first five years of a wind farm's operation. Overall, the bill aims to enhance the funding structure for education in South Dakota, ensuring that resources are allocated more effectively to meet the needs of students.

Statutes affected:
Introduced, 01/29/2026: 13-13-10.1, 13-37-35.1