The bill amends the state aid formula for general and special education in South Dakota, introducing significant updates to definitions and calculations related to school funding. Key changes include the inclusion of nonresident students in the fall enrollment count for state aid calculations, adjustments to the target teacher ratio factor based on district enrollment, and the introduction of new terms such as "target teacher benefits" and "target teacher compensation." Additionally, the bill modifies the calculation of local effort and local need, ensuring that if local effort increases at a higher rate than local need, the levies constituting local effort must be reduced proportionally. It also allows school districts created or reorganized before July 1, 2016, to opt for an alternative local need calculation for state aid, with guidelines for notifying the Department of Education.

Moreover, the bill updates allocations for students with disabilities, specifying amounts for each level of disability starting from fiscal year 2025 and removing the previous index factor for these allocations. It introduces a new definition for "Nonpublic school," clarifying that it refers to sectarian organizations accredited by the secretary of education, while also updating definitions for "Nonpublic fall enrollment" and "Special education fall enrollment." The calculation of "Local need" for special education funding is revised to account for students with varying levels of disabilities, and provisions for extraordinary expenses are included. The bill also allows for up to fifteen percent of the defined local need to be allocated for early intervening services for students not currently qualifying for special education, emphasizes professional development for educators, and mandates proportional increases in funds for technical colleges to ensure competitive instructor salaries.

Statutes affected:
Introduced, 01/29/2026: 13-13-10.1, 13-13-71, 13-13-73, 13-37-16.2, 13-37-35.1, 13-37-55, 13-39-75