The bill amends provisions related to the School Finance Accountability Board within the Department of Education in South Dakota. It updates the composition of the board, which will now consist of five members appointed by the Governor, and clarifies the board's authority to recommend waivers for reductions in state aid for general education and penalties imposed on school districts. The bill introduces new processes for school districts to request waivers and outlines the conditions under which the board may grant these waivers, including requirements for maintaining certain financial standards over a three-year period.

Additionally, the bill establishes that the School Finance Accountability Board will create rules to define the waiver request process, necessary documentation for demonstrating special circumstances, and factors to be considered in waiver determinations. It also modifies the language regarding the reduction of state aid for general education based on a school district's cash balance and the penalties for not meeting teacher compensation standards. Overall, the bill aims to enhance accountability and provide clearer guidelines for school districts facing financial challenges.

Statutes affected:
Introduced, 02/02/2026: 1-45-38, 13-13-73.5, 13-13-73.9