The bill amends the process for calculating a school district's general fund base percentage in South Dakota. It introduces new definitions and calculations related to school funding, including the "general fund base percentage," which is now determined by dividing the district's general fund balance as of June 30 each year by the district's general fund expenditures from the previous fiscal year, and then multiplying the result by one hundred. This replaces the previous method that assigned fixed percentages based on fall enrollment numbers, which were 40% for districts with 200 or fewer students, 30% for those with more than 200 but fewer than 600, and 25% for districts with 600 or more students.

Additionally, the bill outlines various factors that contribute to the calculation of local need, target teacher compensation, and adjustments for English learners and alternative instruction participation. It emphasizes the importance of accurately reflecting the financial needs of school districts while ensuring that funding is allocated based on current fiscal data rather than static enrollment figures. The changes aim to provide a more equitable and responsive funding structure for South Dakota's public schools.

Statutes affected:
Introduced, 02/04/2026: 13-13-10.1