This bill amends provisions related to the calculation of local effort and state aid for general education in South Dakota. It introduces new definitions and adjustments for various terms, including "local effort," which now encompasses funds apportioned to school districts from specific statutes and those exceeding the other revenue base amount. Additionally, the bill allows school district boards to opt out of including excess funds in their overhead rate and local effort calculations, provided they submit a resolution to the Department of Education by July 1 each year. If they choose this option, they are prohibited from transferring funds from their capital outlay fund to their general fund.

Furthermore, the bill modifies the existing language regarding the capital outlay fund, specifying that a school district may transfer up to 45% of the total tax revenues deposited in that fund to its general fund, except as outlined in the new section regarding local effort. The bill also clarifies the use of the capital outlay fund for various expenditures, including the acquisition of property and equipment, and allows for the purchase of textbooks and instructional software. Overall, these changes aim to refine the funding mechanisms for education in South Dakota, ensuring that local efforts and state aid are calculated more effectively.

Statutes affected:
Introduced, 02/04/2026: 13-13-10.1, 13-16-6