Education

HB 1251 creates two new state funds: the "target teacher salary supplement fund" (administered by the Department of Education) and the "community-based providers methodology supplement fund" (administered by the Department of Human Services). The bill directs that unspent state funds from the previous fiscal year - after a portion is placed in a budget reserve - be split equally (30% each) into these two new funds. These funds will directly support increases in teacher salaries and provider rates for community-based services, as specified in existing law. The transfers occur automatically each year through the state's budget process, with expenditures requiring annual legislative approval.

HB 1098 adjusts South Dakota's special education funding formula by establishing annual per-student funding amounts for six disability levels (e.g., $7,650.45 for "level one" disabilities in 2025) that increase yearly based on inflation (using the Consumer Price Index or 3%, whichever is lower). It also requires school districts to reduce local tax levies if local revenue growth exceeds student need growth statewide. The bill directly affects South Dakota school districts (which receive the funding) and students with disabilities (who qualify for services based on their disability level). Key provisions include standardized funding rates per disability classification and a new $1.26 per $1,000 valuation local levy rate for 2026 and beyond.

HB 1168 creates a property tax credit for South Dakota homeowners who pay for qualifying K-12 education expenses for children aged 5-19. The credit covers tuition, school fees (including sports/fine arts), textbooks, tutoring, test fees, transportation, and educational technology. It limits the credit to $1,000 per year or 80% of the school district taxes owed. Homeowners must apply annually by June 1st with documentation from the school or alternative instruction provider.