SB 225 directs that 4% of the interest earnings from South Dakota's unclaimed property trust fund (without touching the principal) be distributed annually to school districts starting in fiscal year 2026. The funds will be apportioned to school districts based on their student enrollment, following the existing method used for other school funding. This adds a new source of revenue for school districts through the trust fund's interest, calculated using the fund's market value as of December 31 each year. The bill modifies existing statutes to implement this distribution, ensuring the funds are added to the general fund before being allocated to schools under current apportionment rules.
This bill requires South Dakota public schools to teach prenatal human growth and development in health or science classes using specific materials. It mandates that schools use resources recommended by the state Board of Education, including at least three minutes of high-definition ultrasound videos showing organ development or computer-generated animations of prenatal growth from fertilization to birth. The law prohibits using any materials from entities that perform, promote, or refer to abortion services. This directly affects K-12 public school curricula in South Dakota, altering required health/science content.
HB 1291 amends South Dakota's formula for calculating school district funding by changing how "fall enrollment" is determined. It specifically adjusts the count of students in state custody (like foster care) and those receiving tuition from other districts when calculating a district's base funding. The bill also updates the method for calculating "target teacher ratio" based on district size and ties future teacher salary adjustments to the consumer price index (inflation). These changes directly affect how much state funding school districts receive under South Dakota's education finance system.
This bill creates the "Building Opportunity Through Out-of-School Time Program" and establishes a dedicated state fund to support after-school and summer programs for students. The program fund, administered by the South Dakota Department of Education, provides grants to eligible providers (like school districts or qualified nonprofits) to cover staffing, materials, and transportation costs for evidence-based out-of-school time programming. Priority is given to programs serving under-served students, fostering community partnerships, and supplementing existing funding. The fund is supported by a new fee and state appropriations, with grants distributed annually based on applications submitted between August 1 and September 30.
This bill reduces property taxes for homeowners by lowering the mill levy rate on owner-occupied single-family homes from $5.21 to $20.51 per $1,000 of taxable value (with the exact figure clarified in the bill text). It simultaneously raises the state sales tax from 4.2% to 4.7% for 2026-2027 and to 5% after 2027, and expands the gross receipts tax to cover more services like dry cleaning, beauty shops, and rentals. The revenue from these tax increases is explicitly allocated to replace lost school district property tax revenue and fund pay raises for state and school employees. The bill ensures school districts maintain their total funding levels under the new system.
SB 223 modifies South Dakota's process for school districts to refer excess tax levies to voter approval. It changes the petition signature requirement from a flat 50 voters to "at least five percent of the registered voters" in the school district. The bill also adjusts notice rules, waiving newspaper publication requirements if the district mails the resolution to all property taxpayers within 20 days. This affects school districts seeking voter input on tax increases and directly impacts local taxpayers who may petition to refer levy decisions.
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 1281 reduces sales and use tax rates on non-prepared food (like groceries) for consumers while increasing tax rates on other items, including certain excise taxes and use taxes. The bill establishes a new fund specifically for school district capital projects, such as building construction or major equipment purchases. It defines "food" to exclude prepared meals (e.g., restaurant takeout), alcohol, tobacco, and candy, ensuring the tax cut applies only to basic grocery items. The policy shifts tax burden from grocery shoppers to other taxable goods and services to finance school infrastructure.
HB 1249 modifies the process for school districts to request waivers of financial penalties under South Dakota law. It requires the School Finance Accountability Board to create specific rules for how districts can apply for waivers, including documentation needed to prove "special circumstances" (like retirement impacts on cash balances). The bill also adds that waiver conditions must include maintaining cash balance requirements for three years or meeting teacher pay standards for three years, with penalties for noncompliance. These changes directly affect school districts facing financial penalties under Sections 13-13-73.5, 13-13-73.6, or 13-13-73.8. The bill clarifies the board’s role in reviewing waiver requests and the Joint Committee’s authority to approve or amend them.
SB 205 revises drone registration fees in South Dakota, charging 1.5% of purchase price for agricultural drones and 2% for all other drones. The collected fees fund a new "drone aviation fund" administered by the Board of Technical Education to support drone training grants at state technical colleges. This bill directly affects drone owners (especially agricultural users) by changing their registration tax rates and creating a dedicated funding source for drone industry workforce development. The fund will receive all drone registration fees and interest, with expenditures requiring annual budget approval. The bill does not apply to small unmanned aircraft systems covered under federal regulations.
