CHAPTER 82
(SB 22)
Student allocations in the state aid formula revised.
FOR AN ACT ENTITLED, An Act to revise the per student allocation in the state aid to general
education formula, and to revise certain allocations for disabilities in the state aid to special
education formula.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 13-13-10.1 be amended to read as follows:
13-13-10.1. Terms used in this chapter mean:
(1) "Average daily membership," the average number of resident and nonresident
kindergarten through twelfth grade pupils enrolled in all schools operated by the
school district during the previous regular school year, minus average number of
pupils for whom the district receives tuition, except pupils described in subdivision
(1A) and pupils for whom tuition is being paid pursuant to § 13-28-42.1 and plus the
average number of pupils for whom the district pays tuition;
(1A) Nonresident students who are in the care and custody of the Department of Social
Services, the Unified Judicial System, the Department of Corrections, or other state
agencies and are attending a public school may be included in the average daily
membership of the receiving district when enrolled in the receiving district. When
counting a student who meets these criteria in its general enrollment average daily
membership, the receiving district may begin the enrollment on the first day of
attendance. The district of residence prior to the custodial transfer may not include
students who meet these criteria in its general enrollment average daily membership
after the student ceases to attend school in the resident district;
(2) "Adjusted average daily membership," calculated as follows:
(a) For districts with an average daily membership of two hundred or less,
multiply 1.2 times the average daily membership;
(b) For districts with an average daily membership of less than six hundred, but
greater than two hundred, raise the average daily membership to the 0.8293
power and multiply the result times 2.98;
(c) For districts with an average daily membership of six hundred or more,
multiply 1.0 times their average daily membership;
(2A) "Fall enrollment," the number of kindergarten through twelfth grade students enrolled
in all schools operated by the school district on the last Friday of September of the
previous school year minus the number of students for whom the district receives
tuition, except nonresident students who are in the care and custody of a state agency
and are attending a public school and students for whom tuition is being paid
pursuant to § 13-28-42.1, plus the number of students for whom the district pays
tuition. When computing state aid to education for a school district under the
foundation program pursuant to § 13-13-73, the secretary of the Department of
Education shall use either the school district's fall enrollment or the average of the
school district's fall enrollment and the school district's fall enrollment from the prior
year, whichever is higher. However, if a school district qualifies to benefit from both
the averaging permitted in this subdivision and the one-time payment provided in
§ 13-13-80 in the same fiscal year, the school district may not benefit from both, but
only from the one that provides the most additional funding to the district;
(2B) "Current fall enrollment," the number of kindergarten through twelfth grade students
enrolled in all schools operated by the school district on the last Friday of September
of the current school year minus the number of students for whom the district
receives tuition except nonresident students who are in the care and custody of a state
agency and are attending a public school and students for whom tuition is being paid
pursuant to § 13-28-42.1, plus the number of students for whom the district pays
tuition;
(2C) "Small school adjustment," calculated as follows:
(a) For districts with a fall enrollment of two hundred or less, multiply 0.2 times
$4,237.72;
(b) For districts with a fall enrollment of greater than two hundred, but less than
six hundred, multiply the fall enrollment times negative 0.0005; add 0.3 to that
result; and multiply the sum obtained times $4,237.72;
(3) "Index factor," is the annual percentage change in the consumer price index for urban
wage earners and clerical workers as computed by the Bureau of Labor Statistics of
the United States Department of Labor for the year before the year immediately
preceding the year of adjustment or three percent, whichever is less;
(4) "Per student allocation," for school fiscal year 2009 2011 is $4,664.66 $4,804.60.
Each school fiscal year thereafter, the per student allocation is the previous fiscal
year's per student allocation increased by the index factor;
(5) "Local need," is the sum of:
(a) The per student allocation multiplied by the fall enrollment; and
(b) The small school adjustment, if applicable, multiplied by the fall enrollment;
and
(c) The payment distributed pursuant to § 13-13-80, if applicable;
(6) "Local effort," the amount of ad valorem taxes generated in a school fiscal year by
applying the levies established pursuant to § 10-12-42;
(7) "General fund balance," the unreserved fund balance of the general fund, less general
fund exclusions plus, beginning with transfers made in fiscal year 2001, any transfers
out of the general fund for the previous school fiscal year;
(8) "General fund balance percentage," is a school district's general fund balance divided
by the school district's total general fund expenditures for the previous school fiscal
year, the quotient expressed as a percent;
(9) "General fund base percentage," is the lesser of:
(a) The general fund balance percentage as of June 30, 2000; or
(b) The maximum allowable percentage for that particular fiscal year as stated in
this subsection.
For fiscal year 2008, the maximum allowable percentage is one hundred percent; for
fiscal year 2009, eighty percent; for fiscal year 2010, sixty percent; for fiscal year
2011, forty percent; for fiscal year 2012 and subsequent fiscal years, twenty-five
percent. However, the general fund base percentage can never be less than twenty-five percent;
(10) "Allowable general fund balance," the general fund base percentage multiplied by the
district's general fund expenditures in the previous school fiscal year;
(11) "General fund exclusions," revenue a school district has received from the imposition
of the excess tax levy pursuant to § 10-12-43; revenue a school district has received
from gifts, contributions, grants, or donations; revenue a school district has received
under the provisions of §§ 13-6-92 to 13-6-96, inclusive; revenue a school district
has received as compensation for being a sparse school district under the terms of
§§ 13-13-78 and 13-13-79; any revenue a school district has received under the
provisions of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5);
and any revenue in the general fund set aside for a noninsurable judgment.
Section 2. That § 13-37-35.1 be amended to read as follows:
13-37-35.1. Terms used in chapter 13-37 mean:
(1) "Level one disability," a mild disability;
(2) "Level two disability," cognitive disability or emotional disorder;
(3) "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, orthopedic impairment, or traumatic brain injury;
(4) "Level four disability," autism;
(5) "Level five disability," multiple disabilities;
(5A) "Level six disability," prolonged assistance;
(6) "Index factor," is the annual percentage change in the consumer price index for urban
wage earners and clerical workers as computed by the Bureau of Labor Statistics of
the United States Department of Labor for the year before the year immediately
preceding the year of adjustment or three percent, whichever is less;
(7) "Local effort," shall be calculated for taxes payable in 2011 and shall be the amount
of revenue that could have been generated for the taxes payable in 2010 using a
special education levy of one dollar and twenty cents per one thousand dollars of
valuation increased by the lesser of three percent or the index factor, as defined in
§ 10-13-38, plus a percentage increase of value resulting from any improvements or
change in use of real property, annexation, minor boundary changes, and any
adjustments in taxation of real property separately classified and subject to statutory
adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except
§ 10-6-31.4, only if assessed the same as property of equal value.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of local effort
shall be increased by the lesser of three percent or the index factor, established
pursuant to § 10-13-38 plus a percentage increase of value resulting from any
improvements or change in use of real property, annexation, minor boundary
changes, and any adjustments in taxation of real property separately classified and
subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and
10-6B, except § 10-6-31.4, only if assessed the same as property of equal value;
(8) "Allocation for a student with a level one disability," for the school fiscal year
beginning July 1, 2009 2010, is $4,057. For each school year thereafter, the allocation
for a student with a level one disability shall be the previous fiscal year's allocation
for such child increased by the lesser of the index factor or three percent;
(9) "Allocation for a student with a level two disability," for the school fiscal year
beginning July 1, 2009 2010, is $9,471. For each school year thereafter, the allocation
for a student with a level two disability shall be the previous fiscal year's allocation
for such child increased by the lesser of the index factor or three percent;
(10) "Allocation for a student with a level three disability," for the school fiscal year
beginning July 1, 2009 2010, is $15,220. For each school year thereafter, the
allocation for a student with a level three disability shall be the previous fiscal year's
allocation for such child increased by the lesser of the index factor or three percent;
(11) "Allocation for a student with a level four disability," for the school fiscal year
beginning July 1, 2009 2010, is $13,164. For each school year thereafter, the
allocation for a student with a level four disability shall be the previous fiscal year's
allocation for such child increased by the lesser of the index factor or three percent;
(12) "Allocation for a student with a level five disability," for the school fiscal year
beginning July 1, 2009 2010, is $16,539. For each school year thereafter, the
allocation for a student with a level five disability shall be the previous fiscal year's
allocation for such child increased by the lesser of the index factor or three percent;
(12A) "Allocation for a student with a level six disability," for the school fiscal year
beginning July 1, 2009 2010, is $8,438. For each school year thereafter, the allocation
for a student with a level six disability shall be the previous fiscal year's allocation
for such child increased by the lesser of the index factor or three percent;
(13) "Child count," is the number of students in need of special education or special
education and related services according to criteria set forth in rules promulgated
pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education in
accordance with rules promulgated pursuant to § 13-37-1.1;
(14) "Fall enrollment," the number of kindergarten through twelfth grade pupils enrolled
in all schools operated by the school district on the last Friday of September of the
previous school year minus the number of students for whom the district receives
tuition, except any nonresident student who is in the care and custody of a state
agency and is attending a public school and any student for whom tuition is being
paid pursuant to § 13-28-42.1, plus the number of students for whom the district pays
tuition;
(15) "Nonpublic school," a sectarian organization or entity which is accredited by the
secretary of education for the purpose of instructing children of compulsory school
age. This definition excludes any school that receives a majority of its revenues from
public funds;
(16) "Nonpublic fall enrollment," until June 30, 2008, the number of children under age
sixteen, and beginning July 1, 2009, the number of children under age eighteen, who
are approved for alternative instruction pursuant to § 13-27-2 on the last Friday of
September of the previous school year plus:
(a) For nonpublic schools located within the boundaries of a public school district
with a fall enrollment of six hundred or more on the last Friday of September
of the previous school year, the number of kindergarten through twelfth grade
pupils enrolled on the last Friday of September of the previous regular school
year in all nonpublic schools located within the boundaries of the public
school district;
(b) For nonpublic schools located within the boundaries of a public school district
with a fall enrollment of less than six hundred on the last Friday of September
of the previous school year, the number of resident kindergarten through
twelfth grade pupils enrolled on the last Friday of September of the previous
school year in all nonpublic schools located within the State of South Dakota;
(17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;
(18) "Local need," an amount to be determined as follows:
(a) Multiply the special education fall enrollment by 0.1062 and multiply the
result by the allocation for a student with a level one disability;
(b) Multiply the number of students having a level two disability as reported on
the child count for the previous school fiscal year by the allocation for a
student with a level two disability;
(c) Multiply the number of students having a level three disability as reported on
the child count for the previous school fiscal year by the allocation for a
student with a level three disability;
(d) Multiply the number of students having a level four disability as reported on
the child count for the previous school fiscal year by the allocation for a
student with a level four disability;
(e) Multiply the number of students having a level five disability as reported on
the child count for the previous school fiscal year by the allocation for a
student with a level five disability;
(f) Multiply the number of students having a level six disability as reported on the
child count for the previous school fiscal year by the allocation for a student
with a level six disability;
(g) Sum the results of (a) through (f);
(19) "Effort factor," for taxes payable in 2011, 2012, 2013, 2014, and 2015, the effort
factor is the amount of taxes payable for the year divided by the amount of local
effort as calculated in subdivision (7). The maximum effort factor is 1.0.
Signed March 26, 2010