An Act to modify the maximum sparsity benefit a sparse school district is eligible to receive.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 13-13-79 be AMENDED:

13-13-79. At the same time that state aid is distributed to school districts pursuant to §§ 13-13-10.1 to 13-13-41, inclusive, the secretary of the Department of Education shall must distribute funds to sparse school districts by multiplying the result of the calculation in either subdivision 13-13-78(2) or subdivision 13-13-78(3) by seventy-five percent of the per student equivalent as defined in § 13-13-10.1. However, provided that no sparse school district may receive receives a sparsity benefit that exceeds exceeding one hundred ten seventy-five thirty-seven thousand dollars in any fiscal year.

Beginning on July 1, 2026, the maximum amount that a sparse school district may receive under this section increases annually by the index factor, as defined in § 13-13-10.1.