94th Legislative Session _ 2019

Committee: House Education
Wednesday, February 20, 2019

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Brunner
P    Deutsch
P    Johns
P    Latterell
P    Marty
P    Olson
E    Randolph
P    Rasmussen
P    Reimer
P    Steele
P    Wiese
E    Healy
P    Ring
P    Glanzer, Vice-Chair
P    Greenfield (Lana), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Lana Greenfield.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 13, 2019

Moved by:    Brunner
Second by:    Reimer
Action:    Prevailed by voice vote.

    HB 1149: provide an appropriation for the Native American achievement schools grant program.

Proponents:    Senator Troy Heinert


Opponents:    Derek Johnson, Bureau of Finance and Management

MOTION:    DEFER HB 1149 TO THE 41ST LEGISLATIVE DAY

Moved by:    Deutsch
Second by:    Latterell
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DO PASS HB 1149

Moved by:    Olson
Second by:    Ring
Action:    Failed by roll call vote. (4-9-2-0)

Voting Yes:    Johns, Olson, Rasmussen, Ring

Voting No:    Brunner, Deutsch, Latterell, Marty, Reimer, Steele, Wiese, Glanzer, Greenfield (Lana)

Excused:    Randolph, Healy

MOTION: DEFER HB 1149 TO THE 41ST LEGISLATIVE DAY

Moved by:    Deutsch
Second by:    Latterell
Action:    Prevailed by roll call vote. (9-4-2-0)

Voting Yes:    Brunner, Deutsch, Latterell, Marty, Reimer, Steele, Wiese, Glanzer, Greenfield (Lana)

Voting No:    Johns, Olson, Rasmussen, Ring

Excused:    Randolph, Healy

    HB 1150: establish a nonbeneficiary student scholarship program for certain students attending tribally controlled colleges and to make an appropriation therefor.

Proponents:    Representative Shawn Bordeaux
        Senator Troy Heinert
Opponents:    Brittni Skipper, Bureau of Finance and Management

MOTION:    DO PASS HB 1150



Moved by:    Ring
Second by:    Rasmussen
Action:    Failed by roll call vote. (3-10-2-0)

Voting Yes:    Rasmussen, Steele, Ring

Voting No:    Brunner, Deutsch, Johns, Latterell, Marty, Olson, Reimer, Wiese, Glanzer, Greenfield (Lana)

Excused:    Randolph, Healy

MOTION:    DEFER HB 1150 TO THE 41ST LEGISLATIVE DAY

Moved by:    Brunner
Second by:    Reimer
Action:    Prevailed by roll call vote. (9-4-2-0)

Voting Yes:    Brunner, Deutsch, Johns, Marty, Olson, Reimer, Wiese, Glanzer, Greenfield (Lana)

Voting No:    Latterell, Rasmussen, Steele, Ring

Excused:    Randolph, Healy

    HB 1220: accommodate legislation to enhance education.

Proponents:    Representative Lana Greenfield

MOTION:    AMEND HB 1220

1220ka

    On the printed bill, delete everything after the enacting clause and insert:

"    Section 1. That § 13-13-10.1 be amended to read:

    13-13-10.1. The education funding terms and procedures referenced in this chapter are defined as follows:

            (1)    Repealed by SL 2016, ch 83, § 4;
            (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 fall enrollment of the

receiving district when enrolled in the receiving district;

            (2)    Repealed by SL 2016, ch 83, § 4;
            (2A)    "Fall enrollment," or "Spring enrollment," is calculated as follows:
            (a)    Determine 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 for fall enrollment or the last Friday in January of the current school year for spring enrollment;
            (b)    Subtract the number of students for whom the district receives tuition except for:
            (i)    Nonresident students who are in the care and custody of a state agency and are attending a public school district;
            (ii)    Students who are being provided an education pursuant to § 13-28-11; and
            (iii)    Students for whom tuition is being paid pursuant to § 13-28-42.1; and
            (c)    Add the number of students for whom the district pays tuition.
                When computing state aid to education for a school district pursuant to § 13-13-73, the secretary of the Department of Education shall use the school district's fall enrollment for the first six months of the current fiscal year and the spring enrollment for the remaining six months of the current fiscal year;
            (2B)    Repealed by SL 2010, ch 84, § 1;
            (2C)    "Target teacher ratio factor," is:
            (a)    For school districts with a fall or spring enrollment of two hundred or less, the target teacher ratio factor is 12;
            (b)    For districts with a fall or spring enrollment of greater than two hundred, but less than six hundred, the target teacher ratio factor is calculated as follows:
            (1)    Multiplying the fall or spring enrollment by .00750;
            (2)    Adding 10.50 to the product of subsection (b)(1);
            (c)    For districts with a fall or spring enrollment of six hundred or greater, the target teacher ratio factor is 15.
                The fall or spring enrollment used for the determination of the target teacher ratio for a school district may not include any students residing in a residential treatment facility when the education program is operated by the school district;
            (2D)    "Limited English proficiency (LEP) adjustment," is calculated by multiplying 0.25 times the number of kindergarten through twelfth grade students who, in the prior school year, scored below level four on the state-administered language proficiency assessment as required in the state's consolidated state application pursuant to 20 USC § 6311(b)(7) as of January 1, 2013;
            (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)    "Target teacher salary," for the school fiscal year beginning July 1, 2018 is $49,131.96. Each school fiscal year thereafter, the target teacher salary is the previous fiscal year's target teacher salary increased by the index factor;
            (4A)    "Target teacher benefits," is the target teacher salary multiplied by twenty-nine percent;
            (4B)    "Target teacher compensation," is the sum of the target teacher salary and the target teacher benefits;
            (4C)    "Overhead rate," is thirty-one and sixty-seven hundredths percent.
                Beginning in school fiscal year 2018, the overhead rate shall be adjusted to take into account the sum of the amounts that districts exceed the other revenue base amount;
            (5)    "Local need," is calculated as follows:
            (a)    Divide the fall or spring enrollment by the target teacher ratio factor;
            (b)    If applicable, divide Limited English proficiency (LEP) adjustment pursuant to subdivision (2D) by the target teacher ratio factor;
            (c)    Add the results of subsections (a) and (b);
            (d)    Multiply the result of subsection (c) by the target teacher compensation;
            (e)    Multiply the product of subsection (d) by the overhead rate;
            (f)    Add the products of subsections (d) and (e);
            (g)    When calculating local need at the statewide level, include the amounts set aside for costs related to technology in schools and statewide student assessments; and
            (h)    When calculating local need at the statewide level, include the amounts set aside for sparse school district benefits, calculated pursuant to §§ 13-13-78 and 13-13-79;
            (5A)    "Alternative per student need," is calculated as follows:
            (a)    Add the total need for each school district for school fiscal year 2016, including the small school adjustment and the limited English proficiency adjustment, to the lesser of the amount of funds apportioned to each school district in the year preceding the most recently completed school fiscal year or school fiscal year 2015 pursuant to §§ 13-13-4, 23A-27-25, 10-33-24, 10-36-10, 11-7-73, 10-35-21, and 10-43-77;
            (b)    Divide the result of (a) by the September 2015 fall enrollment, excluding any adjustments based on prior year student counts;
            (5B)    "Alternative local need," is the alternative per student need multiplied by the fall enrollment, excluding any adjustments based on prior year student counts;
            (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. Beginning on July 1, 2017, local effort will include the amount of funds apportioned to each school district in the year preceding the most recently completed school fiscal year pursuant to §§ 10-33-24, 10-35-21 as provided by subdivision (6B), 10-36-10, 10-43-77, 11-7-73, 13-13-4, and 23A-27-25 and that exceeds the other revenue base amount. For the period July 1, 2016, through December 31, 2016, inclusive, local effort includes the amount of ad valorem taxes generated by applying the levies established pursuant to § 13-10-6 during this period;
            (6A)    "Other revenue base amount," for school districts not utilizing the alternative local need calculation is the amount of funds apportioned to each school district pursuant to §§ 10-33-24, 10-35-21 as provided by subdivision (6B), 10-36-10, 10-43-77, 11-7-73, 13-13-4,

and 23A-27-25 calculated as follows:

            (a)    Beginning on July 1, 2017, equals the greatest of the amounts of the funds apportioned to each school district pursuant to §§ 10-33-24, 10-35-21 as provided by subdivision (6B), 10-36-10, 10-43-77, 11-7-73, 13-13-4, and 23A-27-25 for school fiscal years 2013, 2014, and 2015;
            (b)    Beginning on July 1, 2018, multiply eighty percent times subsection (a);
            (c)    Beginning on July 1, 2019, multiply sixty percent times subsection (a);
            (d)    Beginning on July 1, 2020, multiply forty percent times subsection (a);
            (e)    Beginning on July 1, 2021, multiply twenty percent times subsection (a);
            (f)    Beginning on July 1, 2022, is zero.
                For school districts utilizing the alternative local need calculation, the other revenue base amount is zero until such time the school district chooses to no longer utilize the alternative local need calculation. At that time, the other revenue base amount is calculated as defined above.
                For a school district created or reorganized after July 1, 2016, the other revenue base amount is the sum of the other revenue base amount for each district before reorganization, and the new school district may not utilize the alternative local need calculation.
                In the case of the dissolution and annexation of a district, the other revenue base amount of the dissolved school district will be prorated based on the total number of students in the fall or spring enrollment as defined in subdivision (2A) who attend each district to which area of the dissolved district were annexed to in the first year of reorganization. The amount apportioned for each district will be added to the annexed districts' other revenue base;
            (6B)    "Wind energy tax revenue," any wind energy tax revenue apportioned to school districts pursuant to § 10-35-21 from a wind farm producing power for the first time before July 1, 2016, shall be considered local effort pursuant to subdivision (6) and other revenue base amount pursuant to subdivision (6A). However, any wind energy tax revenue apportioned to a school district from a wind farm producing power for the first time after June 30, 2016, one hundred percent shall be retained by the school district to which the tax revenue is apportioned for the first five years of producing power, eighty percent for the sixth year, sixty percent for the seventh year, forty percent for the eighth year, twenty percent for the ninth year, and zero percent thereafter;
            (7)    "Per student equivalent," for funding calculations that are determined on a per student basis, the per student equivalent is calculated as follows:
            (a)    Multiply the target teacher compensation times the sum of one plus the overhead rate;
            (b)    Divide subsection (a) by 15;
            (8)    "Monthly cash balance," the total amount of money for each month in the school district's general fund, calculated by adding all deposits made during the month to the beginning cash balance and deducting all disbursements or payments made during the month;
            (9)    "General fund base percentage," is determined as follows:
            (a)    Forty percent for a school district with a fall or spring enrollment as defined in subdivision (2A) of two hundred or less;
            (b)    Thirty percent for a school district with fall or spring enrollment as defined in subdivision (2A) of more than two hundred but less than six hundred; and
            (c)    Twenty-five percent for a school district with fall or spring enrollment as defined in subdivision (2A) greater than or equal to six hundred.
                When determining the general fund base percentage, the secretary of the Department of Education shall use the lesser of the school district's fall or spring enrollment as defined in subdivision (2A) for the current school year or the school district's fall or spring enrollment from the previous two years;
            (10)    "Allowable general fund cash balance," the general fund base percentage multiplied by the district's general fund expenditures in the previous school year.

    Section 2. That § 13-13-10.5 be amended to read:

    13-13-10.5. For purposes of state aid to education, a student enrolled pursuant to § 13-28-41 or 13-28-51 shall be counted in a school's fall or spring enrollment as defined in § 13-13-10.1 in a proportion equal to the share of the student's enrollment in the school.

    Section 3. That § 13-13-73.6 be amended to read:

    13-13-73.6. The Department of Education shall calculate the following for each school district:

            (1)    The average teacher salary, based on data collected pursuant to §§ 13-8-47 and 13-3-51;
            (2)    The increase in local need pursuant to § 13-13-10.1, excluding any effect due to change in the school district's fall or spring enrollment and less the amount of revenue generated in school fiscal year 2016 pursuant to § 13-10-6 as a percentage increase, from fiscal year 2016 to fiscal year 2017; and
            (3)    The increase in average teacher compensation as a percentage increase, as defined in § 13-8-47, from fiscal year 2016 to fiscal year 2017.

    For each school district, the district's increase in average teacher compensation from fiscal year 2016 to 2017 shall be equal to at least eighty-five percent of the district's increase in local need, as defined in subdivision (2), from fiscal year 2016 to fiscal year 2017 and, notwithstanding any negotiated agreement, at least eighty-five percent of the increase in state aid to general education funding the school district receives for fiscal year 2017 less the amount of revenue generated in fiscal year 2016 pursuant to § 13-10-6 shall be used to increase instructional salaries and benefits for certified instructional staff.

    If a district fails to comply with the requirements of this section, state aid to general education funding to the district in fiscal year 2018 shall be decreased by an amount equal to fifty percent of the amount calculated in subdivision (2). For fiscal years 2019, 2020, and 2021, if a district's average

teacher compensation is less than the district's average teacher compensation in fiscal year 2017, state aid to general education funding to the district in the following fiscal year shall be reduced by an amount equal to five hundred dollars for each teacher employed in the school district.

    A school district may request a waiver from any penalty imposed under this section from the School Finance Accountability Board.

    Section 4. That § 13-13-78 be amended to read:

    13-13-78. Terms used in § 13-13-79 mean:

            (1)    "Sparse school district," a school district that meets each of the following criteria:
            (a)    Has a fall or spring enrollment per square mile of 0.50 or less;
            (b)    Has a fall or spring enrollment of five hundred or less;
            (c)    Has an area of four hundred square miles or more;
            (d)    Has at least fifteen miles between its secondary attendance center or centers and that of an adjoining district;
            (e)    Operates a secondary attendance center; and
            (f)    Levies ad valorem taxes at the maximum rates allowed pursuant to § 10-12-42 or more;
            (2)    "Sparsity fall enrollment," or "Sparsity spring enrollment," for sparse school districts with a fall or spring enrollment as defined in § 13-13-10.1 of less than eighty-three or greater than two hundred thirty-two, is calculated as follows:
            (a)    Divide the fall or spring enrollment as defined in § 13-13-10.1 by the area of the school district in square miles;
            (b)    Multiply the quotient obtained in subsection (a) times negative 0.125;
            (c)    Add 0.0625 to the product obtained in subsection (b); and
            (d)    Multiply the sum obtained in subsection (c) times the fall enrollment;
            (3)    "Sparsity adjusted fall enrollment," or "Sparsity adjusted spring enrollment," for sparse school districts with a fall or spring enrollment as defined in § 13-13-10.1 of at least eighty-three, but no more than two hundred thirty-two, subtract the fall or spring enrollment from two hundred thirty-two.

    Section 5. That § 13-13-82 be amended to read:

    13-13-82. An eligible school district shall receive an amount equal to the per student equivalent as defined in § 13-13-10.1 multiplied by the number of eligible students included in its fall or spring enrollment as defined in § 13-13-10.1. "



Moved by:    Greenfield (Lana)
Second by:    Reimer
Action:    Prevailed by voice vote.

    HB 1232: lower the compulsory age for school attendance.

Proponents:    Representative Lana Greenfield (Handout 1)
        Florence Thompson, self, Caputa, South Dakota
        Tonchi Weaver, South Dakota Citizens for Liberty
        Kathy Rice, Citizens for Academic Transparency
        Terry Nebolsick, self, Huron
Opponents:    Ben Jones, Secretary of Education
        Rob L. Monson, School Administrators of South Dakota
        Mark Winegar,Sierra Club
        Mary McCorkle, South Dakota Education Association

MOTION:    DO PASS HB 1232

Moved by:    Brunner
Second by:    Reimer
Action:    Prevailed by roll call vote. (8-6-1-0)

Voting Yes:    Brunner, Marty, Rasmussen, Reimer, Steele, Wiese, Glanzer, Greenfield (Lana)

Voting No:    Deutsch, Johns, Latterell, Olson, Healy, Ring

Excused:    Randolph

    HB 1247: establish minimum requirements for high school graduation.

MOTION:    TO TABLE HB 1247

Moved by:    Deutsch
Second by:    Brunner
Action:    Prevailed by roll call vote. (11-1-3-0)

Voting Yes:    Brunner, Deutsch, Olson, Rasmussen, Reimer, Steele, Wiese, Healy, Ring, Glanzer, Greenfield (Lana)

Voting No:    Marty

Excused:    Johns, Latterell, Randolph


    HB 1131: revise and enhance provisions regarding state education.

MOTION:    TO TABLE HB 1131

Moved by:    Wiese
Second by:    Steele
Action:    Prevailed by roll call vote. (12-1-2-0)

Voting Yes:    Brunner, Deutsch, Latterell, Olson, Rasmussen, Reimer, Steele, Wiese, Healy, Ring, Glanzer, Greenfield (Lana)

Voting No:    Marty

Excused:    Johns, Randolph

    HCR 1003: Instructing the Secretary of the Department of Education to undertake a study of high school graduation requirements in this state.

MOTION:    TO TABLE HCR 1003

Moved by:    Healy
Second by:    Deutsch
Action:    Prevailed by roll call vote. (13-0-2-0)

Voting Yes:    Brunner, Deutsch, Latterell, Marty, Olson, Rasmussen, Reimer, Steele, Wiese, Healy, Ring, Glanzer, Greenfield (Lana)

Excused:    Johns, Randolph

    HB 1270: protect the teaching of certain scientific information.

Proponents:    Senator Phil Jensen
        Bill Harris, self, Sioux Falls
Opponents:    Mark Winegar,Sierra Club
        Brett Arenz, Department of Education
        Rob L. Monson, School Administrators of South Dakota
        Mary McCorkle, South Dakota Education Association
        Gerry Kaufman, Associated School Boards of South Dakota
        Mitch Richter, United School Association of South Dakota
        Samuel J. Nelson, Sioux Falls School District


        Frank Kloucek, self, Scotland

MOTION:    DEFER HB 1270 TO THE 41ST LEGISLATIVE DAY

Moved by:    Healy
Second by:    Ring
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DO PASS HB 1270

Moved by:    Latterell
Second by:    Brunner
Action:    Prevailed by roll call vote. (8-6-1-0)

Voting Yes:    Brunner, Latterell, Marty, Rasmussen, Steele, Wiese, Glanzer, Greenfield (Lana)

Voting No:    Deutsch, Johns, Olson, Reimer, Healy, Ring

Excused:    Randolph

MOTION:    ADJOURN

Moved by:    Healy
Second by:    Steele
Action:    Prevailed by voice vote.

Sharon Johnson

____________________________

Committee Secretary
Lana Greenfield, Chair


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