73rd Legislative Session -- 1998

Committee: Senate Education

Wednesday, February 4, 1998

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Ham
P      Hutmacher
P      Lange
P      Reedy
P      Rounds
P      Paisley, Vice-Chair
P      Everist, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Vice Chair Paisley


MOTION:      TO APPROVE THE MINUTES OF February 2

Moved by:      Senator Ham
Second by:      Senator Hutmacher
Action:      Prevailed by voice vote.

          SB 120:   to require a school district to levy the maximum special education tax levy to qualify for state aid to special education.

Proponents:      Senator Everist

MOTION:      AMEND SB 120

c-120

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

"      Section 1. That subdivision (9) of section 1 of chapter 108 of the 1996 Session Laws be repealed.

     Section 2. That section 2 of chapter 108 of the 1996 Session Laws be amended to read as follows:



     This Section 1 of this Act is effective July 1, 1999.

     Section 3. That section 3 of chapter 108 of the 1996 Session Laws be repealed.

     Section 4. That section 4 of chapter 108 of the 1996 Session Laws be amended to read as follows:

     A school district is not eligible for funding from the money set aside in § §  13-37-38 to 13-37- 40, inclusive, if the school district's unless the school district certifies to the secretary of education and cultural affairs that its ending special education fund balance exceeds will not exceed five percent of its special education expenditures for the prior current fiscal year.

     Section 5. That § 13-37-44 be amended to read as follows:

     13-37-44.   A school district's state aid for special education shall be reduced by the amount which its ending special education fund balance exceeds twenty percent of its special education expenditures for the prior fiscal year or fifty thousand dollars, whichever is greater, if the school district did not receive money set aside in § §  13-37-38 to 13-37-40, inclusive, during the prior fiscal year; or the amount which its ending special education fund balance exceeds five percent of its special education expenditures for the prior fiscal year if the school district received money set aside in § §  13-37-38 to 13-37-40, inclusive, during the prior fiscal year .

     Section 6. Section 5 of this Act is effective July 1, 1999.

     Section 7. That § 13-37-43 be amended to read as follows:

     13-37-43.   For the transition period from January 1, 1997, through school fiscal year 1999, state aid to special education shall be determined according to the following calculations:

             (1)      For the period January 1, 1997, through June 30, 1997, state aid for special education is the greater of (a) state aid for special education as calculated in §   13-37-36, or (b) actual school special education expenditures for fiscal year 1994 less federal revenues for special education less local effort, the result which is multiplied times 0.59;

             (2)      For school fiscal year 1998, state aid for special education is the greater of (a) state aid for special education as calculated in §   13-37-36, or (b) actual school special education expenditures for fiscal year 1994 less federal revenues for special education less local effort, the result which is multiplied times 0.95;

             (3)      For school fiscal year 1999, state aid for special education is the greater of (a) state aid for special education as calculated in §   13-37-36, or (b) actual school special education expenditures for fiscal year 1994 less federal revenues for special education less local effort, the result which is multiplied times 0.48 0.95 .

     Section 8. That § 13-37-35 be amended to read as follows:

     13-37-35.   Terms used in § §   13-37-35 to 13-37-47, inclusive, mean:

             (1)      "Average daily membership," the average number of kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year minus the average number of pupils for whom the district receives tuition and plus the average number of pupils for whom the district pays tuition;

             (2)      "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;

             (3)      "Local effort," is the amount of taxes payable each year, using the maximum levy for the special education fund of a school district of one dollar and forty cents per thousand dollars of taxable valuation. The levy shall be based on valuations including valuations pursuant to § §   13-13-10.2 and 13-13-20.4 such that the median level of assessment represents 85% of market value as determined by the Department of Revenue. For the period January 1, 1997, through June 30, 1997, local effort shall be one-half of the amount of taxes payable in calendar year 1997, using the maximum levy for the special education fund of a school district of one dollar and forty cents per thousand dollars of taxable valuation. The levy shall be based on valuations such that the median level of assessment represents 85% of market value as determined by the Department of Revenue;

             (4)      "Allocation for a student with a mild disability," for the period January 1, 1997, through June 30, 1997, is $807. For school fiscal year beginning July 1, 1997, the allocation for a student with a mild disability shall be $1,614 increased by the lesser of the index factor or three percent. For each school year thereafter, the allocation for a student with a mild disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

             (5)      "Allocation for a student with a severe disability," for the period January 1, 1997, through June 30, 1997, is $9,682. For school fiscal year beginning July 1, 1997, the allocation for a child with a severe disability shall be $19,364 increased by the lesser of the index factor or three percent. For each school year thereafter, the allocation for a child with a severe disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

             (6)      "Local need," an amount to be determined as follows:

             (a)      For a school district with an average daily membership of less than 13,000:

             (i)      Multiply the average daily membership times 0.1025;
             (ii)      Multiply the result of (i) times the allocation for a student with a mild disability;
             (iii)      Multiply the average daily membership times 0.015;
             (iv)      Multiply the result of (iii) times the allocation for a student with a severe disability;
             (v)      Add together the result of (ii) and the result of (iv);

             (b)      For a school district with an average daily membership greater than 13,000:

             (i)      Multiply the average daily membership times 0.1025;
             (ii)      Multiply the result of (i) times the allocation for a student with a mild disability;
             (iii)      Subtract 13,000 from the average daily membership, the difference of which is multiplied times 0.0000034, the result of which is added to 0.015;
             (iv)      Multiply the average daily membership times the lesser of the result of (iii) or 0.03 0.027 ;
             (v)      Multiply the result of (iv) times the allocation for a student with a severe disability;
             (vi)      Add together the result of (ii) and the result of (v);

             (7)      "Student with mild disability," is a student whose performance level is not sufficient to demonstrate success in the regular education environment without the provision of special education, who meets eligibility criteria under Part B, IDEA, and who has been identified as a student in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §   13-37-46;

             (8)      "Student with severe disability," is a student with a low-incidence disability who:

             (a)      Meets eligibility criteria under Part B, IDEA;

             (b)      Has been identified as a student in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §   13-37-46; and

             (c)      Presents needs which require intervention skills which are substantially different from those provided to nondisabled students, in that the skills are disability-specific and require special training, equipment, and facilities to perform;

             (9)      "Effort factor," the school district's special education tax levy in dollars per thousand divided by $1.40.

     Section 9. That section 12 of chapter 34 of the 1997 Session Laws be amended to read as follows:

State Aid for Special Education
    Personal Services $0        $0    $0    $0
    Operating Expenses $37,875,924 $37,038,226     $0    $0     $37,875,924 $37,038,226
    Total     $37,875,924 $37,038,226     $0    $0     $37,875,924 $37,038,226 0.0


     Section 10.That § 13-37-39 be amended to read as follows:

     13-37-39.   Subject to the limitation in §   13-37-42, the secretary of the Department of Education and Cultural Affairs shall, for school fiscal year 1998, set aside four percent (4%) of the state special education appropriation for extraordinary expenses incurred in providing special education programs or services to one or more children with disabilities, with expenditures to be made as recommended by an oversight board and approved by the secretary of the Department of Education and Cultural Affairs. Any funds not expended or obligated pursuant to this section shall not be subject to reversion pursuant to §  4-8-19. The maximum amount not subject to reversion is equal to 5.75% of the state special education appropriation.

     Section 11. Sections 9 and 10 of this Act are effective June 15, 1998.

     Section 12. That § 13-37-40 be amended to read as follows:

     13-37-40.   Subject to the limitation in §   13-37-42, the secretary of the Department of Education and Cultural Affairs shall, for school fiscal year 1999 and each year thereafter, set aside 5.75% of the state special education appropriation for extraordinary expenses incurred in providing special education programs or services to one or more children with disabilities, with expenditures to be made as recommended by an oversight board and approved by the secretary of the Department of Education and Cultural Affairs. Any funds not expended or obligated pursuant to this section shall not be subject to reversion pursuant to §  4-8-19. The maximum amount not subject to reversion is equal to 5.75% of the state special education appropriation.

     Section 13. That chapter 13-16 be amended by adding thereto a NEW SECTION to read as follows:

     The South Dakota Board of Education may promulgate rules pursuant to chapter 1-26 to identify allowable expenditures from the special education fund.

     Section 14. That chapter 13-16 be amended by adding thereto a NEW SECTION to read as follows:

     Each school district shall file the annual financial report pursuant to §  13-8-47 using the uniform accounting system as defined in the accounting manual developed pursuant to §  4-11-6. Reports not filed prior to August fifteenth are considered past due and are subject to the past-due provisions of §  13-13-38. "



Moved by:      Senator Everist
Second by:      Senator Rounds
Action:      Prevailed by voice vote.

MOTION:      DEFER SB 120 UNTIL a later date

Moved by:      Senator Everist
Second by:      Senator Hutmacher
Action:      Prevailed by voice vote.

          SB 121:   to revise the reduction in state aid to special education based upon a school district's ending special education fund balance.

Proponents:      Senator Everist, Sponsor

MOTION:      DEFER SB 121 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Senator Everist
Second by:      Senator Lange
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Ham, Hutmacher, Lange, Reedy, Rounds, Paisley, Everist

          Gavel returned to Chair Everist

          SB 190:   to revise the funding of special education.

Proponents:      Senator Paisley, Sponsor

MOTION:      DEFER SB 190 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Senator Rounds
Second by:      Senator Ham
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Ham, Hutmacher, Lange, Reedy, Rounds, Paisley, Everist

          SB 200:   to repeal the waiver of academic achievement tests for special education students.

Proponents:      Senator Ham, Sponsor
          Deb Barnett, DECA
          Robert Kiehn,Advocacy Service
          Christie Johnson, SASD

MOTION:      DO PASS SB 200

Moved by:      Senator Paisley
Second by:      Senator Rounds
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Ham, Hutmacher, Lange, Reedy, Rounds, Paisley, Everist

MOTION:      PLACE SB 200 ON CONSENT

Moved by:      Senator Lange
Second by:      Senator Rounds
Action:      Prevailed by voice vote.

          SB 149:   to revise certain provisions relating to contracting school districts that do not operate a K-12 school.

Proponents:      Todd Vik, Fin & Management, Dept of Education
          George Valentine, School Boards

MOTION:      SUBSTITUTE MOTION AMEND SB 149

c-149b

     On the previous amendment, after Section 3, insert:

"      Section 4. That § 13-15-14.2 be repealed.

     13-15-14.2.   Any school district that enters into contractual agreements pursuant to §   13-15-1.3 or 13-15-11 for the first time after July 1, 1989, shall within four years of commencement of the contractual agreement, operate an elementary school and a secondary school within the boundary of the school district, reorganize the school district pursuant to chapter 13-6 or adjust its taxation pursuant to §   §   13-11-9 to 13-11-11, inclusive. Any school district that entered into a contractual agreement pursuant to §   13-15-1.3 before July 1, 1989, shall within three years of July 1, 1990, operate an elementary school and a secondary school within the boundary of the school district, reorganize the school district pursuant to chapter 13-6 or adjust its taxation pursuant to §   §   13-11-9 to 13-11-11, inclusive. "


     Section 5. That chapter 13-15 be amended by adding thereto a NEW SECTION to read as follows:

     Any school district that enters into contractual agreements pursuant to §  13-15-11 and sends over fifty percent of its resident students enrolled in grades for which it contracts to an adjoining school district or districts located in South Dakota shall reorganize the school district pursuant to chapter 13-6 within two years of the end of the school year. For the purposes of this section, the number of students attending adjoining districts shall be based on general enrollment average daily membership pursuant to §  13-13-10.1(1).

     Section 6. That § 13-11-9 be amended to read as follows:

     13-11-9.   For any school district that is sending its students to an adjoining school district pursuant to §  13-15-1.3, the county auditor shall spread a levy over the taxable property of the sending school district sufficient to raise the sending school district's tax levy per one thousand dollars of taxable valuation up to the weighted average tax levy per one thousand dollars of taxable

valuation of the receiving school districts. The weighted average tax levy shall be calculated pursuant to §  13-11-10. This section does not apply to a school district that operates a secondary school or enters into contractual agreements pursuant to §  13-15-11 .



Moved by:      Senator Everist
Second by:      Senator Lange
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 149 AS AMENDED

Moved by:      Senator Rounds
Second by:      Senator Reedy
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Ham, Hutmacher, Lange, Reedy, Rounds, Paisley, Everist

MOTION:      TO AMEND TITLE OF SB 149

c-149t

     On page 1 , line 1 of the printed bill , delete " contracting school " and insert " the formation of school districts and contractual agreements among school districts. " .

     On page 2 , delete line 2 .


Moved by:      Senator Rounds
Second by:      Senator Hutmacher
Action:      Prevailed by voice vote.

          SB 111:   to permit borrowing between school district funds.

Proponents:      Senator Hutmacher, Sponsor
          Dean Dayton, Legislative Audit
          Henry Koster, ASBSD

MOTION:      AMEND SB 111

f-111

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

"


     Section  1.  A political subdivision may loan all or any portion of a fund, not otherwise obligated, to another fund of that political subdivision for a term not to exceed five years. If money is loaned from one fund to another fund, the repayment to the original fund may not include any payment of interest, fees, or other charges. "


Moved by:      Senator Hutmacher
Second by:      Senator Lange
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 111 AS AMENDED

Moved by:      Senator Paisley
Second by:      Senator Reedy
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Ham, Hutmacher, Lange, Reedy, Rounds, Paisley, Everist

MOTION:      TO AMEND TITLE OF SB 111

f-111t

     On page 1 , line 1 of the printed bill , delete everything after " to " and insert " permit a political subdivision to loan all or any portion of a fund to another fund under certain conditions. " .


Moved by:      Senator Lange
Second by:      Senator Ham
Action:      Prevailed by voice vote.

MOTION:      ADJOURN

Moved by:      Senator Hutmacher
Second by:      Senator Reedy
Action:      Prevailed by voice vote.



Margaret Nickels

_________________________________

Committee Secretary
Barbara Everist, Chair


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