ENTITLED, An Act
to revise the funding of special education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
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That subdivision (9) of section 1 of chapter 108 of the 1996 Session Laws be repealed.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:
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That section 3 of chapter 108 of the 1996 Session Laws be repealed.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, unless the school district certifies to the secretary of education and cultural affairs that its
ending special education fund balance will not exceed five percent of its special education
expenditures for the 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 0.95.
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 0.027;
(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 $37,038,226 $0 $0 $37,038,226
Total $37,038,226 $0 $0 $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.
Section
15.
The Department of Education and Cultural Affairs shall collect from all public
school districts and educational cooperatives detailed financial reports containing special education
expenditures for the school years ending in 1997 and 1998 on forms prescribed by the secretary of
education and cultural affairs. The reports shall state special education expenditures by disability
category as defined in ARSD 24:05:24:01, which was in effect on July 1, 1997, including staffing
levels, specific contracted services, transportation costs, indirect costs, and any other data deemed
pertinent by the secretary of education and cultural affairs.
Each school district shall file the report containing special education expenditures for the school
year ending in June 1997 by July 10, 1998, or sixty days after the Department of Education and
Cultural Affairs makes the forms available to the school district, whichever is later. If complete and
accurate reports are not filed by this date and an extension has not been granted by the secretary of
education and cultural affairs, the school district shall forfeit from its foundation aid entitlement one
hundred dollars for each day that the data is past due for seven days and two hundred dollars for each
day past due thereafter starting with the eighth day.
Each school district shall file the report containing special education expenditures for the school
year ending in June 1998 by October 16, 1998, or sixty days after the Department of Education and
cultural Affairs makes the forms available to the school district, whichever is later. If complete and
accurate reports are not filed by this date and an extension has not been granted by the secretary of
education and cultural affairs, the school district shall forfeit from its foundation aid entitlement one
hundred dollars for each day that the data is past due for seven days and two hundred dollars for each
day past due thereafter starting with the eighth day.
The secretary of education and cultural affairs shall report the findings of both reports to the
Governor and the Legislature by January 15, 1999.
An Act to revise the funding of special education.
=========================
I certify that the attached
Act
originated in the
SENATE as
Bill
No.
120
|
____________________________
Secretary of the Senate
=========================
____________________________
President of the Senate
____________________________
Secretary of the Senate
____________________________
Speaker of the House
____________________________
Chief Clerk
Senate
Bill
No.
120
File No. ____
Chapter No. ______
|
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Received at this Executive Office
this ____ day of _____________ ,
19___ at _____ M.
| By _________________________
for the Governor
=========================
The attached Act is hereby
approved this ________ day of
______________ , A.D., 19___
____________________________
Governor
=========================
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 19___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State