77th Legislative Session _ 2002

Committee: House Education
Tuesday, February 05, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bartling
P    Begalka
P    Davis
P    Elliott
P    Garnos
P    Heineman
P    Juhnke
P    Kooistra
P    McCaulley
P    McCoy
P    Monroe
P    Van Norman
P    Wick
P    Smidt, Vice-Chair
P    Eccarius, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Scott Eccarius, Chair

MOTION:     TO APPROVE THE MINUTES OF JANUARY 31, 2002

Moved by:    Heineman
Second by:    Davis
Action:    Prevailed by voice vote.

          HB 1184: allow the excess tax levy for school districts to be expressed as a tax rate.

Presented By:    Representative Jaspers
Proponents:    Dianna Miller, ESD+5

Opponents:    Paul Kinsman, Department of Revenue

MOTION:     DO PASS HB 1184

Moved by:    Elliott
Second by:    Davis
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1184 TO THE 36TH LEGISLATIVE DAY

Moved by:    Begalka
Second by:    Smidt
Action:    Failed by roll call vote.(7-7-1-0)

Voting Yes:    Bartling, Begalka, Garnos, McCaulley, Wick, Smidt, Eccarius

Voting No:    Davis, Elliott, Heineman, Kooistra, McCoy, Monroe, Van Norman

Excused:    Juhnke

MOTION:     SUBSTITUTE MOTION WITHOUT RECOMMENDATION

Moved by:    Davis
Action:    Died for a lack of a second

MOTION:     DO PASS HB 1184

Moved by:    Elliott
Second by:    Davis
Action:    Failed by roll call vote.(7-7-1-0)

Voting Yes:    Davis, Elliott, Heineman, Kooistra, McCoy, Monroe, Van Norman

Voting No:    Bartling, Begalka, Garnos, McCaulley, Wick, Smidt, Eccarius

Excused:    Juhnke

MOTION:     DEFER HB 1184 UNTIL L

Action:    Died for a lack of a second

         HB 1105: revise the index factor in the state aid to education formula.

Presented By:    Representative Richard Brown
Proponents:    Penelope Douglas, SD Coalition of Small Schools
        Todd Vik, Sioux Falls School District
        Christie Johnson, SD School Administrators
        Gene Enck, SD Associated School Boards
Opponents:    Lona Lewis, SD Education Association
        Secretary Ray Christensen, Department of Education and Cultural Affairs

MOTION:     DO PASS HB 1105

Moved by:    Kooistra
Second by:    Bartling
Action:    Failed by roll call vote.(5-9-1-0)

Voting Yes:    Bartling, Elliott, Kooistra, McCaulley, Van Norman

Voting No:    Begalka, Garnos, Heineman, Juhnke, McCoy, Monroe, Wick, Smidt, Eccarius

Excused:    Davis

MOTION:     DEFER HB 1105 TO THE 36TH LEGISLATIVE DAY

Moved by:    Monroe
Second by:    Juhnke
Action:    Prevailed by roll call vote.(10-4-1-0)

Voting Yes:    Begalka, Garnos, Heineman, Juhnke, McCaulley, McCoy, Monroe, Wick, Smidt, Eccarius

Voting No:    Bartling, Elliott, Kooistra, Van Norman

Excused:    Davis

         HB 1096: revise the index factor in the state aid to education formula.

Presented By:    Representative Hennies
Proponents:    Bob Stevens, SD Education Association
        Gene Enck, SD Associated School Boards
        Christie Johnson, SD School Administrators
        Penelope Douglas, SD Coalition of Small Schools
MOTION:     TO RECESS UNTIL 7PM.

Moved by:    Eccarius
Second by:    Heineman
Action:    Prevailed by voice vote.

The House Education Committee was called to order by Chair Eccarius at 7PM.

         HB 1096: revise the index factor in the state aid to education formula.

Proponents:    Keith McVay, Marion School District
        Gail Swenson, Sioux Falls
Opponents:    Secretary Ray Christensen, Department Education and Cultural Affairs

MOTION:     DEFER HB 1096 TO THE 36TH LEGISLATIVE DAY

Moved by:    Heineman
Second by:    Wick
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS HB 1096

Moved by:    Davis
Second by:    Bartling
Action:    Failed by roll call vote.(5-9-1-0)

Voting Yes:    Bartling, Davis, Elliott, Kooistra, McCoy

Voting No:    Begalka, Garnos, Heineman, Juhnke, McCaulley, Monroe, Wick, Smidt, Eccarius

Excused:    Van Norman

MOTION:     DEFER HB 1096 TO THE 36TH LEGISLATIVE DAY

Moved by:    Heineman
Second by:    Wick
Action:    Prevailed by roll call vote.(9-5-1-0)

Voting Yes:    Begalka, Garnos, Heineman, Juhnke, McCaulley, Monroe, Wick, Smidt, Eccarius

Voting No:    Bartling, Davis, Elliott, Kooistra, McCoy

Excused:    Van Norman

         HB 1184: allow the excess tax levy for school districts to be expressed as a tax rate.

MOTION:     DEFER HB 1184 TO THE 36TH LEGISLATIVE DAY

Moved by:    McCaulley
Action:    Died for a lack of a second

MOTION:     AMEND HB 1184

1184db
     On page 1, after line 11 of the printed bill, insert:

"
     Section 2. That chapter 10-12 be amended by adding thereto a NEW SECTION to read as follows:

     If the excess levy authorized by § 10-12-43 is expressed as a rate of taxation in dollars per thousand dollars of taxable valuation, the rate of taxation shall be adjusted such that the total amount of tax revenue generated by the increase in the rate of taxation does not increase from one year to the next by a percentage increase greater than the index factor as defined in § 13-13-10.1.".

Moved by:    Wick
Second by:    Kooistra
Action:    Failed by voice vote.

 MOTION:     DO PASS HB 1184

Moved by:    Davis
Second by:    Kooistra
Action:    Prevailed by roll call vote.(8-7-0-0)

Voting Yes:    Bartling, Davis, Elliott, Garnos, Heineman, Kooistra, McCoy, Van Norman

Voting No:    Begalka, Juhnke, McCaulley, Monroe, Wick, Smidt, Eccarius

          HB 1213: affect education in South Dakota.

Presented By:    Representative McCaulley


MOTION:     DEFER HB 1213 TO THE 36TH LEGISLATIVE DAY

Moved by:    Davis
Second by:    Heineman
Action:    Prevailed by roll call vote.(15-0-0-0)

Voting Yes:    Bartling, Begalka, Davis, Elliott, Garnos, Heineman, Juhnke, Kooistra, McCaulley, McCoy, Monroe, Van Norman, Wick, Smidt, Eccarius

         HB 1101: provide funding to school districts for operating a school term greater than one hundred seventy-five days.

Presented By:    Representative Richter
Proponents:    Dianna Miller, ESD+5
        Penelope Douglas, SD Coalition of Small Schools
        Representative Bradford
Opponents:    Secretary Ray Christensen, Department of Education and Cultural Affairs

MOTION:     AMEND HB 1101

1101da
     On page 2 of the printed bill, delete lines 21 to 24 , inclusive.

     On page 3 , delete lines 1 to 3 , inclusive.

Moved by:    Kooistra
Second by:    Davis
Action:    Prevailed by roll call vote.(9-6-0-0)

Voting Yes:    Bartling, Begalka, Davis, Elliott, Garnos, Heineman, Kooistra, McCoy, Van Norman

Voting No:    Juhnke, McCaulley, Monroe, Wick, Smidt, Eccarius

 MOTION:     DO PASS HB 1101 AS AMENDED

Moved by:    Bartling
Second by:    Davis
Action:    Failed by roll call vote.(7-8-0-0)

Voting Yes:    Bartling, Davis, Elliott, Garnos, Kooistra, McCoy, Van Norman


Voting No:    Begalka, Heineman, Juhnke, McCaulley, Monroe, Wick, Smidt, Eccarius

 MOTION:     DEFER HB 1101 TO THE 36TH LEGISLATIVE DAY

Moved by:    Smidt
Second by:    Juhnke
Action:    Prevailed by roll call vote.(8-7-0-0)

Voting Yes:    Begalka, Heineman, Juhnke, McCaulley, Monroe, Wick, Smidt, Eccarius

Voting No:    Bartling, Davis, Elliott, Garnos, Kooistra, McCoy, Van Norman

          HB 1068: require the recalculation of the allocation for the disability levels in the state aid to special education formula.

Presented By:    Representative Richter
Proponents:    Dianna Miller, ESD+5
        Secretary Ray Christensen, Department of Education and Cultural Affairs
        Dan Nelson, Sioux Falls Area Chamber of Commerce
        Lona Lewis, SD Education Association

MOTION:     AMEND HB 1068

1068da
     On page 1, line 6 of the printed bill, delete " 2003 " and insert "2004".

Moved by:    McCoy
Second by:    Garnos
Action:    Prevailed by voice vote.

 MOTION:     DO PASS HB 1068 AS AMENDED

Moved by:    Monroe
Second by:    Heineman
Action:    Prevailed by roll call vote.(15-0-0-0)

Voting Yes:    Bartling, Begalka, Davis, Elliott, Garnos, Heineman, Juhnke, Kooistra, McCaulley, McCoy, Monroe, Van Norman, Wick, Smidt, Eccarius

 MOTION:     PLACE HB 1068 ON CONSENT CALENDAR

Moved by:    Wick
Second by:    McCoy
Action:    Prevailed by voice vote.

          HB 1199: revise certain provisions relating to the general fund levy of a school district.

Presented By:    Representative Richter
Proponents:    David Owen SD Commerce and Industry
        Other testimony taken previously
Opponents:    Paul Kinsman, Department of Revenue

MOTION:     DO PASS HB 1199

Moved by:    Heineman
Second by:    Smidt
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND HB 1199

1199ca
     On page 2 of the printed bill, delete lines 15 to 18 , inclusive, and insert:

"excess levy pursuant to § 10-12-43 before July 1, 2002 , the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section. If the district imposes an excess levy pursuant to § 10-12-43 on or after July 1, 2002, the excess levy shall be made in proportion to the taxable valuation without regard to the maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section.".


Moved by:    Davis
Second by:    Begalka
Action:    Prevailed by voice vote.

 MOTION:     DO PASS HB 1199 AS AMENDED

Moved by:    Wick
Second by:    Heineman
Action:    Was not acted on.

 MOTION:     SUBSTITUTE MOTION DEFER HB 1199 TO THE 36TH LEGISLATIVE DAY


Moved by:    Kooistra
Second by:    Bartling
Action:    Failed by roll call vote.(7-8-0-0)

Voting Yes:    Bartling, Elliott, Garnos, Juhnke, Kooistra, McCoy, Van Norman

Voting No:    Begalka, Davis, Heineman, McCaulley, Monroe, Wick, Smidt, Eccarius

 MOTION:     DO PASS HB 1199 AS AMENDED

Moved by:    Wick
Second by:    Heineman
Action:    Prevailed by roll call vote.(8-7-0-0)

Voting Yes:    Begalka, Davis, Heineman, McCaulley, Monroe, Wick, Smidt, Eccarius

Voting No:    Bartling, Elliott, Garnos, Juhnke, Kooistra, McCoy, Van Norman

          HB 1154: establish an alternative method for the calculation of average daily membership for school districts.

MOTION:     AMEND HB 1154

1154ca
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section 1. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     If a school district has an increase in average daily membership as defined in §  13-13-10.1 for each of the three previous school fiscal years, the average increase in average daily membership for the three-year period is the increased enrollment factor.

     Section 2. 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 increased enrollment factor plus 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 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;

             (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;

             (3A)      "Enrollment adjustment," is one-half of the negative of the annual percent change in the statewide general enrollment average daily membership for the year before the year immediately preceding the year of adjustment;

             (4)      "Per student allocation," for the period January 1, 1997, to June 30, 1997, inclusive, is $1,675. For school fiscal year 1998, beginning on July 1, 1997, the per student allocation shall be $3,350 increased by the index factor. Each school fiscal year thereafter, the per student allocation shall be the previous fiscal year's per student allocation increased by the index factor, plus the enrollment adjustment;

             (5)      "Local need," the per student allocation multiplied by the adjusted average daily membership;
             (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 general fund balance percentage as of June 30, 2000. However, the general fund base percentage can never increase and can never be less than twenty percent;

             (10)      "Allowable general fund balance," the fund base percentage multiplied by the district's general fund expenditures in the previous school fiscal year;

             (11)      "Imputed interest rate," the average prime rate for the preceding fiscal year minus 2.5 percentage points;

             (12)      "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; and any revenue in the general fund set aside for a noninsurable judgment. "

Moved by:    Heineman
Second by:    McCaulley
Action:    Failed by voice vote.

 MOTION:     DEFER HB 1154 TO THE 36TH LEGISLATIVE DAY

Moved by:    McCoy
Second by:    Garnos
Action:    Was not acted on.

 MOTION:     SUBSTITUTE MOTION DO PASS HB 1154

Moved by:    Bartling
Second by:    Elliott

Action:    Failed by voice vote.

 MOTION:     DEFER HB 1154 TO THE 36TH LEGISLATIVE DAY

Moved by:    McCoy
Second by:    Garnos
Action:    Prevailed by roll call vote.(11-4-0-0)

Voting Yes:    Begalka, Davis, Garnos, Heineman, Juhnke, McCaulley, McCoy, Monroe, Wick, Smidt, Eccarius

Voting No:    Bartling, Elliott, Kooistra, Van Norman

 MOTION:     ADJOURN

Moved by:    McCaulley
Second by:    McCoy
Action:    Prevailed by voice vote.

Diane Mellan

____________________________

Committee Secretary
Scott Eccarius, Chair

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