(SB 32)

**
State aid formula adjusted for sparse school districts.
**

ENTITLED, An Act to
revise certain provisions relating to the distribution of funds to sparse
school districts, and to declare an emergency.

*BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:*

Section
1.
That
§
13-13-78
be amended to read as follows:

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 an average daily membership per square mile of 0.50 or less;

(b)
Has an average daily membership 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;

(f)
Levies ad valorem taxes at the maximum rates allowed pursuant to § 10-12-42
or more; and

(g)
Has a general fund balance percentage of thirty percent or less excluding revenue
received from opting out of property tax limitations pursuant to chapter 10-12;

(2)
"Sparsity average daily membership
__
for sparse school districts with an adjusted average
daily membership as defined in subdivision 13-13-10.1(2) of less than one hundred or
greater than two hundred seventy-five
__
," calculated as follows:

(a)
~~
For sparse school districts with an adjusted average daily membership as defined
in subdivision 13-13-10.1(2) of less than one hundred or greater than two
hundred seventy-five, divide
~~
__
Divide
__
the average daily membership as defined in
subdivision 13-13-10.1(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 average daily membership;

(3)
"Sparsity adjusted average daily membership
__
for sparse school districts with an adjusted
average daily membership as defined in subdivision 13-13-10.1(2) of greater than or
equal to one hundred and less than two hundred seventy-five
__
," calculated as follows:
~~
For any sparse school district with an adjusted average daily membership as defined in
subdivision 13-13-10.1(2) of no less than one hundred, but no more than two hundred
~~

~~
seventy-five, the sparsity adjusted average daily membership is two hundred seventy-
five
~~
__
Subtract the school district adjusted average daily membership as defined in
subdivision 13-13-10.1(2) from two hundred seventy-five
__
.
** **

Section
2.
That
§
13-13-79
be amended to read as follows:

13-13-79.
At the same time that foundation program 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 distribute funds to sparse school districts by multiplying
~~
either the sparsity average daily
membership calculation or the sparsity adjusted average daily membership calculation in § 13-13-
78
~~
__
the result of the calculation in subdivision (2) or (3) of
§
13-13-78
__
by the per student allocation
as defined in § 13-13-10.1. However, no sparse school district may receive a sparsity benefit in any
year that exceeds two hundred fifty thousand dollars.
** **

Section
3.
Whereas, this Act is necessary for the support of the state government and its
existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full
force and effect from and after its passage and approval.

_______________