Gov. signs two bills
Posted Tuesday, March 19, 2013
Governor signs cap. outlay extension
Last week, Gov. Dennis Dauggaard signed Senate Bill 194, which extends the provision allowing school districts to use capital outlay funds for certain insurance, energy, utilities and motor fuel costs to 2018, into law.
The provision, which was introduced in 2009, was set to expire in 2014.
The number of school districts utilizing capital outlay flexibility increased each year since 2009, which in turn caused the total dollar amount to grow as well.
The total dollars used as part of the flexibility provision nearly doubled from FY10 to FY11 and again in FY11 to FY12, which could be attributed the freeze in state aid in FY11 and the 8.6 percent cut to it in FY12.
ASBSD supported the bill.
Treatment center funding bill signed
Gov. Daugaard also signed Senate Bill 158, which would provide state funding for students in treatment centers and clarifies the discrepancy among the home district and the district in which the treatment center is located.
About 30 students per-year fall in this category and the total cost is approximately $139,000, said Rep. Peggy Gibson (22) in support of the bill on the House floor. The governor included funding for similar situations in his budget proposal.
ASBSD supported the bill.
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2013 LEGISLATIVE SUMMARY
Posted Friday, March 8, 2013
A summary of the key bills related to K-12 education, which passed through the legislature, is listed below.
ASBSD will also host three webinar sessions recapping legislative session on Tuesday, March 19, Wednesday, March 20 and Thursday, March 21 at 7 p.m. An email with additional information will be sent next week to board presidents of each member school.
SB 235 – BUILDING SOUTH DAKOTA FUND
Establishes the Workforce Education fund, which receives thirty percent of the dollars collected for the Building South Dakota fund. The dollars would provide a 25 percent increase in state aid for ESL students, funding for CTE programs and potential dollars for education programs preparing students for the workforce.
Awaiting Gov. Daugaard’s signature. ASBSD supported the bill.
SB 158 – TREATMENT CENTER FUNDING
Provides state funding for students placed in a treatment center in a district other than their home district. The bill also clarifies the discrepancy that funding for the student in the treatment center is provided by the home district.
Awaiting Gov. Daugaard’s signature. ASBSD supported the bill.
SB 194 – CAPITAL OUTLAY FUNDS
Extends the sunset date for districts to cover certain expenditures with Capital Outlay dollars until 2018.
Awaiting Gov. Daugaard’s signature. ASBSD supported the bill.
HB 1137 – ENHANCES EDUCATION
Appropriates $5.8 million, which equals $45 per student, in one-time funding for schools for FY13.
Awaiting Gov. Daugaard’s signature. ASBSD supported the bill.
SB 15 – SPECIAL EDUCATION
Adjusts the tax levy and revises provisions of state aid for special education. The maximum level for the special education levy was raised to $1.552 per thousand dollars of valuation and a state aid qualifying level of $1.352. The bill sets the local effort to state aid ratio at approximately 61-39.
The extraordinary cost fund is set at $4 million. Allows school districts to use up to 15 percent of their special education fund dollars to identify K-12 students who need additional academic and behavioral interventions.
Awaiting Gov. Daugaard’s signature. ASBSD monitored the bill.
SB 28 – PROPERTY TAX LEVIES
Provides the annual tax levy adjustment for school district’s general fund. The commercial levy was moved to $9.20 per thousand dollars of valuation– an increase of $0.572 from last year. The agricultural levy was set at $2.09 – a decrease of $0.23 from last year. The levy for owner occupied property was changed to $4.296 – an increase of $0.267 from last year.
Awaiting Gov. Daugaard’s signature. ASBSD monitored the bill.
HB 1165 – PROPERTY TAX LEVIES
Establishes a task force to review ag land's contribution to the local effort ratio of property tax levies for schools.
Awaiting Gov. Daugaard’s signature. ASBSD monitored the bill.
SB 96 – JOINT POWERS AGREEMENTS
Allows school districts with enrollments under 100 to remain open if they are exercising joint powers or intergovernmental cooperation in education. Districts could share teachers, courses or curriculums among other services while students remain in their home district.
Awaiting Gov. Daugaard’s signature. ASBSD supported the bill.
HB 1164 – INNOVATION GRANT
Appropriates $500,000 in one-time funding for an innovation grant program for teachers, school districts or ESAs to utilize technology in creative and innovative ways to enhance learning and achievement of their students.
Awaiting Gov. Daugaard’s signature. ASBSD monitored the bill.
SB 233 – CRITICAL TEACHING NEEDS SCHOLARSHIP
Appropriates $1.5 million dollars for the establishment of the Critical Teaching Needs Scholarship program. The scholarship would subsequently be funded from the critical teaching needs trust fund after the initial appropriation. A variety of criteria would be used to award scholarship dollars to students enrolled in critical need teaching areas to encourage them to stay in South Dakota.
Awaiting Gov. Daugaard’s signature. ASBSD monitored the bill.
HB 1087 – “SENTINEL” PROGRAM
Allows school boards to implement Sentinel program, which arms individuals, other than law enforcement agents, with guns in and on school property. Individuals taking the Sentinel role have to complete 40-hours of firearms training. Approval of a local law enforcement agency before implementation of a program is required. A board’s decision can be referred to a vote by constituents.
Signed by Gov. Daugaard. ASBSD opposed the bill.
Categories:2013 Legislative Session, State Aid, School Funding, Capital Outlay, School Safety, Taxation, SPED, Small Schools, Comments (0) | Link to this story | Send to a friend | Print Story
Cap. Outlay extension approved
Posted Tuesday, March 5, 2013
Members of the House of Representatives voted 52-17 to pass Senate Bill 194, which extends the provision allowing school districts to use capital outlay funds for certain insurance, energy, utilities and motor fuel costs to 2018.
“This is clearly an essential bridge as we work through these troubling economic times,” Rep. Scott Ecklund (25) said in favor of the bill during its floor debate.
“Our schools took a major hit two years ago. They’re reeling.”
The provision, which was introduced in 2009, was set to expire in 2014. Each year since the capital outlay flexibility had been in place the total dollar amount has increased. In fiscal year 2009 school districts flexed a little more than $1 million with steady increases in FY 2010 and 2011 and topping out at over $15 million in FY 2012.
Rep. Dan Dryden (34) argued schools were becoming “more and more reliant” on using capital outlay dollars for costs other than they were intended for and introduced an amendment to scale back the sunset date to 2016. The amendment was defeated 23-46.
“For right now, we don’t have a different solution,” Rep. Jacqueline Sly (33) said.
SB 194 now heads to Gov. Dennis Daugaard for signature or veto.
For updates on the bill, and others, check the ASBSD blog and bill tracker.
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ASBSD Weekly Legislative Roundup
Posted Friday, February 22, 2013
Guns in Schools bill headed to Senate
A bill that would allow school employees and volunteers to carry guns in and on school grounds was passed by the Senate State Affairs committee today on a 5-4 vote.
House Bill 1087 would allow school boards to establish a sentinel program pending the approval of a local law enforcement agency. Non-law enforcement agents filling the sentinel role would be required to complete 40-hours of firearms training.
ASBSD opposes the bill based on the association’s Standing Position on Safe and Secure Schools opposes “weapons” on school grounds. Sen. Scott Craig (33) said he received an email claiming that communication among board members discussing ASBSD’s position on the bill showed they supported HB 1087 “10-to-1.” ASBSD did not receive emails supporting the bill at the same proportion.
Committee members passed an amendment that removed a provision that required school boards to discuss and approve the program in executive session.
An amendment that did not gather enough committee support called for the formation of a task force to study a comprehensive plan for school safety. ASBSD supported the amendment.
“Don’t out school boards deserve to see more than one option?” Executive Director Wade Pogany asked committee members. “All I ask is that you would consider another option.”
Sen. Mark Johnston (12) supported the amendment, saying that HB 1087 “jumps to the automatic conclusion that arming is the answer.”
The bill now heads to the Senate floor, which is the final step before it reaches the Governor. For updates on it, check the ASBSD blog and bill tracker.
Sunset extension one step closer
Members of the House Education committee voted 12-3 to pass Senate Bill 194, which extends the provision allowing school districts to use capital outlay funds for certain insurance, energy, utilities and motor fuel costs to 2018. ASBSD supports the bill.
“A lot of schools are having to do this,” Pogany testified. “We ask you continue the flexibility for schools in this financial time that we have.”
The provision, which was introduced in 2009, was set to expire in 2014. Each year since the capital outlay flexibility had been in place the total dollar amount has increased. In fiscal year 2009 school districts flexed a little more than $1 million with steady increases in FY 2010 and 2011 and topping out at over $15 million in FY 2012.
The bill now moves to the House floor. For updates on how it fairs, check the ASBSD blog and bill tracker.
“Quotes” of Note
“We’re being really irresponsible here just in our failure to fund schools adequately.” Rep. Ray Ring (17) said during a House Education committee hearing SB 194.
“We don’t know what that tax impact would be, but we know it would be significant,” Department of Revenue representative Mike Houdyshell said about the proposed addition of a leased property tax levy.
“(Schools are) still about the safest place our children can be.” Sen. Craig Tieszen (34) said during the Senate State Affairs hearing on HB 1087.
“Schools are addressing security the best that they can.” Sen. Larry Lucas (26) said during the Senate State Affairs hearing on HB 1087.
“We need to come together and get some long-term fixes for our schools.” Rep. Scott Ecklund (25) said during a House Education committee hearing SB 194.
Past Week’s Posts
Crossover Day comes and bills go - House
Crossover Day comes and bills go - Senate
State aid adjustment bills tabled
Leased Property levy looms in House
Categories:2013 Legislative Session, School Safety, Capital Outlay, State Aid, School Funding, Taxation, Comments (0) | Link to this story | Send to a friend | Print Story
ASBSD Weekly Legislative Roundup
Posted Friday, February 15, 2013
This week provided two lengthy days of school funding talk in the Senate Appropriations committee meetings.
At the center of the discussion were proposed adjustments to the state aid funding formula, which Executive Director Wade Pogany summed up as three different solutions to one problem.
“We have a crisis in education,” Pogany testified in Senate Appropriations. “We need help.”
The crisis of course being the massive 8.6 percent funding cut to the per-student allocation for the 2011-12 school year that came a year after the PSA dollar amount was frozen. All told, schools were left in a $52 million hole and even after a 2.3 percent increase to the PSA this year, the PSA remains over $300 behind the level it was in 2009.
“All we’re asking, as school board members, is a solid conversation about where funding could go,” Pogany told committee members. “That’s all we’re asking.”
Three bills may have kick started the conversation Pogany was referring to.
Senate Bill 191: Provides the proposed three percent increase to state aid. The bill would increase the per-student allocation to approximately $4,626 for the 2013-14 school year.
“Any amount we put back into the formula will work us closer back to (pre-cut) point,” Sen. Larry Rhoden (29), the bill’s sponsor, said.
In addition, SB 191 would shift the current state-to-local effort ratio from 53.7 percent to 56.4 percent to relieve property tax payers.
“As we increase funding now, I think we should work towards restoring the former percentage of the burden the state paid,” Rhoden said.
Senate Bill 193: Changes the language of the state aid increase from "less" to "more" as it relates to schools receiving an annual percentage increase or the change in CPI-W. The bill does not set a cap on the percentage increase for state aid.
“Try something bold and dynamic and invest in our future generation,” Sen. Mark Kirkeby (35), the bill’s sponsor, urged committee members.
Kirkeby noted the bill would provide districts with the assurance that a three percent increase was going to come and would allow school boards to “sit down and plan, prepare and balance (their) budget for adequate funding.”
Senate Bill 196: Modifies the state aid increase to general and special education by adjusting increase to be based on the projected state general fund increase or CPI-W change, whichever is greater. The increase would be capped at six percent.
“There’s nothing guaranteed in state aid formula,” Sen. Larry Lucas (26), the bill’s sponsor, said. “(SB 196) takes the philosophy that in bad and good years in South Dakota, schools would share in those.”
Lucas noted that in addition to the stable funding the bill could provide for schools it could also be used to help narrow the gap in teacher salaries, which South Dakota currently ranks last in the nation in.
The administration opposed each bill; citing reasons that included, the state would be forced to fund anything over a three percent increase, enrollment growth increasing the state’s share, schools fared better in terms of funding percentage cut than other state agencies, having to make cuts to other programs and a lack of funding to support changes to the formula.
“There’s no money to cover it in the budget,” State Economist Jim Terwilliger said. Terwilliger noted Gov. Dennis Daugaard’s proposed budget for the 2014 fiscal year had a $1 million structural surplus and any ongoing increase would create a structural deficit in the budget.
Pogany said school boards are in limbo when it comes to planning for the future because the future of funding is unknown, which leaves their message for legislators unchanged.
“They (school boards) have tried to put in their savings account as much as they can just for the future,” Pogany said. “They’re trying to plan for the future and be as stable as they can. They don’t know from year-to-year where it’s (funding) going to go.”
“The message is the same, ‘we need help.’”
These bills, and others, will be acted upon at Tuesday's (Feb. 19) Senate Appropriations committee meeting. For updates, check the ASBSD blog and bill tracker.
“Quotes” of Note
“The bill offers school districts that may need it, some relief on certain expenditures. Right now, with funding where it is for schools any flexibility helps.” – Executive Director Wade Pogany said about Senate Bill 194.
“We see capital outlay flexibility as really the only realistic option to maintain even basic education services.” Milbank Superintendent Tim Graf said in support of SB 194.
“The intent of this is to give local school boards maximum flexibility.” – Sen. Mark Johnston (12) said of Senate Bill 96.
“This matter’s been studied and studied and studied and we’re going to sit here in 30 minutes and decide.” – Rep. Timothy Johns (31) said about Common Core Standards.
“We very seldom play by our own rules. Right now, it’s (funding) beyond a crapshoot.” – Sen. Mark Kirkeby said during his testimony on SB 193.
Past Week Posts
“Under 100” option through House
News and notes from Wednesday
Tax Credit Tabled
Categories:2013 Legislative Session, State Aid, Capital Outlay, Common Core, School Funding, Small Schools, Taxation, Comments (0) | Link to this story | Send to a friend | Print Story
News and notes from Wednesday
Posted Thursday, February 14, 2013
Senate votes to extend sunset
A bill to extend the sunset date on capital outlay flexibility passed through the Senate on a 29-6 vote.
Senate Bill 194 would extend the provision allowing school districts to use capital outlay funds for certain insurance, energy, utilities and motor fuel costs to 2018. The provision, which was introduced in 2009, was set to expire in 2014. ASBSD supports the bill.
Bill sponsor Sen. Bill Van Gerpen (19) pointed to the growing number of schools utilizing the flexibility from 29 in fiscal year 2009 to 102 in 2012.
“That says to me we have a real crisis in our schools,” Van Gerpen told fellow Senators. “At our current rate, two-thirds of our schools need this to pass.”
Sen. Larry Rhoden (29) noted that a one-third of schools didn’t have capital outlay and were “in a lurch” when it came to funding flexibility.
“We are not providing equal opportunity for all of our students,” Rhoden said.
Van Gerpen noted that massive cuts made by the legislature to school funding “led to this crisis” and urged Senators to pass the bill. With its passage, SB 194 now heads to the House.
No change to small school adjustment
Senate State Affairs committee members voted 7-2 to defer Senate Bill 197 to the 41st day.
SB 197 would have provided the small school adjustment to a district for an open-enrolled student, if that student’s home district received the adjustment and would not have provided the adjustment to a small school district if an open enrollee came from a district that did not receive the adjustment.
Gov. signs flexible spending accounts bill
Gov. Dennis Daugaard signed House Bill 1064, which allows school districts to implement flexible spending accounts as part of health insurance plans, into law on Tuesday. HB 1064 is the first bill that ASBSD has been tracking and updating to be signed into law.
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Extension and Innovation
Posted Tuesday, February 12, 2013
Capital Outlay sunset date extended
Senate Education committee members stretched the provision allowing school districts to use capital outlay funds for certain insurance, energy, utilities and motor fuel costs at Tuesday’s meeting.
The committee voted 7-0 to extend the sunset date to 2018 as part of Senate Bill 194. The provision, introduced in 2009, was set to expire in 2014. ASBSD delegates voted to support the extension of the sunset date at November’s Delegate Assembly.
“The bill offers school districts, that may need it, some relief on certain expenditures,” Executive Director Wade Pogany said. “Right now, with funding where it is for schools any flexibility helps.”
Bill sponsor Sen. Bill Van Gerpen (19) testified that school districts could see a more than 10 percent increase to health insurance costs and Milbank Superintendent Tim Graf told the committee his district saw the flexibility “as really the only realistic option to maintain even basic education services.”
During the committee’s discussion, Sen. Mark Johnston (12) noted each year since the capital outlay flexibility had been in place the total dollar amount has increased. In fiscal year 2009 school districts flexed a little more than $1 million with steady increases in FY 2010 and 2011 and topping out at over $15 million in FY 2012.
The bill now heads to the Senate floor.
Senate Bill 76 hoghoused
Rerouted from the Senate floor to the Senate Education committee, Senate Bill 76 underwent an overhaul on Tuesday.
The bill, which originally passed through Senate Education more than two weeks ago, was hoghoused by the committee and referred to the Senate Appropriations committee. SB 76 originally appropriated $150,000 in state funding for Education Service Agencies, which lost funding in 2009.
The new version of the bill creates an innovation grant program for ESAs and school districts. Sen. Johnston told committee members the updated SB 76 combined parts of the original version and House Bill 1133, which was deferred to the 41st legislative day by the House Education committee.
Johnston said the bill would “create business processes to ensure the long-term survivability of the (small) districts and most importantly improve student achievement.”
Johnston said he expected the hoghoused version to exceed the $150,000 attached to the previous version, but he did not specify an amount. Currently, there is one dollar attached to the bill.
The state Board of Education would select grant recipients from school districts and ESAs that apply for funds. Applicants must have matching funds to be eligible.
ASBSD will continue to monitor the bill, check the ASBSD blog and bill tracker for updates.
Categories:2013 Legislative Session, Capital Outlay, ESA, Education Funding, Student Achievement, Comments (0) | Link to this story | Send to a friend | Print Story
Capital outlay flexibility sails through the House
Posted Wednesday, March 2, 2011
The South Dakota House of Representatives offered a
resounding endorsement Tuesday for extending local flexibility to spend capital
outlay revenue, passing SB 111 on a 61-8 vote. The bill now heads to the
governor, who is expected to sign the measure.
With the passage of SB 111, schools will be able to use up
to 45 percent of their capital outlay revenue to pay for some insurance,
energy, fuel and transportation costs. The flexibility was extended two years
ago, but is set to expire June 30, 2012. If signed by the governor, it will
allow those expenditures through FY14.
Supporters asked lawmakers to give schools another tool to
make it through difficult financial times. The few who opposed the measure did
so in protest against shifting more of the burden for K-12 funding onto local
property tax payers.
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Daugaard sounds off on legislative proposals
Posted Friday, February 11, 2011
Gov. Dennis Daugaard gave his assessment Thursday of three legislative
proposals designed to offset cuts to K-12 schools and give schools more flexibility
with existing resources.
The governor endorsed granting schools
more flexibility in the use of capital outlay revenue – a move he said would
help schools cope with his proposed cuts. Gov. Daugaard said the capital outlay
levy is unique to schools, adding that city or county governments don’t have a
specific revenue stream to pay for buildings. He questioned whether it’s
appropriate for the state to restrict how those funds can be used.
The Senate has already passed SB 111, which temporarily
extends authority to use capital funds to pay for some insurance, energy and
transportation costs. On the House side, Representatives are considering HB
1203, a measure that would remove all restrictions on the use of capital outlay
money. If passed, schools would be able to make up revenue lost to state aid
cuts by transferring capital revenue to the general fund for operational
expenses.
The governor chose his words carefully when asked whether he’d
support measures designed to reduce proposed 10 percent cuts by allowing local
property taxes to remain stable. Sen. Larry Rhoden, R-Union Center, and Rep.
David Lust, R-Rapid City, have both introduced proposals that would effectively
reduce K-12 cuts to 5.6 percent by allowing property tax payers to pick up a
larger share of the responsibility to fund education.
Gov. Daugaard signaled he was open to the idea, but made it
clear that it’s not the direction he’d prefer. “I’m not opposing the bill, but
my preference is that it would be a district-by-district decision,” he said.
The governor was more direct when asked about a third education-related proposal that would
use funds from the Education Enhancement Trust Fund to keep the per-student
allocation level. The plan, filed as SB 126 and put forth by Sen. Mark Johnston,
R-Sioux Falls, requires schools to lend the state approximately $83 per student
for two years. Beginning in 2014, the state would repay school districts using money partially generated from interest earnings on the trust fund.
Citing concerns that the measure would harm the trust and
limit the fund’s annual contribution to the state’s general fund, Gov. Daugaard
promised to veto the measure if it made it through the legislative process.
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HB 1203: The granddaddy of all Capital Outlay flexibility
Posted Thursday, February 3, 2011
A proposed law will break down the barrier between school
district general and capital outlay funds.
House Bill 1203 allows schools to recapture revenue lost
from cuts to the per-student allocation by transferring surplus from the
capital outlay fund to the general fund. The legislation puts no restrictions
on how schools can use the money, and the flexibility lasts through fiscal year
2013. The measure only takes effect if the per-student allocation drops from
one year to the next.
Another measure that extends current capital outlay flexibility
through 2014 has already passed the Senate. House Bill 1203 is not yet
scheduled for a hearing.
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Capital outlay bills earn approval
Posted Thursday, January 27, 2011
Members of Senate Education gave the nod Thursday morning to two measures designed to give schools additional flexibility in how capital outlay dollars are spent.
Two years ago,
school boards were granted the authority to use some capital revenue for
certain transportation, insurance, energy and utility costs. The budgetary
authority is set to expire in 2012. The Senate Education committee passed both SB 111 and SB 92 this morning, sending two capital outlay flexibility alternatives to the Senate floor.
Senate Bill
111 will provide a two-year extension of the current flexibility, through
2014.
Senate Bill 92
goes a step further by broadening the budgetary flexibility to allow schools to
purchase employee health insurance with capital outlay revenue. The measure
also allows schools to use up to 60 percent of the district’s annual capital
outlay revenue, up from 45 percent under the previous language, for the purposes specified in the bill. The budgetary flexibility is extended through 2015 and allows schools to use the 2010 capital outlay levy as a base.
For more, stick with Open Forum.
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Extending, broadening capital outlay flexibility
Posted Monday, January 24, 2011
With schools facing tight budgets and the prospect of a $60
million cut, the issue of expanding the use of capital outlay revenue will
resurface again in the 2011 Legislative Session.
Lawmakers have already filed two pieces of legislation aimed
at extending the capital outlay flexibility schools already have. Two years ago,
school boards were granted the authority to use some capital revenue for
certain transportation, insurance, energy and utility costs. The budgetary
authority is set to expire in 2012.
Senate Bill
111 will provide a two-year extension of the current flexibility, through
2014. The bill’s prime sponsors are Senate Majority Leader Russ Olson,
R-Madison, and Rep. Kim Vanneman, R-Ideal.
Senate Bill 92
goes a step further by broadening the budgetary flexibility to allow schools to
purchase employee health insurance with capital outlay revenue. The measure
also allows schools to use up to 60 percent of the district’s annual capital
outlay revenue, up from 45 percent under the previous language, for the purposes specified in the bill. The flexibility
would last until 2015. The bill’s prime sponsor is Senate Education Chair
Cooper Garnos, R-Presho.
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