Three bills with important implications for K-12 education are headed to Gov. Dennis Daugaard’s desk for final approval after Representatives and Senators voted to pass conference committee recommendations.

Senate Bill 28: The amended version of the bill adjusting general fund property tax levies for school districts passed the House and Senate by 62-5 and 29-5 votes, respectively.

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.

Senate Bill 15: The increase to the special education levy for school districts passed the House by a 63-3 vote and the Senate at 25-9.

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. These points were included in the original proposal of SB 15.

The bills acted as a vehicle for school districts to receive the proposed three percent increase in state aid. Representatives of Gov. Daugaard’s administration warned in prior committee hearing testimony if either levy bill failed to pass the state aid increase would be in jeopardy.

Senate Bill 235: The omnibus economic development moved through the House and Senate with little resistance. Representatives voted 60-6 and Senators 31-2.

“We as a legislation managed to come together and work together to find a bipartisan compromise,” Sen. Corey Brown (23) said.

SB 235 would create the Building South Dakota fund, which would in turn establish the Workforce Education fund.

Thirty percent of the dollars collected – from fund projects tax revenue and from unclaimed property revenue from banks – for the Building South Dakota fund would be appropriated to the Workforce Education 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.

A conference committee met to fine tune the bill and attached amendments that included a $7 million one-time funding start up for the Building South Dakota, would not allocate dollars for the fund if the state did not provide the annual increase to K-12 education or Medicaid and added a provision that the state aid increase for ELL students for fiscal years 2014, 2015 and 2016 before transferring the increase to the general fund.

ASBSD Executive Director Wade Pogany was encouraged by the progress made in the legislation for K-12 education today.

“I think this definitely signifies a change in the mentality of the legislature on how schools are funded,” Pogany said. “These bills are a big step in the right direction for K-12 education funding.”

For updates on these bills, check the ASBSD blog and bill tracker.

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A lengthy debate on the House floor didn’t halt the progress of an omnibus economic development bill, which would provide funding for certain K-12 education programs.

Representatives passed Senate Bill 235, which would create the Building South Dakota fund, on a 56-13 vote. The bill received the 2/3 support it required.

Thirty percent of the dollars collected – from fund projects tax revenue and from unclaimed property revenue from banks – for the Building South Dakota fund would be appropriated to the Workforce Education fund to 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.

“(Economic development) should start with education,” Rep. Bernie Hunhoff (18) said. “The biggest share of the Building South Dakota fund will go to K-12 education.”

Rep. Stace Nelson (19) called the bill a “hodge podge” because of its wide range of funding areas, which he argued was against the state’s constitutional provisions to address just one area. Rep. Nelson presented an amendment to remove many sections of the bill because they could act as separate legislation, but it was defeated on a voice vote.

Rep. David Lust (34) said the bill is for the betterment of South Dakota and its voters.

“(Voters) send us here to do things that are best for South Dakota,” Rep. Lust said. “That’s really what Senate Bill 235 does.”

ASBSD supports the bill. For updates on the bill, check the ASBSD blog and bill tracker.

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The bipartisan bill aimed at enhancing economic development in South Dakota had its first hearing on Monday in front of the House State Affairs committee.

Senate Bill 235 would create the Building South Dakota fund, which would in turn establish the Workforce Education fund.

Thirty percent of the dollars in the Building S.D. fund would be appropriated to the Workforce Education fund to 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.

“It’s time for K-12 education to be involved in the economic development conversation,” Executive Director Wade Pogany testified. Pogany added that the education community hasn’t been as involved in economic development as it should have been and noted “a solid K-12 education” solidifies the concept.

Sen. Corey Brown (23), a sponsor and developer of the bill, said SB 235 “creates a framework for economic development” in South Dakota and added “education is tied to economic development.”

An amendment is likely to be introduced for the education portion of the bill, said Sen. Brown. The amendment could put a sunset date on the ESL funding provision to transfer from the Workforce Education fund to the state’s general fund, but a timeline was not specified.

Sen. Brown noted the bill would provide “repetitive one-time dollars” for school districts, which he said would serve an ongoing purpose.

“There really is no shortage of needs or areas our K-12 schools could spend dollars in,” Sen. Brown said.

Committee members voted 12-0 to pass the bill on to the House. SB 235 will be debated on the House floor this afternoon.

For updates on the bill, check the ASBSD blog and bill tracker.

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House Taxation committee members passed a bill that would create a property tax levy for leased residential property at Tuesday’s meeting on a 9-4 vote.

House Bill 1143 sets the leased property levy would be set at $8.62 per $1,000 of taxable valuation and is defined as any single-family unit or structure consisting of two or more family units that is leased or rented.

Proponents of the bill argued leased property is unfairly taxed, noting it’s taxed the same as retail chains such as Wal-Mart, and renters feel the effects of being in that tax bracket.

Department of Revenue representative Mike Houdyshell said the addition of leased property as a tax levy presented short-term and long-term concerns. Houdyshell noted short-term concerns included an increased workload for counties. He said the long-term concerns were even more troubling.

“There’s going to be a tax shift,” said Houdyshell, alluding to the possibility of the current levies – agricultural, non-agricultural (commercial) and owner-occupied single-family dwellings – being increased. 

Dean Krogman, of the S.D. Multi Housing Association, said the new category would not change revenue for school districts, but also testified a cost shift among the other tax levies would not take place “if growth” in leased property occurred.

A point Houdyshell contended was very uncertain.

“We don’t know what that tax impact would be, but we know it would be significant,” Houdyshell said.

The bill now moves to the House floor where it will be heard on Wednesday. For updates on the bill, check the ASBSD blog and bill tracker.

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South Dakota Governor Dennis Daugaard offered up his 2013 State of the State Address this afternoon with little mention of K-12 education; a change from a year ago when the Governor introduced the omnibus education reform plan, House Bill 1234, during that address.  

“K-12 education flew under the radar during the Governor’s State of the State Address and that’s OK with us,” ASBSD Executive Director Wade Pogany said.

“We’ll move forward firmly focused on securing one-time monies and having a more in-depth discussion on finding a long-term funding source for our school districts.”

Daugaard spent the majority of this year’s address unveiling his criminal justice initiative, as well as revisiting the unsteady federal financial situation, which he discussed during December’s budget address, and trumpeting the fiscal status of South Dakota.

“Governor Daugaard alluded to ‘reinforcing the floor’ for South Dakota and a great way to ‘reinforce it’ would be to invest in a sound K-12 education system with a long term funding plan,” Pogany said. “The conversation for establishing that long-term plan needs to start during the 2013 session.”

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Today marks the beginning of the 88^th South Dakota Legislative Session. The 38-day session kicks off at noon with legislators taking their oaths of office.

The first day will be highlighted by Gov. Dennis Daugaard’s State of the State address, which is scheduled to begin at 1 p.m. Coverage of the State of the State address will be available on SDPB1 (channels vary based on cable provider), on SDPB radio and at www.sdpb.org, as well as www.argusleader.com.  Audio access can also be found at the LRC website.

New initiatives for K-12 education aren’t expected during this year’s address.

Gov. Daugaard said in an article published yesterday by the Argus Leader that policy reform would not be a priority for the administration this year; instead focusing on the state’s budget. Even with Congress averting the fiscal cliff last week, Gov. Daugaard and some legislators have expressed concern about the future of federal funding for the state.

ASBSD will have a recap and reaction to the address posted here this afternoon.