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
Off to see the Governor
Posted Friday, March 8, 2013
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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No reprieve for levy bill
Posted Friday, March 8, 2013
House Bill 1239’s transformation today wasn’t what Senators had in mind.
A conference committee was requested this morning in the House to review the bill, which underwent a change in the Senate to appropriate funds to the Board of Regents to cover the increase to employee health insurance costs.
Conference committee members elected to return the bill back to its original form – an act authorize school districts to set a tax levy at 30 cents per thousand dollars of taxable valuation for pension and health insurance funding purposes.
The Senate, however, voted to defeat the bill and not reassign a conference committee.
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Afternoon Update
Posted Thursday, March 7, 2013
Legislators have been locked in conference committee meetings and two different full floor sessions so far today, which has produced interesting developments.
Here’s a rundown of conference committee decisions:
Senate Bill 15: Conference committee members increased the special education levies to a maximum of $1.552 per thousand dollars of valuation and state aid qualifying level of $1.352. These points were included in the original proposal of SB 15.
Senate Bill 28: Committee members moved the commercial levy 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. The new levies are slightly higher than originally proposed in SB 28.
Conference committee reports were approved by the House and must receive final approval by the Senate before heading to Gov. Dennis Daugaard.
If each levy bill is approved, K-12 education would likely receive the three percent increase in state aid proposed in the governor’s budget. Administration representatives had warned in prior committee hearing testimony if the levies were changed the increase would be in jeopardy.
“This is a really good sign of the dedication legislators have towards improving funding for K-12 education,” Executive Director Wade Pogany said.
Senate Bill 235: Conference committee members completed their work from yesterday by agreeing on a $7 million one-time funding start up for the Building South Dakota fund established by the bill and an amendment requiring the state an annual increase for K-12 schools and Medicaid before any dollars are allocated to the fund.
Another amendment passed would supply the state aid increase for ELL students, as proposed in the bill, for fiscal years 2014, 2015 and 2016 before transferring the increase to the general fund.
Approval of the committee report and the bill by both houses still remains.
House Bill 1239: Committee members voted to remove the Senate’s amendment to appropriate funds to the Board of Regents to cover the increase to employee health insurance costs.
HB 1239 was reverted to the version that passed House, which would authorize school districts to set a tax levy at 30 cents per thousand dollars of taxable valuation for pension and health insurance funding purposes.
There remains an uphill battle for HB 1239 as it must be approved by Senators, who voted 28-5 to amend it on Tuesday.
For updates on these bills, check the ASBSD blog and bill tracker.
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On the fly
Posted Thursday, March 7, 2013
That three word title fits the final two days of legislative action as bills will be passed or killed and the final budget figures will be put together.
State aid
The current budget proposal includes a three percent increase for school districts. A three percent increase would set the per-student allocation for the 2013-14 school year at approximately $4,626.
Two levy bills – Senate Bills 15 and 28 – could have an effect on the proposed increase, however. Representatives of Gov. Dennis Daugaard’s administration have stated in committee hearings each bill must pass with the levies proposed or the state would have to pick up the shortfall, which could jeopardize the three percent increase for school districts.
Senate Bill 28 adjusts property tax levies for the general fund of a school district with the commercial levy at $9.163, up $0.535, decreases the agricultural levy by $0.24, to $2.082, and increases the owner-occupied levy by $0.25, up to $4.279.
Senate Bill 15 calls for an increase of $.05 for the SPED levy. In the current version, levies would be set at $1.25 per thousand dollars of taxable valuation for the qualifying level and $1.45 for the maximum level.
Members of the House of Representatives passed amended versions of both SB 15 and 28 on Tuesday with inflated land valuation figures, but did not change levy rates.
The Senate did not concur with the amendments and a conference committee made up of Senators Larry Rhoden (29), Deb Soholt (14) and Tom Jones (17) and Representatives Dean Wink (29), Dan Dryden (34) and Spencer Hawley (7) will meet today to discuss both bills.
ASBSD is monitoring the bills.
One-time dollars
Both houses agreed on House Bill 1137, which will appropriate one-time money to K-12 school districts.
HB 1137 appropriates $5.8 million, which equals $45 per student, for schools, $200,000 to the state’s technical institutes and $250,000 to the Teach for America program. A similar bill, Senate Bill 138, was tabled by the House on Tuesday.
Another bill calling for the allocation of one-time dollars is scheduled for a conference committee today. Senators Deb Peters (9), Larry Tidemann (7) and Billie Sutton (21) will confer with Representatives Dean Wink (29), Mark Mickelson (13) and Scott Parsley (8) to discuss Senate Bill 90.
SB 90 would appropriate one-time dollars similar to HB 1137 with $500,000 provided for innovation grants as well.
SB 90 is unlikely to remain as is, because HB 1137 and HB 1164, which appropriates $500,000 in one-time innovation grants to teachers, school districts and ESAs, has passed both legislative bodies.
For updates on these bills, check the ASBSD blog and bill tracker throughout the day.
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News and Notes from Tuesday night
Posted Wednesday, March 6, 2013
Levy bill hoghoused
Senators hoghoused House Bill 1239 on a 28-5 vote on Tuesday.
The original version of HB 1239 would have authorized school districts to set a tax levy at 30 cents per thousand dollars of taxable valuation for pension and health insurance funding purposes. ASBSD supported the bill.
The hoghoused version of the bill would appropriate funds to the Board of Regents to cover the increase to employee health insurance costs.
Dollar amount attached to innovation grant
House Bill 1164 was amended and passed by Senators on a 34-0 vote.
The amended version attached $500,000 in one-time money to HB 1164 for innovation grants to utilize technology in creative and innovative ways to enhance learning and achievement of their students. The amendment also opened the grant funds to Education Service Agencies along with teachers and school districts.
ASBSD is monitoring the bill.
ELL funding bill passed by Reps.
Senate Bill 159 was approved by the House of Representatives on a 60-9 vote.
SB 159 provides school districts with increased state aid for each Limited English Proficiency student scoring below a level four on the state-administered language proficiency assessment. The increase is currently set at ½ percent, but is expected to change as the budget process proceeds.
“We need to ensure that our newest citizens are being taught the English language,” Rep. Peggy Gibson (22) said.
SB 159 coincides with a provision in Senate Bill 235, which provides a 25% funding increase for ELL students under the same conditions. SB 235 is an omnibus economic development bill that would provide funding for certain education programs.
ASBSD supports both bills.
$1.5 million devoted to scholarship
Representatives amended Senate Bill 233 to include $1.5 million on a 51-18 vote.
SB 233 establishes a critical needs teaching scholarship and creates a trust fund program for student’s working towards a teaching degree in a critical needs curriculum area. Sen. Tim Rave (25) has requested $5 million in one-time dollars from the general fund to start the scholarship’s trust fund.
ASBSD is monitoring the bill.
For updates on these bills, check the ASBSD blog and bill tracker.
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Levy bills passed by Reps.
Posted Tuesday, March 5, 2013
House of Representatives passed amended versions of property tax levy bills for the general and special education funds back to the Senate.
Amendments to the bills inflated their land valuation, but left levy rates the same as passed by House Appropriations committee members.
Senate Bill 28 adjusts property tax levies for the general fund of a school district with the commercial levy at $9.163, up $0.535, decreases the agricultural levy by $0.24, to $2.082, and increases the owner-occupied levy by $0.25, up to $4.279.
Senate Bill 15 calls for an increase of $.05 for the SPED levy. In the current version, levies would be set at $1.25 per thousand dollars of taxable valuation for the qualifying level and $1.45 for the maximum level.
SB 15 also 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 and caps the Extraordinary Cost Fund at $5.5 million.
Administration representatives have noted in committee hearings that each bill is needed for school districts to receive the proposed three percent increase in state aid.
Each bill is expected to be referred to conference committee. ASBSD is monitoring the bills.
For updates on SB 15 and 28, check the ASBSD blog and bill tracker.
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Funding front and center in final week
Posted Tuesday, March 5, 2013
The final week of legislative session got underway on Monday without a major decision made.
Last week, State Economist Jim Terwilliger and LRC Chief Fiscal Analyst Fred Schoenfeld presented appropriators with an updated picture of state revenue and a decision was expected on which set of projections to adopt. Appropriators, however, postponed the decision until today.
Monday wasn’t without progress though, as House Appropriations committee members passed or deferred a variety of K-12 related funding bills.
One-time funding for K-12 introduced
House Appropriators took the first step in providing one-time dollars for school districts with amendments to two bills – Senate Bills 90 and 138.
Appropriators attached amendments to each bill for $5.8 million in one-time funds for K-12 schools and $200,000 for CTE programs. The one-time funding for K-12 education would result in $45 per student.
SB 90 would revise the General Appropriations Act for fiscal year 2013 and SB 138, which was previously a vehicle bill, calls for an appropriation to enhance education by revising the General Appropriations Act for fiscal year 2013.
“This is a really good sign for schools,” Executive Director Wade Pogany said of the proposed on-time appropriation. “ We’ll wait to see how things shake out with funding, but the proposal is encouraging.”
SPED levy amended
Committee members voted to amend the property tax levies for the special education fund set in Senate Bill 15.
Levies were initially proposed to be raised by $0.15, but appropriators changed the increased amount to $.05. In the current version, levies would be set at $1.25 per thousand dollars of taxable valuation for the qualifying level and $1.45 for the maximum level.
Rep. Dean Wink (29) said the amendment is “just to keep (the bill) in play.”
S.D. Chief Financial Officer Jason Dilges said if SB 15 did not pass the state would have to pick up the dollars lost or the proposed increase for the per-student allocation would be decreased.
SB 15 also 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 and caps the Extraordinary Cost Fund at $5.5 million.
ASBSD is monitoring the bill.
Levy bill advanced
The vehicle bill for schools to receive the proposed three percent increase was passed on by appropriators.
Senate Bill 28 adjusts property tax levies for the general fund of a school district with the commercial levy at $9.163, up $0.535, decreases the agricultural levy by $0.24, to $2.082, and increases the owner-occupied levy by $0.25, up to $4.279.
“(SB 28) is needed to provide the three percent increase,”Terwilliger testified.
ASBSD is monitoring the bill.
For updates on funding legislation, check the ASBSD blog and bill tracker.
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Property and petitions
Posted Wednesday, February 27, 2013
Proposed levy moved to 41st
House Bill 1143, which would have classified leased residential property as the fourth tax levy, fell one vote short at its Senate Taxation committee hearing this morning.
Committee members voted 4-3 to move HB 1143 to the 41st legislative day following a lengthy discussion on proposed creation of the new tax levy.
“It’s something I think we could look at without this legislation,” Department of Revenue representative Mike Houdyshell testified. Houdyshell testified in opposition of the bill noting the bill had the potential to create a cost shift to the other levies (Agricultural, Owner-occupied and Commercial) or would have required the state to increase its share of funding for state aid.
HB 1143 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. Leased property stands under the commercial levy umbrella.
“We’re more residential than we are business,” Dean Krogman of the S.D. Multi Housing Association said. Krogman said he envisioned the levy would fall somewhere between the commercial ($8.62) and owner occupied ($4.02) in future dollar amount.
DOE Director of Finance Tammy Darnall said the department opposed the bill because it added a tax classification that did not provide a growth measurement for the state or districts to refer to when projecting tax revenues for their budgets.
Darnall also noted HB 1143 conflicted with Senate Bill 28, which is the tax levy bill needed for the local effort proportion to meet the state’s effort for the proposed three percent increase in state aid funding.
Petition bill passed
Senate Local Government committee members voted unanimously to pass House Bill 1018, which would require independent notarization on an election candidate’s nominating petition.
HB 1018 now heads to the Senate floor and if passed without an amendment, would move on to the Governor for signature.
ASBSD is monitoring the bill.
For updates on this bill, as well as others, check the ASBSD blog and bill tracker.
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Appropriations defers actions
Posted Monday, February 25, 2013
Two bills that could impact K-12 education funding had hearings in House Appropriations this morning, but no action was taken.
House Appropriators held a lengthy discussion among themselves and those who testified on Senate Bill 28, which adjusts property tax levies for the general fund of a school district. The discussion centered on the bill’s purpose, changes to the levies and future funding discussions.
SB 28 is the main vehicle for providing school districts with the proposed three percent increase to state aid. The bill would even out the state-to-local effort for funding education.
“If Senate Bill 28 failed…then the per-student allocation would have to be cut,” State Economist Jim Terwilliger testified.
The fate of the bill seems safe for passage, but changes to the levies to potentially make them more equal is up for discussion. SB 28 sets the commercial levy at $9.163, up $0.535, decreases the agricultural levy by $0.24, to $2.082, and increases the owner-occupied levy by $0.25, up to $4.279.
Sen. Stan Adelstein introduced an amendment calling for the owner-occupied, commercial and agriculture levies more equal in proportion, which failed on a voice vote, but stirred conversation among appropriators and testifiers.
“There may be some broader questions we ask about how we balance funding for education,” S.D. Chamber of Commerce and Industry President David Owen said.
ASBSD Executive Director broached the subject of a long term funding solution for schools in his testimony, noting the difficulty schools are having in preparing for the future.
“We need to have a long term discussion because school districts need to be able to plan for the future,” Pogany said. “(Schools) are still in a financial crisis. I’m hopeful the appropriators can look for a long term solution.”
CTE Funding
House appropriators also deferred a decision on a bill that would appropriate funds for CTE programs.
Senate Bill 229 currently has a $1 dollar attached to it, but the bill’s sponsor, Sen. Billie Sutton (21), would like to see $1.5 million provided for the programs. Funding from the bill would not be ongoing and Sen. Sutton said he envisions funds being distributed through a competitive grant process.
House Appropriators deferred a similar bill to the 41st legislative day a week ago. ASBSD is opposed to the bill because it would remove general fund dollars that school districts could use at their own discretion.
For updates on these bills, 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
Crossover Day comes and bills go - House
Posted Thursday, February 21, 2013
Members of the House and Senate discussed, debated and acted on a number of bills well into the evening hours on Wednesday, which marked Crossover Day. All bills still in their original house had to be passed or tabled by the end of the day.
A long list of legislation related to K-12 education littered the docket in both houses. Here’s a rundown of those bills from the House:
House Bill 1204: Requires Board of Education to seek legislative approval before implementing any additional Common Core Standards. The bill would not affect the math and reading standards, set for implementation in 2014, but would require any further standards be approved by the legislature.
“This bill in particular will strip away the authority of the State Board of Education,” Bill sponsor Rep. Jim Bolin (16) said. Bolin added the legislature should “reserve the power” to approve future standards.
Rep. Anne Hajek (14) expressed concern that the bill takes away the power of the State Board of Education to hold public hearings and gives power to the legislature “to make all the decisions.”
HB 1204 passed on a 36-32 vote. ASBSD is opposed to the bill.
House Bill 1143: Creates a property tax levy for leased residential property for the school district general fund and sets the levy at $8.62. Leased residential property is defined as any single-family unit or structure consisting of two or more family units that is leased or rented.
The economic impact of establishing the leased residential property levy is unknown at this time.
HB 1143 passed on a 55-13 vote. ASBSD is monitoring the bill.
House Bill 1137: Impacts education in South Dakota. HB 1137 acts a vehicle bill if additional funding would be available for school districts near the end of session, said Sen. Justin Cronin (23).
“Maybe we can get some one-time monies out there (for education),” Cronin, the bill’s sponsor, said.
HB 1137 passed on a 61-8 vote. ASBSD is monitoring the bill.
House Bill 1165: Revises certain property tax levies for the general fund of school districts. The bill sets the non-ag levy at $8.62 per thousand dollars of taxable valuation, the agriculture levy at $2.32 and the owner-occupied levy at $4.02.
The bill would only drop the tenth of cents from the levies.
HB 1165 passed on a 67-2 vote. ASBSD is monitoring the bill.
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Crossover Day comes and bills go - Senate
Posted Thursday, February 21, 2013
Members of the House and Senate discussed, debated and acted on a number of bills well into the evening hours on Wednesday, which marked Crossover Day. All bills still in their original house had to be passed or tabled by the end of the day.
A long list of legislation related to K-12 education littered the docket in both houses. Here’s a rundown of those bills from the Senate:
Senate Bill 28: Adjusts property tax levies for the general fund of a school district.
Just one day after being amended by the Senate Appropriations committee to include the proposed special education levy increase, SB 28 saw another change on the Senate floor.
The recent change to the bill returns it to its original form and ONLY includes the property tax levy changes for the general fund. Sen. Mark Kirkeby (35) introduced the amendment, saying that each fund’s levy “should be standing on their own two feet.”
SB 28’s adjustment to the property tax levies acts as the mechanism for the proposed three percent increase in state aid for schools and if not passed the increase would be jeopardized.
The amended version of the bill passed on a 29-4 vote. ASBSD is monitoring the bill.
Senate Bill 15: Adjusts property tax levies for the special education fund of a school district and allows the use of 15 percent of special education fund dollars for special services.
Like its counterpart SB 28, Senate Bill 15 received a facelift on the Senate floor. The bill was amended to include the proposed property tax levy increases for the special education fund added.
The tax levy for special education would be raised by $0.15, with the maximum level set at $1.552 per thousand dollars of taxable valuation and the state aid qualifying level at $1.352. The levies are being raised to account for an increase in SPED students and set a state-to-local effort ratio at approximately 39-61 percent.
Sen. Deb Peters (9), the Senate Appropriations committee chair, said if SB 15 did not pass “the state will have to kick in the entire” amount of shortfall for special education.
In addition to the levy increase, SB 15 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 and caps the Extraordinary Cost Fund at $5.5 million.
The bill passed on a 24-9 vote. ASBSD is monitoring the bill.
Senate Bill 233: Establishes the critical needs teaching scholarship program for student’s looking to enter the teaching profession in a critical needs curriculum area and stay in South Dakota after completing their degree. There is $1 attached to the bill.
Sen. Chuck Welke (2) said the bill would have a “band aid effect” and would not make strides in recruiting and keeping teachers in South Dakota. Sen. Welke proposed the dollars should be put towards increasing teacher salaries.
SB 233 originally had $5 million attached to it in order establish a trust fund for the program. Sen. Tim Rave (25), the bill’s sponsor, said the $5 million would provide 15 scholarships. Rave said the 15 scholarships provided were “not enough… but it’s a start.”
SB 233 passed on a 29-4 vote. ASBSD is monitoring the bill.
Senate Bill 159: Provides school districts with an increase in state aid for each Limited English Proficiency student enrolled in the district. Initially the bill provided a 25 percent increase in state aid, but an amendment was introduced and passed that lowered the increase to 1 percent.
Sen. Jim White (22), the bill’s sponsor, said the decrease was temporary until legislators have a better idea of available funding towards the end of session.
The bill passed on a 31-2 vote. ASBSD supports the bill.
Senate Bill 180: Requires the publication of the total dollar amount of local government employees’ benefits – this group includes public school employees. Bill sponsor Sen. Corey Brown (23) said the bill shows taxpayers “what the total cost” of local government employees is.
An amendment to SB 180 requires the information be published in a designated newspaper. In the bill’s previous version, local government entities could publish the list online.
SB 180 passed on a 28-5 vote. ASBSD is opposed to the bill.
Senate Bill 136: Appropriates funding for the state aid education formula. Currently, SB 136 is a vehicle bill for school funding and has no dollar amount attached.
“I think most members of this body would like to see us get a little bit more money for K-12 education,” Sen. Tim Rave (25) said during the bill’s hearing on the floor. Sen. Rave added the bill would be utilized when financial projections for the state were solidified.
SB 136 passed on a 33-0 vote. ASBSD is monitoring the bill.
Senate Bill 76: Appropriates funding for Education Service Agencies. There is $1 attached to the bill. ESAs would have to apply to the Department of Education to receive the funds.
SB 76 passed on a 29-4 vote. ASBSD is monitoring the bill.
Senate Bill 229: Appropriates one-time dollars from the general fund to school districts for Career and Technical Education programs. There is $1 attached to the bill.
SB 229 passed on a 33-0 vote. ASBSD is opposed to the bill.
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A Hoghouse in Appropriations
Posted Wednesday, February 20, 2013
Two bills received big changes at Tuesday’s Senate Appropriations committee hearing that will in turn have big effects on K-12 funding.
Committee members passed an amended version of Senate Bill 28 on a 6-2 vote. SB 28 revises the property tax levies for school districts’ general and special education funds.
The bill is a mash up of SB 28, which in its previous version only adjusted the general fund levy, and Senate Bill 15, which was initially the levy bill for special education.
SB 28 presents a predicament because it raises the tax levy for special education by $0.15 – the maximum level would be set at $1.552 per thousand dollars of taxable valuation and state aid qualifying level at $1.352 – and also provides the three percent increase for schools proposed by the governor.
State Economist Jim Terwilliger previously testified that if the special education levy is not increased the “state would be picking up a higher percentage” of special education funding, which jeopardizes the proposed three percent increase.
“It’s a difficult situation because if we oppose the tax increase to the special education levy we lose the three percent increase schools desperately need,” Executive Director Wade Pogany said.
General education levies would see a raise to the non-agricultural levy of $0.535, up to $9.163 per thousand dollars of valuation, a decrease of $0.24, down to $2.082 for the agricultural levy and an increase to the owner-occupied levy of $0.25, up to $4.279.
SB 28 would also set the special education state-to-local effort proportion at 39-61 percent, respectively, and caps the Extraordinary Cost Fund at $5.5 million. Districts can apply for ECF dollars with a fund balance at 10 percent, which is up from the five percent level previously allowed.
New look for 15
The hoghouse of SB 28 led to an overhaul of Senate Bill 15. The bill now 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 and prevent them being identified as having a learning disability.
School districts would apply for approval from the Department of Education to use the funds for intervention and would not be able to apply for ECF dollars for three years.
Each bill will be heard on the Senate floor this afternoon and must be passed to the House or deferred by the end of the day. For updates on the bills, check the ASBSD blog and bill tracker.
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The committees before the storm
Posted Wednesday, February 20, 2013
It’s not the impending snow storm, but the “Crossover Day” flurry that happens Wednesday afternoon on the House and Senate floors as legislators work to pass or defer all the bills on the docket before the end of the day.
Before that flurry, committees met to discuss a variety of bills already passed through their original side of the legislature.
House Education committee members passed a bill that would provide state funding for educational programs for children in treatment centers on a 14-1 vote.
SB 158 provides funding to a student’s home district as well as the district the treatment center is located in and has the support of Gov. Daugaard. In addition, the bill clarifies the discrepancy that funding for the student in the treatment center is provided by the home district.
ASBSD supports the bill.
House Bill 1239, which would authorize school districts to implement certain tax levies at 30 cents per thousand dollars of taxable valuation for pension and health insurance funding purposes, passed the Senate Taxation committee on a 5-1 vote.
School districts are currently able to assess a levy for the district’s pension fund. HB 1239 would provide school districts the flexibility to apply funds from the levy to health insurance costs as well.
ASBSD supports the bill.
The House State Affairs passed an amended version of Senate Bill 5 on a 11-2 vote.
SB 5 would establish a Council on Higher Education and adjust the funding mechanism for higher education based on work done by the summer committee on Post-Secondary Education-Purpose and Funding. The amended version calls for the appointment of a school board member and a superintendent to the council.
ASBSD will continue to monitor the bills’ progress. For updates, check the ASBSD blog and bill tracker.
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State aid adjustment bills tabled
Posted Wednesday, February 20, 2013
Changes to the state aid funding formula won’t come in the forms of Senate Bills 191, 193 or 196 as the Senate Appropriations committee tabled the bills at Tuesday’s hearing, but the conversation each received is an encouraging step.
“It’s disappointing the bills won’t move on, but the conversation will,” Executive Director Wade Pogany said. “We approached legislative session with the idea that the conversation on improving funding for schools in the long-term needed to begin and it did, and it was well received.”
Senate Bill 191 – tabled on a 6-2 vote – proposed three percent increase to state aid and a shift in the current state-to-local effort ratio from 53.7 percent to 56.4 percent on the state side.
Senate Bill 193 modified 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. It was tabled on a 5-2 vote.
Senate Bill 196, which would have adjusted the state aid increase to general and special education based on the projected state general fund increase or CPI-W change, whichever is greater, was tabled on a 5-2 vote.
ASBSD supported and testified in favor of each bill.
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Leased Property levy looms in House
Posted Wednesday, February 20, 2013
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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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
Tax Credit Tabled
Posted Tuesday, February 12, 2013
In an unexpectedly welcome way, a bill that would have essentially subsidized private or home schooled education went down in committee, by its proverbial “own hand” nonetheless.
House Bill 1173 sponsor Rep. Don Kopp (35) requested the House Taxation committee table the bill citing plans to reintroduce a different version of the proposed legislation next year.
HB 1173 would establish a property tax credit program for any property owner whose child, or children, are enrolled in nonpublic school or other education program. The tax credit would be used to cover tuition, school fees or education expenses for any child in kindergarten through 12th grade enrolled in private school or being home schooled.
The tax credit for all eligible students would be worth up to eighty percent of the current year’s per student allocation, which based on this year’s PSA would be worth $3,592.80.
Kopp said the tax credit was “only fair” for parents and companies funding private or home schooled education for students.
ASBSD opposed the bill.
“The bill presented some potentially detrimental funding consequences so we’re pleased with this morning’s result,” Executive Director Wade Pogany said.
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Funding at the forefront
Posted Tuesday, February 12, 2013
Senate Appropriations
Wednesday marks a big day in Senate Appropriations, both literally and figuratively. Committee members have 16 bills on the docket, including six bill hearings and two that could be acted on related to K-12 education funding.
Here’s a breakdown of the bills:
Senate Bill 28: The vehicle for an increase to property tax levies for a school district’s general fund. The bill calls for a raise to the non-agricultural levy of $0.535, up to $9.163 per thousand dollars of valuation, a decrease of $0.24, down to $2.082 for the agricultural levy and an increase to the owner-occupied levy of $0.25, up to $4.279. ASBSD is monitoring the bill.
Senate Bill 191: Provides the proposed three percent increase to state aid. The bill would increase the per-student allocation to $4,626.65 for the 2013-14 school year. ASBSD supports the bill.
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. ASBSD supports the bill.
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. ASBSD supports the bill.
Senate Bill 229: Appropriates $1.5 million in one-time dollars from the general fund to school districts for Career and Technical Education programs. ASBSD is opposed to the bill.
Senate Bill 233: Establishes the critical needs teaching scholarship program for student’s looking to enter the teaching profession in a critical needs curriculum area and stay in South Dakota after completing their degree. The program would receive $5 million from the general fund to start a trust fund for the program. ASBSD is monitoring the bill.
Votes could be cast on Senate Bill 15 and 188, as well. Each bill had hearings last week (Feb. 7).
SB 15 calls for the tax levy for special education be raised to $1.53 per thousand dollars of taxable valuation and would set the state’s qualifying levy at $1.33 per thousand dollars of taxable valuation and would set a $4 million cap on the extraordinary cost fund. ASBSD is monitoring the bill.
SB 188 would provide $500,000 in funding, taken from the general fund, for the Teach for America grant program. Proponents of the bill testified it would allow TFA to increase the number of teachers recruited and retained by the program to 100, up from 57, and expand beyond the Pine Ridge and Rosebud reservations to other areas. ASBSD is opposed to the bill.
House Appropriations
Two bills will appear before the House Appropriations committee tomorrow after being passed and referred to appropriations by the House Education committee last week.
House Bill 1166 would reward teachers in school districts with bonuses based on the percentage of graduates not taking remediation courses upon entering higher education. The bill calls for up to $1 million, taken from the general fund, for the rewards. The rewards are not ongoing.
HB 1172 calls for the appropriation of $1.5 million from the general fund in the form of one-time dollars for school districts to use on career and technical education courses.
Combined, the two bills would offer $2.5 million in one-time funds from the pool of $26.5 million in excess general funds not appropriated in Gov. Dennis Daugaard’s budget proposal.
ASBSD is opposed to both bills due to its removal of dollars from the general fund.
Categories:2013 Legislative Session, State Aid, Taxation, SPED, Education Funding, CPI-W, Comments (0) | Link to this story | Send to a friend | Print Story
Talking Tax Credit
Posted Tuesday, February 12, 2013
After an unscheduled day off yesterday, legislators get back to it this morning with a hearing for a controversial bill related to school funding on the agenda
House Bill 1173 would establish a property tax credit program for any property owner whose child, or children, are enrolled in nonpublic school or other education program, which essentially would subsidize private or home schooled education.
The bill is scheduled for hearing in front of the House Taxation committee this morning.
HB 1173 would provide the property owner with a tax credit for tuition and school fees for any child in kindergarten through 12th grade for eighty percent of the current year’s per student allocation. Payment would be remitted directly from the county.
ASBSD is opposed to the bill because of its potential repercussions to local tax payers and K-12 education funding. School districts could have to raise property taxes or seek an opt-out to make up for the potential hit.
“This bill would have detrimental, long term effects on school districts,” Executive Director Wade Pogany said. “Our tax payers are already taking on a lot of the funding responsibility for schools and they could be asked to do even more if this bill were to pass.”
“Schools are hurting financially as it is, they cannot afford to take another hit.”
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ASBSD Weekly Legislative Roundup
Posted Friday, February 8, 2013
The fifth week of legislative session was littered with a variety bills for K-12 education (check past week’s posts) with a hearing on a bill that would adjust special education funding concluding the week.
Senate Bill 15 calls for the adjustment of the tax levy for special education to be raised to $1.53 per thousand dollars of taxable valuation and would set the state’s qualifying levy at $1.33 per thousand dollars of taxable valuation.
SB 15 would aim at establishing a 61-39 local effort to state funding ratio for special education. Testimony by state representative suggested the ratio had fluctuated annually.
“One year the state might have picked up a little bit more, one year the locals might have picked up a little bit more,” Department of Education Director of Finance Tammy Darnall said.
State Economist Jim Terwilliger said if the levy is not increased the “state would be picking up a higher percentage” of special education funding. Terwilliger added that a bill should have been introduced annually addressing the special education levy.
“We have not been as diligent at adjusting this levy as we should have been,” Darnall said.
The bill would also set a $4 million cap on the extraordinary cost fund, which Darnall said had “seen significant increases” recently, with a review of every three years. An amendment introduced would allow school districts to apply for ECF dollars with a higher fund balance level than previously allowed.
ASBSD will continue to monitor the bill. For updates check the ASBSD blog and bill tracker.
For additional information on the legislative session, and on ASBSD, check out the February Bulletin, which has an in-depth review of the first 20 days of session.
“Quotes” of Note
“It is too soon. I hope we can put this issue to bed… and continue to lift up this great profession.” – Sen. Mark Johnston (12) said about a bill that would allow school districts to opt-out of continuing contracts.
“We need to find a way to fund (teachers) appropriately year-to-year.” Rep. Paula Hawks (9) said during discussion special project funding bill.
“Our preference would be to eliminate the ‘100 student’ rule completely.” Executive Director Wade Pogany testified during a hearing on a bill that decrease funding for schools with an enrollments under 100.
“Everyone, generally, thought (the scholarship) was a good idea.” Sen. Tim Rave (25) said about a bill that would establish the scholarship program for students entering critical needs teaching areas, which originated from House Bill 1234.
Past Week’s Posts
Senate Ed. acts on three bills
News and notes
Information to remain offline
Funding change for “Under 100” deferred
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News and Notes from Thursday
Posted Friday, February 8, 2013
Action on TFA bill deferred
Action on Senate Bill 188, which would provide $500,000 in funding, taken from the general fund, for the Teach for America grant program, was deferred at Thursday’s Senate Appropriations meeting.
The TFA grant program would recruit teachers to and place them in school districts with high numbers of students from low-income households, specifically in schools on reservations.
TFA Representative Jim Curran testified last year’s grant program provided $250,000 in state funds, which was matched in private contributions, as stipulated in last year’s legislation (2012 – SD 139).
Curran said the proposed $250,000 increase would allow TFA increase the number of teachers recruited and retained by the program to 100, up from 57, and expand beyond the Pine Ridge and Rosebud reservations to other areas.
ASBSD is opposed to the bill because it removes general fund dollars that could be appropriated to school districts to use at their own discretion.
The bill is scheduled to come before the committee again on Wednesday, Feb. 13.
Agenda bill through House
Representatives unanimously passed House Bill 1158 on Thursday.
HB 1158 would require proposed agendas to include the date, time and location of a meeting. The bill was introduced to correct the oversight of meeting agenda information.
Ag. levy bill sent to 41st
Senate Agriculture and Natural Resources committee members deferred SB 210 to the 41st Legislative Day on an 8-1 vote at Thursday’s meeting.
The bill would have called for assessment of agricultural property based on full market value only and repeals the practice of assessing agricultural property based on its agricultural income value.
For updates on these bills, as well as others, check the ASBSD blog and bill tracker.
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News and notes from Wednesday
Posted Thursday, February 7, 2013
Remediation bill reconsidered
In a surprise move that opened up this morning’s (Wednesday) House Education committee meeting, Rep. Scott Ecklund asked for reconsideration of an amended version of House Bill 1166 and members obliged.
At Monday’s (Feb. 4) committee meeting, members deferred HB 1166, which would reward teachers in school districts with bonuses based on the percentage of graduates not taking remediation courses upon entering higher education, to the 41st Legislative Day, but voted 11-4 to take up discussion again.
Ecklund, who said the bill was “initially flawed” in its first draft, introduced an amendment drawn up by the bill’s sponsor, Rep. Lee Qualm, which would make the bonuses for teachers equal in dollar amount for all school districts. The committee did not hear public testimony or discussion on the amendment.
The bill calls for up to $1 million in money be taken from the general fund for the rewards, which are not funded in an ongoing fashion. A concept committee member Rep. Paula Hawks said failed to meet the salary concerns for the state’s teachers.
“We need to find a way to fund (teachers) appropriately year-to-year,” Hawks said.
The committee voted 9-6 to pass the bill on to the House Appropriations committee.
CTE funding bill continues on
Committee members voted 9-6 to refer House Bill 1172 to the House Appropriations committee.
HB 1172 calls for the appropriation of $1.5 million from the general fund in the form of one-time dollars for school districts to use on career and technical education courses. Bill sponsor Rep. Herman Otten testified that he does not believe the one-time dollars are “adequate” for programs but he intends to seek ongoing funding for CTE classes.
“The schools have made the choice to take the funds away from these programs,” Otten said.
Rep. Julie Bartling said the one-time funding may not be the answer for the CTE programs.
“There may not be the funding available (in the future) to continue the programs,” Bartling said.
Insurance and pension levy bill amended
Members of the House of Representatives passed an amended version of House Bill 1239 on a 53-17 vote on Wednesday.
HB 1239 would authorize school districts to implement certain tax levies at 30 cents per thousand dollars of taxable valuation for pension and health insurance funding purposes.
For updates on these pieces of legislation, and others, check the ASBSD blog and bill tracker.
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Two bills tackled on Tuesday by Reps
Posted Wednesday, February 6, 2013
Onward for innovation
Members of the House of Representatives passed House Bill 1164 with a 60-9 vote on Tuesday.
The bill would provide one-time dollars in the form of classroom innovation grants to utilize technology in creative and innovative ways to enhance learning and achievement of their students. Bill sponsor Rep. David Lust (34) told representatives the grants would “further the education experience” of students.
“It incentivizes teachers and classrooms to use technology in innovative ways,” Lust said.
An amendment to the bill changed the year the grants would be appropriated from 2014 to 2015 to allow teachers more time to prepare ideas before applying to the Department of Education. There is no dollar amount appropriated for the program at this time.
Tax levy bill voted down…for now
House Bill 1239 did not fare as well as HB 1164, as representatives turned back the bill by close margin.
The bill, which authorizes school districts, if they so choose, to increase certain tax levies for pension and health insurance purposes, failed to pass on a 33-36 vote. HB 1239 would have allowed districts to levy a tax of 40 cents per thousand dollars of taxable valuation. Funds collected from the levy can only be used for pension and health insurance purposes.
A request for reconsideration was made for the bill and representatives could vote on it again today.
ASBSD will continue to monitor each bill’s progress, or lack thereof, with updates on the ASBSD blog and bill tracker.
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Week ends on high note for K-12
Posted Friday, February 1, 2013
Four bills with ties to K-12 education received passing votes on Thursday.
Senate Bill 96 passed on 25-9 vote through the Senate. The bill would allow school districts with an enrollment under 100 to remain open, if they are exercising joint powers or intergovernmental cooperation in education.
“The bill presents a really positive option for K-12 education,” Executive Director Wade Pogany said. “It allows smaller school districts to keep their doors open and all districts the chance to collaborate with each other and offer students options they may not have had before.”
Joint powers agreements allow any number of school districts in the agreement to share services and costs. Districts could share teachers, courses or curriculums among other services while students remain in their home district.
Senate Education committee members advanced two positive bills. Senate Bill 159, which provides school districts with a 25 percent bump in state aid for each Limited English Proficiency student, passed on a 7-0 vote.
“This bill is essential to our school districts with Limited English Proficiency students,” Pogany said. “This is a growing group in South Dakota schools and there's a necessary extra effort to get them up to speed and keep them on track with their fellow students.”
Along with SB 159, committee members unanimously passed House Bill 1064. The bill allows school districts to implement flexible spending accounts as part of health insurance plans. It now makes its way to the Senate floor and, if passed, on to the governor.
House Bill 1239, which authorizes school districts, if they so choose, to increase certain tax levies for pension and health insurance purposes, passed House Taxation in an 8-5 vote.
The bill allows districts to levy a tax of 40 cents per thousand dollars of taxable valuation. Funds collected from the levy can only be used for pension and health insurance purposes.
“Average healthcare premiums are going up for school districts and this gives districts the flexibility to help offset those costs if needed,” Pogany said.
ASBSD supports each bill. Continue to monitor the progress of these bills by checking the ASBSD blog and bill tracker.
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Three bills deferred to 41st
Posted Wednesday, January 30, 2013
Increased funding bill blocked
House Bill 1201, which called for an increase to the per-student allocation dollar amount for the next three years, was deferred to the 41st Legislative Day on 9-4 by the House State Affairs committee.
“The bill was in for a battle,” Pogany said. “Although it’s disappointing it was defeated, the committee acknowledged something needs to be done and the conversation to develop a stable, ongoing funding source for schools is far from over.”
The committee deferred action on another funding bill that would change the index factor increase for education funding from three percent to four percent. House Bill 1202’s hearing continues Monday.
Levy name change deferred
Senate Bill 99, which proposed changing the term "opt out" to "instructional support levy," was deferred to the 41st Legislative Day by the Senate Taxation committee on 4-3 vote. Pogany testified the bill was for the betterment of education because it explained the tax increases true purpose.
House Ed. moves hearing
The hearing for House Bill 1166, which would reward school districts based on the number of past year graduates not taking remediation courses in post-secondary schools, was deferred by the House Education committee. ASBSD opposes the bill because it removes dollars needed by school districts from the general fund.
Instead the committee held a hearing for House Bill 1176. The bill defines truancy as any child absent from school for more than three days without a valid excuse. The committee deferred the bill to the 41st Legislative Day on a 12-2 vote.
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K-12 gets committee focus tomorrow
Posted Tuesday, January 29, 2013
Wednesday’s committee schedule marks a big day for legislation related to K-12 education.
House State Affairs committee members will hear two bills that would improve upon the current K-12 education funding situation.
House Bill 1201 calls for an increase to the per-student allocation dollar amount for the next three years to balance the “funding shortfalls” school districts suffered starting in 2011.
For the 2013-14 school year, the PSA would be raised by nearly seven percent to $4,802 and to $4,978 and at $5,154 (increases of 3.5 percent) in subsequent years. The PSA would return to the current funding formula level, with districts receiving a three percent increase or the change in the CPI-W, whichever is less following the 2015-16 school year.
House Bill 1202 would change the index factor increase for education funding from three percent to four percent. Gov. Dennis Daugaard proposed a three percent increase for school districts in his budget, which set the PSA at $4,625. A four percent increase would move the projected PSA to $4,670.
ASBSD supports both bills.
In addition to supporting the funding bills, ASBSD will stand behind Senate Bill 99, which changes the term "opt out" to "instructional support levy." A hearing for SB 99 is scheduled in Senate Taxation tomorrow.
ASBSD will take opposition against Senate Bill 167. The bill would require executive or closed sessions be recorded and maintained for one year. The bill has the potential to undermine confidentiality and stymie dialogue among board members on key closed session topics.
SB 167 appears before the Senate Local Government committee tomorrow.
The House Education committee will hold a hearing for House Bill 1166 tomorrow, as well. The bill would reward school districts based on the number of past year graduates not taking remediation courses upon entering higher education with dollars form the general fund. ASBSD opposes the bill because it removes dollars from the general fund school districts are in need of.
For updates following the committee meetings tomorrow on these bills, check the ASBSD blog and bill tracker.
Categories:2013 Legislative Session, State Aid, School Funding, CPI-W, Taxation, Open Government, Education Funding, Comments (0) | Link to this story | Send to a friend | Print Story
A bill summary from the past week
Posted Monday, January 21, 2013
The spotlight was placed firmly on House Bill 1087, which would allow school boards to arm school employees, when it was introduced last week during legislative session.
HB 1087, which ASBSD opposes, will no doubt garner much of the attention this week, but in addition to it there were 11 more bills were introduced last week that ASBSD will be tracking. Here’s a recap of those bills:
Senate Bill 78: Revises provisions of medical requirements for bus drivers transporting passengers exempting them from the physical requirements unless required by their district. ASBSD is monitoring the bill.
Senate Bill 79: Transfers funds from the Game, Fish and Parks fund to the permanent school fund for each acre of school land shown as public hunting land in a GFP published hunting atlas, map or other publication. ASBSD is monitoring the bill.
Senate Bill 80: Repeals legislation requiring impact aid be accounted in the school's general fund and allows the impact aid be accounted for in a separate fund. ASBSD is monitoring the bill.
Senate Bill 91: Reduces contractor's excise tax over a three year period before its full repeal in2016. ASBSD is monitoring the bill and the affect it could have on funding for K-12 education.
Senate Bill 96: Allows school districts with fewer than 100 K-12 students to remain open and autonomous, if it is exercising joint powers or intergovernmental cooperation in education with another school district. ASBSD is in support of the bill.
Senate Bill 98: Revises immunization exemption requirements to encompass a student that has a “personal religious commitment” opposed to the immunization and planning to enter school or an early childhood education program. ASBSD will monitor the bill.
Senate Bill 99: Changes the term "opt out" to "instructional support levy” when school districts publish announcement of reference the additional property tax levy. ASBSD is in support of the bill.
House Bill 1064: Allows school districts to implement flexible spending accounts as part of health insurance plans, which includes the use of debit cards or direct deposits among other methods. Executive Director Wade Pogany testified in support of the bill, which passed through the House Education committee. ASBSD is in support of the bill.
House Bill 1108: Subjects committees appointed by a school board to open meetings laws. ASBSD opposes this bill.
House Bill 1113: Requires any digital communication (email, text message, etc.) involving a quorum of board members be subject to open meetings laws. ASBSD is monitoring this bill.
House Bill 1114: Requires any defamatory information about an individual, who is employed, seeking employment, etc., with a public body be confirmed before it can be publicized. ASBSD is monitoring this bill.
For updates on these bills and other legislation check the ASBSD blog and bill tracker often.
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BFT bills not expected to affect distribution
Posted Thursday, January 17, 2013
Two bills modifying the Bank Franchise tax (BFT) are not expected to change the percentage of revenue distribution provided to South Dakota counties. School districts located within a county receiving the revenue are allocated a percentage.
Senate Bill 56 defines a credit card bank (think Citibank) and sets the revenue split for the BFT for a credit card bank at 95 percent for state and five percent distributed to the county. The disparity in the split is because revenue received by the credit card bank is nationally collected. BFT collected from community banks is split approximately 73 percent for county and 26 percent for state.
Senate State Affairs committee passed SB 56 at Wednesday’s committee meeting and approved its placement on the Senate consent calendar.
House Bill 1045 sets a tax rate of six percent for income earned by a bank or credit card bank as part of the BFT. HB 1045 was assigned to the House State Affairs committee, but does not have a hearing scheduled yet.
The bills were introduced as a follow up to changes made during the 2012 session to South Dakota law under Chapter 10-43 the Income Tax on Banks and Financial Corporations.
“We don’t anticipate any changes to the distribution of funds, but we’ll continue to monitor their progress,” Executive Director Wade Pogany said.
For updates on the bill check the ASBSD blog and Bill Tracker.
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ASBSD Legislative Roundup
Posted Friday, January 11, 2013
The first week of the 2013 legislative session is complete and a total of 133 bills have been introduced, but, so far, legislation related to K-12 education has been minimal. As we know, however, that will change.
One piece of legislation already introduced that ASBSD is closely monitoring is Senate Bill 15. The bill proposes an increase to the special education tax levy imposed by districts, but caps the extraordinary cost fund provided by the state at $4 million and does not provide an increase in funding for each disability category.
The result of these changes could be an increase in the amount of local effort provided for special education funding. ASBSD will continue to monitor the bill and provide updates on it, as well as other important pieces of legislation as they are introduced.
Note: ASBSD’s Bill Tracker will be populated with bills being monitored by ASBSD and will be fully functional on Monday. If you have questions, please contact Tyler Pickner at tpickner@asbsd.orgor at 605-881-3791.
“Quotes” of Note:
Statements made from the week’s testimony, speeches, social media updates and more.
“As other states are looking to cut, we can look where to spend these dollars.” – Gov. Dennis Daugaard said during his State of the State address.
“There’s still concern out there that we need to secure a long-term funding source for education.” – Senator Billie Sutton of District 21 said in an interview with SDPB following the State of the State address.
“Whether there’s enough to pass anything (ongoing funding for schools), I don’t know, but I think there will be some interest in trying to put it in ongoing — a small amount.” – Rep. Dan Dryden said in an Argus Leader story posted Friday.
“Students that don’t take senior math show up to our door rusty.” – BOR Executive Director Jack R. Warner said during his presentation in front of the House Education Committee on Friday.
“We want all of our K-12 students to be ready for life.” – Secretary of Education Melody Schopp said while presenting at Wednesday’s House of Education Committee.
Past Week Posts:
Daugaard opens session with State of the State Address
Changes coming to open meeting laws?
Meet the House and Senate Education Committees
Alphabet Soup and ASBSD
Categories:2013 Legislative Session, ASBSD, School Funding, SPED, Taxation, House Education Committee, Comments (0) | Link to this story | Send to a friend | Print Story
House passes change in electric cooperative taxation
Posted Monday, February 27, 2012
South Dakota needs to slow the growth of taxes paid by the
state’s electric cooperatives, lawmakers said Friday. The South Dakota House of
Representatives overwhelmingly voted to change the way power cooperatives are
taxed, shifting from a gross receipts tax to a charge per unit of power sold.
Senate Bill 123 affects revenue received by schools outside
of the state’s education funding formula. As approved, the measure would allow
tax revenue collected from cooperatives to grow at about 4 percent per year,
down from the 10 percent annual increases allowed by current law. Backers argue
the change benefits consumers and will allow the cooperatives to compete on a
level playing field with investor-owned utilities.
The bill now moves to back to the Senate, where lawmakers
must vote on changes made in the House. The proposal was altered last week to
include a provision that cooperative lobbyists said would hold schools harmless
from the change while providing a one-year boost to schools as the state shifts
to the new taxation policy.
ASBSD opposes the legislation, and is unable to obtain the
information necessary to validate the impact of the policy.
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House panel advances changes to electric cooperative taxation
Posted Wednesday, February 22, 2012
Lawmakers endorsed Wednesday a proposal to change the way South
Dakota taxes electric cooperatives, a change that opponents argue will reduce
funding for the state’s public schools.
After rejecting a hold-harmless amendment offered by education
advocates, members of the House State Affairs committee changed the bill
slightly and voted 10-1 to send SB 123 to the House floor for further
consideration.
Proponents of the measure, including the electric
cooperatives, told lawmakers that existing state policy has resulted in an
annual 10 percent tax increase on every South Dakotan. Electric cooperatives
currently pay a 2 percent gross receipts tax on the power sold to consumers.
Under the measure, cooperatives will be taxed at a fixed rate per kilowatt hour
sold; a change that the bill’s backers said would stabilize growth to about 4
percent per year.
For schools, the shift in taxation means a decrease in future
district revenue, but the immediate impact on school funding has been difficult
to determine. Education groups, including ASBSD, asked lawmakers to change the
bill to include protections preventing school district revenue from decreasing.
Lawmakers didn’t act on the amendment, and instead added REA-backed language
that the bill’s supporters said “certainly holds [schools] harmless” and gives
schools a “bonus” in the first year.
Lawmakers expressed frustration about the lack of
information detailing the financial impact of the proposed law. Lawmakers
repeatedly requested comparisons of how the change would affect public schools,
but were told by the bill’s supporters that information has been shared only
with local schools across the state.
During time reserved for committee comments, Rep. David Lust,
R-Rapid City, said it was disappointing that no one was willing to share how
the proposed law would impact schools across the state. He also criticized what
he said was a “flurry” of last-minute amendments, arguing that both sides could
have worked together to arrive at compromise.
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Lawmakers pass changes to ag valuation system
Posted Friday, January 20, 2012
Members of the House Agriculture and Natural Resources Committee
on Thursday endorsed changes to the way the state values agriculture land,
approving HB 1003 on a unanimous vote.
The measure modifies laws passed in 2008 that changed the
way agriculture land is valued in South Dakota. The system now determines the
value of cropland based on its productivity value, rather than its market
value. At the time the system was
implemented, lawmakers placed an annual 10 percent cap on the growth of crop
land valuation, a mechanism that lawmakers said would prevent dramatic
increases in property taxes as a result of the shift in the way the land was
assessed.
House
Bill 1003 increases the annual cap to 25 percent, a change that Rep. Paul
Dennert, D-Columbia, told lawmakers would allow county tax officials to better
equalize valuation between different ag land classifications. According to Dennert,
the 10 percent cap prevented as many as 45 counties from truly assessing ag
value.
Under the measure, annual changes in ag assessments will
fluctuate between 15 and 25 percent, depending on how far a county is from
assessing full agricultural income value. Counties that are further from true
valuation will be allowed to capture more growth, making it possible for the
county to achieve full assessment more quickly.
State government officials testified in support of the
change, calling the ag productivity system a work in progress and that the
tweaks are part of the ongoing effort to create a fair and equitable tax
system.
There were no opponents to the measure. ASBSD will continue to monitor the legislation.
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Supreme Court upholds religious school tuition tax credits
Posted Tuesday, April 5, 2011
The school law world is buzzing after the U.S. Supreme Court
handed down a decision in a controversial case involving a law in Arizona that
gives tax credits to individuals paying tuition at private religious schools.
In a divided 5-4 decision, the Court ruled that the
taxpayers couldn’t challenge government expenditures alleged to be
unconstitutional. Plaintiffs attacked the law as a violation of the
Establishment Clause, meaning they argued that the law amounted to the
government sanction of religious belief.
In effect, the decision endorses Arizona’s $54 million tax
credit program, which gives parents up to a $1,000 tax credit for making
donations to “school tuition organizations.” According to the Arizona Republic,
93 percent of the tax credits when to parents of students who go to religious
schools.
Justice Kennedy, joined by Chief Justice Roberts, and
Justices Scalia, Thomas and Alito, delivered the Court’s opinion. Justice
Scalia, joined by Justice Thomas, filed a concurring opinion. Justice Kagan,
joined by Justices Ginsburg, Breyer, and Sotomayer, filed a dissenting opinion.
The Court’s rule came down to an interpretation tax credit
programs. Plaintiffs contended that tax credits and government expenditures are
the same. The Court rejected that argument, saying first that government
expenditure and tax credits may have similar economic impact, but then drawing
a line by ruling “tax credits and governmental expenditures do not both
implicate individual taxpayers in sectarian activities.” The court ruled that
the individual, and not state government, makes decisions to contribute to
school tuition organizations.
Justice Elena Kagan authored the dissent, hammering the
decision that she says creates a ““road map ... to any government that wishes
to insulate its financing of religious activity from legal challenge.”
Check out NSBA’s
Legal Clips review of the case.
It goes without saying that the ruling involves legal
precedent that is much more complicated to review here. Having said that, the
case will be viewed as a tremendous victory for voucher proponents and doubly
important for those who aim to give tax breaks to parents of private school
students.
It’s likely that the ruling will spur legislative attempts
to establish similar programs. But that doesn’t mean that such a program would
work in South Dakota.
Vouchers aren’t practical policy in South Dakota, mostly due
to the state’s tax structure. Without an income tax, deductions would most
likely have to come from property tax rebate. However, the amount of property
taxes varies widely across the state, making it much more difficult to establish
a standard value for a voucher or tax credit.
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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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Hosue panel endorses property tax freeze
Posted Tuesday, February 15, 2011
The House State Affairs Committee Monday endorsed a plan to
allow local property taxes to remain stable if drastic cuts to education are
implemented.
It only took legislators two minutes to hear testimony and unanimously
endorse HB 1110. The bill’s main sponsor, Rep. David Lust, R-Rapid City,
characterized the proposal as a “vehicle bill” intended to minimize the
proposed cuts to education.
“It’s a work in progress at this time,” Rep. Lust said. “There
are many details we need to work out.”
The proposal is conceptually similar to SB 152, a plan
offered by Sen. Larry Rhoden, R-Union Center. It’s likely both HB 1110 and SB
152 will end up in conference committee after lawmakers arrive at a broader
consensus on K-12 funding.
Gov. Daugaard has said he won’t oppose the plan to allow
schools to retain local property tax revenue, but he was clear that he’d prefer
to force local schools to opt-out for the money. Legislators have taken a
different track, arguing that the governor’s plan to reduce property taxes hurts
schools without helping the state budget.
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Update: Revenue raisers up for consideration today
Posted Monday, February 7, 2011
House and Senate State Affairs will hear two measures to temporarily increase the state sales tax. We'll have coverage of the two hearings, but we'll use this post to update you real-time.
- HB 1222: Rep. Tom Brunner's bill to raise the sales tax from 4 to 5 percent for April through November was defeated in House State Affairs on a 9-3 vote.
- SB 174: Sen. Stan Adelstein's bill to raise the sales tax from 4 to 5 percent for June through August will be heard in Senate State Affairs at 10 p.m (the bill was scheduled for a hearing, but no action was taken).
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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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House Ed to hear co-curricular tax plan
Posted Thursday, February 3, 2011
A proposal to establish a new local tax levy for co-curricular
activities will meet its first legislative test during a House Education
hearing on Monday, Feb. 7.
House Bill 1175 would establish a new “co-curricular fund”
that schools must use to pay for co-curricular activities. The measure is
revenue neutral for schools - districts would be able to levy up to $1.40 for
co-curricular related expenses, but any revenue generated locally would be
deducted from the district’s state aid allocation. Schools would be banned from
using any general fund dollars to pay any co-curricular expenses.
In essence, the proposed law shifts additional tax burden
onto property tax payers.
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Several bills look to raise revenue to fund K-12
Posted Wednesday, February 2, 2011
In the face of the governor’s promise to veto any plan to
increase the state’s revenue, several lawmakers have filed bills designed to
increase revenue and prevent cuts to K-12 education.
House Bill
1222 temporarily increases the state sales and use tax from 4 to 5
percent from April to November. The revenue generated would be used to fund
education and other budgetary needs. The legislation is sponsored by Rep. Tom
Brunner, R-Nisland, and Sen. Joni Cutler, R-Sioux Falls.
Senate
Bill 154 raises the sales tax one-half cent for FY12. The revenue would be
dedicated to keeping the per-student allocation flat for next year. The bill is
sponsored by Sen. Tim Begalka, R-Clear Lake, and Rep. Tom Brunner, R-Nisland.
Senate
Bill 174 will raise the state’s sales tax by 1 cent only during the summer
months of June, July and August. The measure’s main sponsor, Sen. Stan
Adelstein, R-Rapid City, has said the measure would raise $50 million annually.
The additional revenue would be used to fund the state’s budget shortfall.
House Bill
1239 seeks to increase the revenue harvested from the health care and
education enhancement trust funds. Under current law, the state collects interest
income from the two funds. Annual distributions from the trust, which equal 4
percent of the value of the fund, are used to fund the state’s general fund
obligations. According to the proposed law, the state would draw 7 percent of
the value of the fund. The bill is sponsored by Rep. Brock Greenfield, R-Clark,
and Sen. Billie Sutton, D-Burke.
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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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A tax shift by any other name is still a tax shift
Posted Thursday, February 18, 2010
Sensing the demise of the governor’s plan to freeze the
state’s property tax levies, the state’s budget chief told lawmakers on Monday
that he plans to seek alternative ways in which to shift state costs on to
local property tax payers.
Jason Dilges, the commissioner of the Bureau of Finance and
Management, made the comments during a House Taxation Committee hearing on HB
1084.
He told legislators that the state has considered preparing
an amendment that would “go about things a little bit differently.” The plan,
Dilges said, was to “roll some additional items into the state aid formula.”
Digles’ comments could mean the state plans on resurrecting
a proposal floated
the last two years to create a “technology and assessment adjustment”
component of within the state aid funding formula. The move forces local
property tax payers to contribute local effort to help pay the costs associated
with technology and assessment.
According to Dilges, the state will work through the
appropriations committee in its attempt to shift approximately $4 million in
state responsibility onto local tax payers.
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House narrowly approves capital outlay flexibility
Posted Thursday, March 5, 2009
UPDATE - 03.06.09- The Senate voted 26-0 to concur with the House amendments. The legislation is now on its way to the governor's desk.
The House of Representatives endorsed legislation Wednesday that will give school districts additional flexibility to spend revenue generated from the capital outlay levy.
Lawmakers approved SB 91 with just one vote to spare, voting 37-30 to give schools the option to spend up to 45 percent of capital outlay revenue to pay for property insurance, casualty insurance, fuel, utilities, energy cots and contract bus services. The local option ends in three years.
The measure now returns to the Senate, where lawmakers in the upper chamber must agree to House amendments. The Senate approved an earlier version of the legislation on 25-9 vote. It's unclear whether Gov. Rounds will sign the bill if lawmakers send it to the governor's desk.
The evolution of SB 91 has been one of the most closely watched legislative issues of the session. Small and mid-sized schools worked with legislators to craft and introduce the legislation, but the plan has met opposition from the state's larger school districts, whose lobbyist has argued against the expansion of capital outlay.
The policy debate played out on the House floor Wednesday.
Rep. Ryan Olson, R-Onida, led the charge against the measure. Rep. Olson, who chairs the House Taxation Committee, told lawmakers that the legislation would essentially give schools two general fund levies.
“If we pass this bill, we may have to amend the title of the fund to the Capital, Transportation, Insurance and Energy Fund,” said Rep. Olson. “Or we could simply say, ‘Let's add three mils to the general school fund levy.'”
He also said the legislation has implications for local property tax payers.
“This bill is a tax increase. If you don't need the levy for capital expenses, the levy would be going down,” said Rep. Olson, adding later that the plan allows local districts to increase taxes for general operations without referring the issue to voters through the opt-out process.
Supporters of the measure challenged those claims, arguing that schools need flexibility to make it through tough economic times and that local school boards and administrators are in the best position to make the decision.
Rep. Quinten Burg, D-Wessington Springs, said the state doesn't have any problems changing rules on funding sources to balance the state budget. He cautioned legislators against telling local school districts how to manage finances.
“Frankly, maybe, sometimes they know how to [manage finances] much better than we do,” Rep. Burg said.
House Education Vice Chair Bill Van Gerpen, R-Tyndall, said lawmakers create problems when they tell school leaders how to spend district resources.
“This Legislature, and prior Legislatures, has consistently and consistently told our schools to spend your reserves down,” said Rep. Van Gerpen, a former school board member, suggesting that the legislation wouldn't be needed if lawmakers hadn't enacted fund balance restrictions. Schools need spending flexibility during the economic recession, he added.
Another former school board member, Rep. Charles Hoffman, R-Eureka, said he trusts local school boards and administrators to protect facility funds. He also likened Senate Bill 91 to the economic stimulus package.
“Had the state of South Dakota not take any of the stimulus money, I wouldn't have a problem voting against this,” Rep. Hoffman said, arguing that lawmakers are invoking a double-standard by taking federal money to balance the state budget while at the same time denying schools flexibility to balance local budgets.
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House Ed endorses capital outlay flexibility
Posted Wednesday, February 25, 2009
Lawmakers strongly endorsed legislation Wednesday to give local school districts additional temporary flexibility to spend capital outlay dollars.
Members of House Education voted 11-4 in favor of SB 91, a measure that will allow school districts the option to spend up to 45 percent of capital outlay revenue to pay for property insurance, casualty insurance, fuel, utilities, energy cots and contract bus services.
Before approving the bill, lawmakers limited the flexibility to three years, rather than the five originally included in the legislation.
Committee members also scratched what became a controversial Senate amendment that would have given local schools broad authority to use the capital outlay flexibility. The bill now says that says school can only use the new spending authority if the district has not increased the capital outlay levy since 2008.
Lawmakers and state officials said the bill had to be changed back to its original version to prevent a large-scale increase in local property taxes.
Dick Tieszen, a lobbyist representing the Sioux Falls School District, opposed the legislation, telling lawmakers that if the legislation locks-in school levies at 2008 levels fewer districts will be able to take advantage of the flexibility offered in SB 191.
“If this is about providing another tool to any district, then don't amend it,” Tieszen said. “I believe you ought to do it for all districts.”
Though the committee endorsed the legislation, some lawmakers became loud critics of a proposal that they said deteriorates the capital outlay fund.
“We are just exchanging one crisis for another crisis,” said Rep. Roger Hunt, R-Brandon. “This is not – and I repeat – not what the capital outlay fund was intended for.”
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Senate approves capital outlay flexibility
Posted Thursday, February 12, 2009
A plan to allow a temporary increase in capital outlay spending authority cleared another hurdled today, winning approval from the Senate on a 25-9 vote.
Sen. Russ Olson, R-Madison, is the prime sponsor of SB 91, legislation that will allow individual school districts the option to spend up to 45 percent of capital outlay revenue to pay for property insurance, casualty insurance, fuel, utilities, energy cots and contract bus services. The spending authority sunsets in five years.
“We are at the beginning of very tough economic times,” Sen. Olson told committee members, reminding committee members that legislators could return home without giving K-12 education a per-student increase.
Olson said school district budget problems are compounded by the rising cost of energy and fuel.
“In any other year, in any other time, I wouldn't bring this bill forward,” he said.
Sen. Jean Hunhoff, R-Yankton, voted against the measure. She said school districts will use the money for ongoing expenses and, when the law phases out, ask the Legislature to make up the difference.
“It's going to have an impact down the road on the Legislature,” she said.
Sen. Cory Brown, R-Gettysburg, said lawmakers should trust local school boards to make prudent decisions.
“I see this as a way to give a little bit of flexibility to our local school boards were were elected and were chosen to make these decisions,” he said.
The legislation must now pass the House.
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Senate Ed endorses capital outlay flexibility
Posted Tuesday, February 10, 2009
Members of Senate Education endorsed a measure Tuesday that will give local school districts more flexibility with the use of capital outlay funds.
Lawmakers passed SB 91, legislation that will allow individual school districts the option to spend up to 45 percent of capital outlay revenue to pay for property insurance, casualty insurance, fuel, utilities, energy cots and contract bus services.
Several administrators testified that the legislation would free up much-needed general fund revenue to help school districts cope through tough economic times.
As originally drafted, schools qualified for the spending authority only if the district's capital outlay levy was less than or equal to the district's levy for the 2007-08 school year.
Lawmakers changed that this morning, saying the original language wasn't fair to all school districts.
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Bill will expand uses of capital outlay fund
Posted Tuesday, January 27, 2009
School districts may be able to pay insurance, energy and transportation costs using capital outlay dollars - a change that could free-up resources in cash-strapped general funds.
Sen. Russell Olson, R-Madison, and Rep. Kim Vanneman, R-Ideal, are prime sponsors on SB 91, a measure that will allow individual school districts the option to spend up to 45 percent of capital outlay revenue to pay for property insurance, casualty insurance, fuel, utilities, energy cots and contract bus services.
According to the legislation, schools only qualify for the spending authority if the district's capital outlay levy is less than or equal to the district's levy in the 2007-08 school year. Districts will lose the option in fiscal year 2015.
Originally, the capital outlay levy was intended to allow school districts to acquire land, build or renovate buildings and purchase equipment. It has since been expanded to allow school districts to reimburse parents for transportation costs and to purchase textbooks, instructional software and warranties.
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