Budget chief opposes property tax freeze
Posted Monday, February 28, 2011
The Daugaard Administration lined up in opposition Monday to
a plan to allow property taxes collected by K-12 schools to remain level next
year.
During testimony on SB 152, a plan put forward by Sen. Larry
Rhoden, R-Union Center, state budget director Jason Dilges told lawmakers that
the governor’s office is shifting their position on the bill because the
legislation now has a one-time $12 million cost to the state’s general fund.
“When it starts costing money to the state’s general fund,
that’s where we have to get involved,” Dilges said.
The one-time windfall is created because property tax levies
are adjusted in the middle of the state’s fiscal year. If the governor’s 10
percent reduction is enacted, levies would stay at their current levels for the
rest of 2011, which reduces by $12 million the amount the state has to
contribute through the state aid formula.
Dilges also warned legislators that reducing the cut to K-12
education means lawmakers will be asked to do to the same for state agencies
and groups impacted by Medicaid cuts.
“This just starts a tear in the bag,” Dilges said. “If you
do this, we’ll never be able to get the structural deficit in-line.”
Lawmakers pushed back against aspects of Dilges’ testimony, which
some legislators called disappointing.
Sen. Rhoden challenged Dilges’ contention that the bill
would impact the structural deficit. He told lawmakers that because the bill
doesn’t create an ongoing expense to the state, it won’t have an impact on the
structural deficit. To fill that one-time hole, Sen. Rhoden suggested that the
state use part of the $26 million in EduJobs money sent to the state earlier
this year.
Rep. Dan Dryden, R-Rapid City, told lawmakers that he’s
disappointed that the governor’s office has chosen to go beyond their proposal
for a 10 percent cut and is now seeking an additional $12 million dollars in
one-time money that could benefit schools.
The committee did not take action on the bill. It was
deferred to a later date.
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Appropriators kill payment shift plan
Posted Monday, February 28, 2011
Sen. Cooper Garnos asked lawmakers Monday to shelve a plan
to shift state aid payments by a few days. The plan was designed to help stall
education cuts, but Sen. Garnos told legislators that the he is now convinced
the plan wouldn’t work.
Lawmakers voted to table SB 133 on a unanimous 9-0 vote, but
not before asking a state official to explain the bill’s flaws.
According to Colin Keeler, a representative of the Bureau of
Finance and Management, the bill as drafted requires schools to credit revenue
from one year into the previous year – an accounting move he says is not
possible.
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Where will Daugaard stand on property tax freeze?
Posted Friday, February 25, 2011
Recent comments from the Daugaard Administration seem to
cast doubt on how the governor will react to a proposal to freeze property tax
levies with the intent of softening cuts to K-12 education.
The Senate passed SB 152, a proposal brought forward by Sen.
Larry Rhoden, R-Union Center, with a veto-proof majority. At a Friday press
briefing, GOP leadership gave a resounding endorsement of the bill, saying its
proof how the Republican Party is working to provide extra dollars to K-12
schools.
But, what will the governor do?
In the past, the governor has said he wouldn’t sand in the
way of the bill. Lt. Gov. Matt Michels, standing in for Gov. Daugaard at a
weekly press briefing, addressed the bill. According
to the Associated Press, the state’s second-in-command gave high praise to
SB 152. The story was published under the headline that read: “Lt. Gov. Michels
lauds property tax freeze.”
Later in the day, another member of the Daugaard
administration hesitated when asked whether the governor supports the bill.
Senior policy advisor Tony Venhuizen told the Rapid City
Journal during a live chat that the governor hasn’t embraced the idea because “it
now has a cost to the state.” As written, the Rhoden proposal would eliminate $13
million in one-time state revenue (for more on why it costs the state some
one-time money, see
the story here). According to Venhuizen, that component of the bill may be
a stumbling block.
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Senate votes to divert fine money away from schools
Posted Friday, February 25, 2011
Senators voted 21-14 Wednesday to allow cities to issue
municipal citations for traffic violations committed on state highways, a move
that opponents contend will siphon money away from schools and could cause a loss
of federal highway money.
Sen. Mark Johnston, R-Sioux Falls, led the charge on SB 164. He asked legislators to approve the bill as a corrective measure following a
Supreme Court decision that said city governments didn’t have the authority to
write citations under municipal ordinance if the violation occurred on a state
highway.
At issue is the fine money generated from the violation.
When a municipal ordinance is used, 65 percent of the money goes back to municipal
governments. If the ticket is written as a violation of state law, 100 percent
of the money goes to schools. The South Dakota Supreme Court ruled last October
that municipalities were improperly directing money to their own budgets and
away from schools.
Sen. Joni Cutler, R-Sioux Falls, tried to convince lawmakers
that the bill wouldn’t work as intended. She argued that since the state, not
city governments, set the speed limits for state highways, fine money is directed
by the South Dakota constitution to go to schools. If the measure passed as
drafted, it would result in another lawsuit with the same result, Cutler said.
Sen. Eldon Nygaard, R-Vermillion, suggested the bill could
be amended in the House to give municipalities the authority to set speed
limits on state highways. Sen. Cutler challenged that notion, saying that giving municipalities that power would
result in a loss of highway funding and would cause disputes over whether the
state or the municipality would be responsible for maintain the road.
If passed, it would shift an estimated $1 million annually
away from schools to city governments. The South Dakota Municipal League, an
organization representing city governments, is pushing the legislation. ASBSD
opposes the measure.
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Payment shift plan passes Senate test
Posted Friday, February 25, 2011
A quickly-developing proposal that would use a one-time
accounting maneuver to free-up money for K-12 schools won approval from the
Senate Wednesday. Lawmakers endorsed SB 133 on a 26-9 vote, even as they
admitted that the bill would need to be changed in the future.
Sen. Cooper Garnos, R-Presho, introduced the plan Tuesday in
the Senate Education committee, at the urging of Parkston Superintendent Shayne
McIntosh. The intent of the legislation is
to allow schools to receive the equivalent of 13 state aid payments next year -
a move that would hold schools nearly harmless from budget cuts next year.
If the bill works as intended, it will move state aid payments
from the end to the beginning of the month, making it possible to shift one
state aid payment into a future state fiscal year. Schools would receive just
11 state aid payments in FY12. The twelfth payment would be delivered to
schools in the state’s FY13 budget year, but schools would receive it as FY12
revenue. The accounting trick would technically save the state approximately
$26 million in the FY12 – money that Sen. Garnos wants to redistribute back to
schools outside the funding formula.
The legislation doesn’t create money, but the accounting
move has the potential of preventing K-12 cuts for another year. The one-time
money that results from the shift wouldn’t be available in FY13, which means
schools would feel the hit then if state revenue hasn’t picked up.
The fate of the proposal is unclear, but it is scheduled for
a hearing in House Appropriations next week.
Lt. Gov. Matt Michaels told members of the media today that
the Daugaard Administration is opposed to the plan. He called it an accounting
gimmick and said it wouldn’t help schools at all.
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Senate passes property tax freeze
Posted Friday, February 25, 2011
The South Dakota Senate approved a measure Wednesday that
will reduce the governor’s proposed 10 percent cut to the per-student
allocation to 6.4 percent. Lawmakers passed SB 152 on a 27-8 vote, putting in
motion a plan to freeze property tax levies for next school year.
To kick-off floor debate, the bill’s prime sponsor, Sen.
Larry Rhoden, R-Union Center, introduced a long-awaited amendment that
fleshed-out the plan he’s been pushing since the beginning of the session. The
change established a per-student allocation of $4,494.28 for FY12 and lowered
the percentage the state contributes to schools through the state aid formula.
Prior to Wednesday’s debate, lawmakers claimed the bill
would reduce the proposed cuts to 5.6 percent. According to Sen. Rhoden, the
proposal didn’t reach that threshold because valuations for commercial and
owner-occupied property remained flat this year. Shaving $40 per-student from
the proposal prevented a property tax increase on businesses and homeowners,
Rhoden explained.
Opponents of the plan argued the bill shifts too much onto
local property tax payers and leaves a hole in the state budget.
Sen. Al Novstrup, R-Aberdeen, urged lawmakers to vote
against a plan he says will transfer $9 million to local property tax payers. “This
is just going in the wrong direction,” he said.
THE $13 MILLION HOLE
Sen. Jeff Haverly, R-Rapid City, was more concerned that the
bill leads to a losss of $13 million in one-time state revenue. He cautioned lawmakers about making the state’s
deficit worse by passing SB 152.
The $13 million one-time windfall is created because the
state budget year conflicts with the way property taxes are collected. The
state budget runs on a fiscal year from July through June, and property taxes
are collected on a calendar year. That means property tax levies are adjusted
in the middle of the state’s fiscal year.
The governor’s budget is based on passage of his 10 percent
cut to the per-student allocation, including a reduction in local property tax
levies. If the governor’s plan is enacted, levies would stay at their current
levels for the rest of 2011 and then drop significantly at the beginning of next
year. The overlap lessens the amount the state has to contribute through the
state aid formula for half the year, creating a one-time $13 million windfall for
the state.
Supporters of SB 152 acknowledged the loss of money to the
state, but stressed that the one-time revenue bump couldn’t be budgeted for
ongoing state expenses.
APPROPRIATOR OPPOSITION
Republican members of the Senate Appropriations voted in
bloc against SB 152. The Senate’s budget-makers seemed most concerned about
having to find $13 million to help the state’s budget this year.
House leadership has referred the bill to House
Appropriations, which typically isn’t a good sign for education funding
measures because the committee works closely with state budget director Jason
Dilges, who has proven to be a formidable defender of the state’s interests. If members of the House Appropriations
committee take a similar stance as their Senate counterparts, the bill may have
a difficult path in the House.
The governor’s office has yet to comment on the lost revenue
resulting from the measure, but Gov. Daugaard has gone on record saying he wouldn’t
oppose the measure.
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Crossover aftermath
Posted Thursday, February 24, 2011
Yesterday marked the critical “crossover day”
deadline for the South Dakota Legislature. Several key education bills were
delayed until this important deadline. Here’s what happened.
SENATE BILL 152 – THE “RHODEN” BILL
The Senate amended then passed SB 152, legislation
that aims to keep local property taxes level to blunt the impact of the
proposed 10 percent cut to the per-student allocation. It passed on a 28-7
vote. Though the bill had been advertised conceptually to reduce the cut to 5.6
percent, today’s amendment shows that the 10 percent cut will be reduced to a
6.4 percent cut. Today’s amendment included the following components:
- It sets the per-student
allocation for FY12 at $4494.28, a cut of $310 per-student but $170
per-student higher than Gov. Daugaard’s recommendation.
- It changes a ratio in state law that establishes
the percentage share of state and local revenue delivered through the state aid
formula. Currently, on a statewide basis the state is responsible for 56.5
percent and local property taxes contribute 43.5 percent. Under this bill, the new ratio will be 53.8 percent state and
46.2 percent local.
- It also establishes levies for the various classes
of property.
According to floor debate today, the bill did not
reach the 5.6 percent threshold because moving that far would have produced a
property tax increase on commercial property. Sponsors were clear that they
didn’t want taxes to increase. Two other House bills that address levies – HB
1243 and HB 1110 – also passed the House.
SENATE BILL 133 – DELAY STATE AID PAYMENTS
The Senate passed SB 133 on a 26-9 vote. The bill,
which was hoghoused earlier this week, would shift state aid payments from the
end of the month to the beginning of the month, freeing up one state aid
payment in FY12. The bill is still a work in progress, but it has potential to
soften cuts to K-12 education, provided the bill is amended properly.
SENATE BILL 185 – THE GOVERNOR’S 10 PERCENT CUT
Even though the Senate voted to establish the
per-student allocation in SB 152, they kept the governor’s bill alive as a
“vehicle bill.” They amended it so the bill so it doesn’t function properly
with the intention of sorting-out school funding in a conference committee.
SENATE BILL 149 – CONCUSSIONS
The Senate passed SB 149 on a 31-4 vote. In its
amended version, the new concussion education programs and return-to-play
guidelines only apply to school sports and do not extend to other youth
activity groups. The bill requires concussion education programs for coaches,
athletes and parents. It requires athletes to be removed from sports if they
exhibit concussion symptoms and says the player can’t return to play until he
or she has been cleared by a medical professional. Also provides liability
protection for schools.
SENATE BILL 164 – DISTRIBUTION OF TRAFFIC VIOLATION FUNDS
The Senate passed SB 164 on a 21-14 vote. The bill
would divert fine money away from schools and to municipal governments.
SENATE BILL 126 – THE “JOHNSTON” BILL
A proposal to keep the per-student allocation level
(while banning opt-outs for two years) failed in the Senate on a 11-24 vote.
SENATE BILL 77 – BUSSING AGREEMENTS
A proposed law that requires schools to agree on
transportation pick-up points for open-enrolled students passed the Senate on a
23-12 vote.
HOUSE BILL 1229 – FORCED CONSOLIDATION REPEAL
The House voted 57-12 to remove the requirement
that schools with enrollments below 100 must reorganize.
HB 1203 – CAPITAL OUTLAY FLEXIBILITY
The House voted to table HB 1203, a bill that would
have allowed schools to recover lost state aid by transferring money from the
capital outlay fund. Another bill, SB 111, that extends current capital outlay
flexibility is still alive.
HB 1250 – OPPORTUNITY SCHOLARSHIP
A governor’s bill to change the requirements for
the opportunity scholarship was tabled in House Appropriations.
HB 1208 – ELIMINATING EDUCATION MANDATES
A proposal aimed at saving schools money by eliminating mandates
passed the House 51-18. It was amended on the floor to include the elimination
of three mandates: Schools would no longer be able to reimburse potential
employees for the cost of background checks; the requirement for annual bus
driver training would be changed to require bus drivers to undergo – and pay
for themselves – appropriate training once every five years; and it allows
schools to send notifications or correspondence to parents via e-mail, rather
than postal mail, as long as the parent opts-in.
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Crossover day updates
Posted Wednesday, February 23, 2011
It's crossover day, and we'll have plenty of action on the House and Senate floor. We'll talk about the action here in a live blog format, then come back to give the details later.
- The Senate is currently debating has killed SB 126, a measure to leave the per-student allocation the same. Needed a two-thirds majority, lost 11-24.
- The House is debating has tabled HB 1203, a capital outlay flexibility bill.
- The Senate is debating has passed SB 152 on a 28-7 vote. Changes to the bill - no longer 5.6 percent, more like 6.4 percent cut to K-12. Sets new PSA at $4494.28 for FY 12.
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Update: Tuesday short shots
Posted Tuesday, February 22, 2011
There's plenty going on around the Capitol today. We'll try to keep you updated with a running short shot, with details on some bills coming later:
- Members of Senate Education passed SB 149, a bill that would require concussion education programs and institute return-to-play guidelines for student athletes. The Department of Education testified in opposition the bill.
- House Appropriations passed HB 1243, the governor's plan to reduce property tax levies commensurate with a 10 percent cut to K-12 education.
- House Appropriations tabled HB 1250, the governor's proposal to change requirements of the opportunity scholarship.
- Senate Education hoghoused SB 133, turning it into a bill that would defer state aid payments by a few days. More on this bill later.
- Senate Appropriations passed SB 185, the governor's plan to reduce state aid by 10 percent.
Live updates from the Senate and House floor coming soon - check back!
- The Senate passed SB 77, legislation requiring schools to agree upon pick-up points for the transportation of open-enrolled students. They added an amendment to exempt sparse schools from the requirement.
- The House passed HB 1208, a bill aimed at lifting unfunded mandates placed on K-12 education.
- The House passed HB 1110, a counter measure to the governor's proposal to reduce property tax levies commensurate with a 10 percent cut in the per-student allocation.
- The House passed HB 1229, legislation aimed at eliminating the 100-student minimum.
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Raising revenue is on the table
Posted Friday, February 18, 2011
The South Dakota House of Representatives has proven that
lawmakers have the courage to raise revenue to provide for essential government
services. Unfortunately, their decision was not focused on raising revenue for
K-12 education.
Legislators voted 53-13 on Wednesday to increase vehicle
registration fees by nearly $30 million to help counties and townships make
repairs to the state’s roads and bridges. Legislators speaking in favor of the
bill continually stressed the dire need to increase funding for the state’s
road system.
The move is in stark contrast to the Legislature’s posture
on raising revenue to prevent cuts to K-12 education. Several bills to raise
the state sales tax to fund K-12 education have met their demise at the
committee level. The lone option remaining - SB 174 – would raise $50 million for
education and Medicaid by increasing sales taxes during the summer months.
Though most bills to raise revenue for K-12 have failed, Sen.
Tim Rave, R-Baltic, told members of the media Thursday that the GOP leadership is
keeping “all options on the table.” The Republican caucus has formed a working
group to look at ways to increase revenue. According to ASBSD lobbyists, discussions
are picking-up surrounding a ballot initiative to raise the state’s sales tax
by 1 cent to help fund education and Medicaid.
Gov. Dennis Daugaard told members of the media Thursday that
he opposes the effort to raise $30 million for roads. He hinted that he’d veto
the bill, even though he recognizes the House passed the measure with a
veto-proof majority. When asked whether he’d oppose an initiated measure to
raise the state’s sales tax, the governor said he wouldn’t stand in the way of
the effort.
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Stand-up for Public Education Day
Posted Friday, February 18, 2011
A grassroots movement is building to encourage South Dakotans to travel to Pierre on March 2 to support public education and to stand against proposed cuts for K-12 education.
Jenn Gustafson, a member of the Langford School Board, is part of a group of public school advocates organizing Stand up for Education Day. ASBSD and the South Dakota Education Association are helping sponsor the event.
According to Gustafson, the event is meant to rally education supporters from all size school districts. She has planned a full day of activities, including time to meet with legislators about the proposed cuts to K-12 education. View the agenda here, download and print a poster here, and for Facebook users, you can access event details here.
Some education advocates plan to use the day to deliver a petition aimed at increasing the state’s sales tax to help fund K-12 education and Medicaid. Marylynne Fields, a former Milbank school board member who also served on the ASBDS Board of Directors, is collecting signatures and has spread petitions across the Northeast area of the state.
KELO caught up with Marylynne on Thursday, you can read the story here, and check out the video below.
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Recovering from K-12 cuts could take 9 years
Posted Wednesday, February 16, 2011
It could be 2021 before per-student education funding
returns to current levels, according to a new analysis from the state school
board association.
ASBSD projected future funding increases based on trends in
the CPI-W, the inflationary factor that typically governs increases per-student
funding. Using two different projections models, ASBSD concluded that it would
take six to nine years to for the per-student allocation to grow past the
current level of $4804. The projection starts with base funding of $4324 per
student, the amount that schools would be provided if Gov. Dennis Daugaard’s
proposed cuts are implemented.
Estimates are based on two different annual adjustments. The
first uses an average rate of 1.25 percent per year, which mirrors the
post-recession growth in the CPI-W. The second uses annual growth of 2 percent,
which is the average growth in the CPI-W over the past 10 years.
To see the projections, click
here.
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Update: House Ed votes to scrap forced consolidation
Posted Wednesday, February 16, 2011
Members of House Education took the first step Wednesday to
scrapping the state’s policy that forces schools to close if district
enrollment drops below 100 students. Lawmakers endorsed HB 1229 by a 10-3 vote,
sending the governor-backed bill to the House floor.
The minimum district size was established in 2007 as part of
a large package of education reforms that included revisions to the state aid
formula and an adjustment to fund balance limitations. Since then, there have
been several failed attempts to raise the enrollment threshold.
House Education Chair Rep. Thomas Brunner, R-Nisland, gave
up his gavel to act as the lone opponent of the legislation. He asked committee
members to reject the bill, arguing the need to keep the 2007 reforms intact.
According to Rep. Brunner, establishing a minimum district size was the piece of
the 2007 reform package that prevented large schools from opposing the omnibus
legislation. Keeping the law in place, he argued, is a “matter of fairness.”
Gov. Daugaard dispatched senior policy advisor Tony Venhuizen
to testify in support of the measure. He told lawmakers that repealing the
minimum size would give local education leaders the respect they deserve.
Venhuizen also challenged the notion that large schools benefit from forced
consolidation.
“I don’t think you make your own candle brighter by blowing
out someone else’s,” Venhuizen said.
ASBSD Executive Director Wayne Lueders also testified in
support of the bill. He told committee members that ASBSD believes
reorganization should be voluntary and initiated by the voters in small
communities. Lueders also said eliminating the minimum size rids our state of
the “fear factor” that arises as district enrollment starts to dwindle – a situation
he said sometimes forces schools to seek students through open enrollment just
to keep the school doors open.
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Bill to eliminate unfunded mandates moves on
Posted Tuesday, February 15, 2011
Members of House Education signed off on legislation that
would eliminate costly mandates placed on public schools.
Lawmakers have yet to identify which mandates would be
repealed. The prime sponsor of HB 1208, Rep. Brian Gosch, R-Rapid City, asked
lawmakers to approve the legislation forward despite a lack of specifics. He told
the committee that he has asked schools to come up with a top-five list of costly
state mandates, which will be incorporated into the legislation later.
The bill was approved on a 9-4 vote. Legislators who voted
against the proposal suggested that the plan shouldn’t advance until it
contained a list of cost-saving measures. Supporters said details shouldn’t
delay the bill, and that the concept needed to advance.
The proposal moves next to the House.
DISCUSSION: Drop a comment if you can list a costly state
mandate that could be repealed.
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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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Daugaard sounds off on legislative proposals
Posted Friday, February 11, 2011
Gov. Dennis Daugaard gave his assessment Thursday of three legislative
proposals designed to offset cuts to K-12 schools and give schools more flexibility
with existing resources.
The governor endorsed granting schools
more flexibility in the use of capital outlay revenue – a move he said would
help schools cope with his proposed cuts. Gov. Daugaard said the capital outlay
levy is unique to schools, adding that city or county governments don’t have a
specific revenue stream to pay for buildings. He questioned whether it’s
appropriate for the state to restrict how those funds can be used.
The Senate has already passed SB 111, which temporarily
extends authority to use capital funds to pay for some insurance, energy and
transportation costs. On the House side, Representatives are considering HB
1203, a measure that would remove all restrictions on the use of capital outlay
money. If passed, schools would be able to make up revenue lost to state aid
cuts by transferring capital revenue to the general fund for operational
expenses.
The governor chose his words carefully when asked whether he’d
support measures designed to reduce proposed 10 percent cuts by allowing local
property taxes to remain stable. Sen. Larry Rhoden, R-Union Center, and Rep.
David Lust, R-Rapid City, have both introduced proposals that would effectively
reduce K-12 cuts to 5.6 percent by allowing property tax payers to pick up a
larger share of the responsibility to fund education.
Gov. Daugaard signaled he was open to the idea, but made it
clear that it’s not the direction he’d prefer. “I’m not opposing the bill, but
my preference is that it would be a district-by-district decision,” he said.
The governor was more direct when asked about a third education-related proposal that would
use funds from the Education Enhancement Trust Fund to keep the per-student
allocation level. The plan, filed as SB 126 and put forth by Sen. Mark Johnston,
R-Sioux Falls, requires schools to lend the state approximately $83 per student
for two years. Beginning in 2014, the state would repay school districts using money partially generated from interest earnings on the trust fund.
Citing concerns that the measure would harm the trust and
limit the fund’s annual contribution to the state’s general fund, Gov. Daugaard
promised to veto the measure if it made it through the legislative process.
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Cities take aim at school resources, get turned away twice
Posted Friday, February 11, 2011
Lawmakers voted down two proposals this week that would have
shifted financial resources away from schools and into city coffers. Both
efforts were backed by the South Dakota Municipal League, the advocacy
organization representing city government officials.
Legislators voted down a proposal Wednesday that sought to
change the make-up of local boards of equalization, shifting majority control
to school districts. Schools would have been required to assume administrative
costs of conducting the equalization meetings. By rejecting SB 97 on a 21-13
vote, municipal governments will continue to have majority representation on
equalization boards, which act as a first-line appeals process for local
property valuation. A school board member from each school district will continue
to serve on each panel.
Rep. Shantel Krebs, R-Renner, tried to convince lawmakers
that school districts needed to assume control of the boards because schools,
not municipalities, receive the bulk of property taxes. She chided school
boards not showing up to equalization meetings and for not wanting to assume
the responsibility for valuation appeals.
“That one school board member that should be on the local
board of equalization usually doesn’t show up,” Krebs said before suggesting
that the biggest beneficiaries of property tax dollars should be willing to
show up and talk to citizens about their property tax concerns.
Sen. Mark Johnston, R-Sioux Falls, spoke in opposition to
the plan. He chronicled e-mail communications from school board members, county
commissioners and city officials – all of whom he said opposed the change.
“If the counties don’t want it, if the school boards don’t
want it, if the city counselors don’t want it – what are we doing,” Sen. Johnston
said.
Other lawmakers argued against the change because they
believe the current process is better for property owners. Sen. Stan Adelstein,
R-Rapid City, characterized the proposal as “grossly unfair” to property tax
payers because schools have a greater interest in higher valuations.
FINE REVENUE
The Senate Judiciary Committee voted down an attempt
Thursday by the Municipal League to reverse a recent South Dakota Supreme Court
ruling that concluded city governments were improperly enforcing traffic
violations on state highways.
Fine revenue collected from a violation of municipal ordinance
flows to city governments. When revenue is generated from a traffic violation
on a state highway, the money goes to schools. By using the improper
enforcement procedure, city governments were collecting money for the city’s
coffers at the expense of the state’s school districts. The issue was settled
by the Supreme Court last year, when the Court determined that the South Dakota
Constitution requires all revenue from state fines be distributed to schools.
The Municipal League is pushing SB 164 to try to counter the constitutional
mandate.
Dick Tieszen, a lobbyist representing ASBSD, testified in
opposition to the legislation, urging lawmakers to ignore the back-door attempt
subvert the Constitution and divert funding from the K-12 schools.
Yvonne Taylor, the executive director of the Municipal
League, countered Tieszen’s testimony, arguing that the money isn’t being
diverted from schools because cities have been following the procedure for
years.
Sen. Mike Vehle, R-Mitchell, voted against the measure,
arguing that the state sets traffic laws for state highways and the
Constitution clearly requires the money to go to schools.
Members of Senate Judiciary deferred the legislation to the 41st
legislative day on a 4-3 vote, which typically kills the measure. However,
ASBSD lobbyists have confirmed that the Municipal League is attempting to
revive the bill using a legislative maneuver called a “smoke-out.”
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Open Thread: Crackerbarrel reports
Posted Friday, February 11, 2011
If you've attended a crackerbarrel, sum up for us what the mood has been regarding K-12 education cuts.
Open Forum spent some time at the Pierre crackerbarrell Friday morning. We were surprised to see an overwhelming majority of hands go up when asked if there was support for a tax increase to help solve the budget crisis.
What's going on at crackerbarrels around South Dakota?
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Senators stop bill to change kindergarten count
Posted Friday, February 11, 2011
A proposed law that would have cut funding for districts who
don’t offer full-time kindergarten programs was stopped Tuesday in the South
Dakota Senate. Lawmakers defeated SB 72 on a 22-13 vote, effectively killing
the plan.
Sen. Deb Peters, R-Hartford, pitched the idea to lawmakers
as a way to ensure the state earns sufficient return on its K-12 investment.
She likened the concept behind the bill to a business that pays a part-time
employee a full-time salary.
“This is something that needs to be addressed and corrected,”
Sen. Peters said. “The state is paying full price and only getting half the
product.”
A chorus of Rapid City legislators argued for the bill,
saying it’s the right thing to do even though their home district will lose the
most state funding as result.
“Continuing to do it wrong will never make it right,” said
Sen. Jeff Haverly, R-Rapid City. “Let’s fix this problem right here, right now
instead of passing it along to future Legislatures.”
Sen. Cooper Garnos, R-Presho, led the opposition to the
plan, saying the change would “cause significant hardships throughout South
Dakota.” If the measure passes, some schools would lose funding they are
investing in other areas of their budget, he argued.
As the debate progressed, lawmakers expressed frustration at
the lack of data regarding full-time kindergarten. The state education
department doesn’t track which schools offer full-time kindergarten and there
is no state information to back-up whether full-time kindergarten prepares
students better than part-time programs. The bill was defeated, but sponsors
hinted that the concept will come back next year, after the state has collected
sufficient data on kindergarten programs.
ASBSD opposed the legislation.
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Senate OKs elimination of fund balance limits
Posted Friday, February 11, 2011
Citing tough financial times and the need to give school
boards more flexibility, members of the South Dakota Senate voted 27-8 Monday
to repeal limits and penalties on school district general fund balances.
The proposal, officially filed as SB 200, is part of Gov.
Dennis Daugaard’s legislative agenda. The effort stems from his campaign pledge
to return local control to school districts.
Sen. Cooper Garnos, R-Presho, pitched the bill to the full
Senate. He told lawmakers that fund balances have fallen and financial penalties
issue have dwindled – two facts he said suggest that the fund balance caps have
outlived their usefulness. Sen. Garnos also argued that the tough financial
times dictate that school boards need more authority to manage district
budgets.
Sen. Phyllis Heineman, R-Sioux Falls, was one of the few
lawmakers who voiced opposition to the measure. After wrongly characterizing fund
balances and reserve accounts, she asked lawmakers to
“continue the scrutiny” on school finances by maintaining the state-established
limits.
The measure now moves on to the House.
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Wednesday short shots
Posted Wednesday, February 9, 2011
Here’s what’s happening around the Capital today.
- House Education killed a bill that would have
required DOE to develop curriculum on the history of the labor movement.
- House Education passed HB 1203, legislation that
would allow school districts to make broad use of capital outlay revenue to
replace state aid lost due to any decrease in the per-student allocation.
Later today, the Senate is scheduled to hear SB 126 and SB
152, two measures that would soften the impact of the proposed cuts. The House
will consider bills to prevent South Dakota from adopting common history
standards and to create a jump-start scholarship program for students who
finish high school in three years.
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Senate Ed moves to spare K-12
Posted Tuesday, February 8, 2011
Two proposals intended to prevent cuts to K-12 education won
approval Tuesday from the Senate Education Committee.
Senate Bill 152 softens the impact of the governor’s
proposed education cuts by increasing the percentage of local property taxes
used to fund schools. The bill’s sponsor, Sen. Larry Rhoden, R-Union Center,
told lawmakers that adjusting the ratio of state and local funding would reduce
the proposed 10 percent cut to 5.6 percent without raising local property
taxes. In the process, the state’s share of the state education formula would drop
from 56 percent to approximately 53 percent.
Sen. Rhoden also took time to solidify the intent of the
legislation. After hearing some concern from schools with low property
valuation, he reassured committee members and education advocates that the bill
is intended to help all schools equally, regardless of the district’s local tax
base.
ASBSD testified in support of the legislation, which was
also backed by the business and agriculture leaders.
The proposal passed on a 6-1 vote, with Sen. Elizabeth
Kraus, R-Rapid City, acting as the only dissenting voice. Sen. Kraus told
lawmakers that the state needs to prepare for future increases in Medicaid spending
by cutting education spending and local property taxes now.
Sen. Tim Rave, R-Baltic, called the measure a “good first
step to softening the blow without raising taxes.”
After voting to hold local property taxes steady, members of
Senate Education endorsed what they called a “creative” plan to stabilize the
per-student allocation. Lawmakers approved SB 126 on a 5-2 vote, sending a
second education funding measure to the full Senate for consideration.
The proposed law, pitched by Sen. Mark Johnston, R-Sioux
Falls, uses interest income from the Education Enhancement Trust Fund to create
an education stabilization fund. Schools would lend the state $10 million per
year in 2012 and 2013, reducing the state’s share of education funding while
the economy recovers. The state would repay schools starting in 2014.
The proposed law is the only plan that holds the per-student
allocation steady – a proposal that would allow K-12 education to recover from
proposed cuts much more quickly. As a trade-off, schools would be barred from
issuing new opt-outs for two years.
Education advocates reluctantly testified against the
measure, voicing the strongest objection to the prohibition on opt-outs. If
that provision was eliminated, educators would support the bill, they said. State
economist Jim Terwilliger also stood opposed, reminding lawmakers that the
governor prefers deep cuts to K-12 education.
Sen. Todd Schlekeway, R-Sioux Falls, asked legislators to
support the bill. He said the bill wasn’t perfect, but praised it for being the
kind of creative solution that taxpayers expect lawmakers to find.
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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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Monday House Ed short shots
Posted Monday, February 7, 2011
House Ed is a killing field this morning. Briefly, here’s
what happened this morning:
- The committee passed HB 1153, legislation
focused on preventing the state from adopting national history standards. The
bill was amended, then passed 8-4.
- The prime sponsor of legislation to ensure
schools are teaching about certain historical documents asked the bill be
killed.
- The prime sponsor of legislation to allow
schools to open licensed daycare centers asked the bill be killed.
- A bill that would have created a co-curricular
tax levy was shelved when the measure’s prime sponsor introduced a complete
rewrite of the legislation. In its amended form, HB 1175 creates a “Jump Start”
program for students who complete high school in three years. It offers a $3,500 scholarship for students
who graduate early. The bill passed
12-2.
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Amendment improves open records bill
Posted Thursday, February 3, 2011
Thanks to a complete rewrite of the legislation, a measure
aimed at establishing a civil penalty for denying access to public records has
become more workable for government entities that act as custodians of records.
The proposed law, branded as a way to put teeth into our
state’s public records law, is designed to give the public recourse against
government officials who unreasonably deny access to public records.
ASBSD was opposed to the legislation in its original form. As
drafted, SB 101 appeared to circumvent a state process that settles disputes
over whether a record is public. The original version also created the
potential for individuals to be held personally and financially liable for decisions
to deny public records.
As amended, the bill channels contention over public records
through the Office of Hearing Examiners. If the impartial body deems the
records are public, the government entity has 30 days to provide the records or
appeal the decision. If a public entity continues to deny access, a court will
need to determine that the entity acted unreasonably and in bad faith – if so,
the court can award civil penalties not to exceed $50 per day. The change to
the bill also removes individual liability, making the government entity
responsible for unreasonable and bad faith actions.
ASBSD is now monitoring the bill.
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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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Budget director defends state Edujobs plan
Posted Thursday, February 3, 2011
The state acted outside of the intent of federal legislation
aimed at saving education jobs but met its obligations to comply with the
letter of the law, the state’s top budget official said Thursday.
State Budget Director Jason Dilges made the comments during
his testimony against HB 1205, a measure that would require the state to
distribute $26.3 million - the amount sent to South Dakota last August - to schools during the current fiscal year. Responding
to criticism that the state didn’t use the money the way the Congress intended,
Dilges defended the state’s plan.
“I can’t deny what the intent was in Washington, D.C.,”
Dilges said before saying that the U.S. Department of Education gave South
Dakota the permission to supplant state funds with federal dollars. “South
Dakota has and will fully comply with 100 percent of what is in the legislation.”
Yankton Superintendent Joe Gertsema was one of three school
administrators who asked committee members to approve the measure. Gertsema
told lawmakers that South Dakota’s plan didn’t match the federal intent, which
was to provide emergency aid to schools and to prevent teacher layoffs.
Instead, the state kept the money to bolster its budget, he said.
Appropriations Chair Rep. Dean Wink, R-Howes, was the only
legislator to speak in favor of the plan. He said the state has obligations
other than K-12 education, and that the money saved by is
needed to sure-up the state’s budget.
The committee voted to table the bill on a 5-3 vote.
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Fund balance repeal sails out of committee
Posted Thursday, February 3, 2011
Backed by the weight of the governor’s office, a proposal to
eliminate restrictions on school district general fund balances won unanimous
approval Thursday from members of Senate Education.
The committee sent SB 200 to the floor on 6-0 vote. The
legislation repeals sections of state law that define fund balances,
establish fund balance caps and set-up sanctions for districts with balances
that rise above state-defined limits.
Gov. Dennis Daugaard first pledged at the ASBSD and SASD
Convention in August to initiate legislation to repeal fund balance caps. He
later made the idea part of his K-12 platform. On Thursday, the governor dispatched
senior advisor Tony Venhuizen to rally
support for the legislation.
“Gov. Daugaard believes very firmly in the notion of local
control,” Venhuizen said. “We need to give schools the flexibility to manage
themselves.”
Legislators put up little resistance. In a period of time
reserved for committee comment, lawmakers remarked simply that the bill is “the
right thing to do.”
ASBSD supports the legislation.
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Bill would slash small school ajustment, fund ESAs
Posted Thursday, February 3, 2011
A newly proposed law would trim funding for small schools to
restore funding for the state’s six Education Service Agencies.
Senate Bill 165 cuts the maximum value of the small school
adjustment to $3,814, down from its current upper limit of $4,238. The
reduction would generate nearly $1 million that would be used to fund regional
school service agencies.
The bill’s prime sponsor is Sen. Phyllis Heineman, R-Sioux
Falls, and Rep. Scott Munsterman, R-Brookings.
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Funding for open-enrolled students to remain unchanged
Posted Thursday, February 3, 2011
Members of Senate Education voted 5-2 Tuesday to turn away
legislation aimed at reducing per-student aid for students who attend school
outside his or her resident district.
Senate Bill 85 proposes a change to the way open-enrolled
students are funded. If a student open-enrolls to a district that receives the
small school adjustment, the per-student allocation for that child would be
based on the resident district’s fall enrollment.
Sen. Deb Peters, R-Hartford, tried to convince lawmakers
that SB 85 would restore fairness to the formula and save taxpayers $1.1
million. She called on lawmakers to support the bill and to put a stop to
schools receiving “bonus” money and to ensure students are “switching schools
for the right reasons.”
Avon Superintendent Tom Culver and Elkton Superintendent
Tony Simons lined up in opposition to the legislation. The two administrators
stressed to lawmakers that parents and students are making a choice to attend a
smaller school. They also detailed the financial hardship the measure would
cause in their districts.
While several committee members credited Sen. Peters for
making a strong case for the bill, lawmakers opted to kill the bill. Sen. Todd
Schlekeway, R-Sioux Falls, told lawmakers that he hopes action on another bill
regulating busing would work to accomplish the goals of Senate Bill 85.
The discussion on the bill frustrated Sen. Mark Johnston,
R-Sioux Falls. He called for educators and lawmakers to work together to update
the state’s struggling school finance system, which he said dates back to the
1950s. Budget battles have legislators “vapor-locked,” he said, which prevents
real discussions about education funding reform from happening.
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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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Senate Ed passes kindergarten changes
Posted Thursday, February 3, 2011
A proposal that will change how kindergarten students are
counted passed its first legislative hurdle Tuesday. Members of Senate Education
approved SB 72 on a 4-3 vote, opting to define full-day kindergarten in state
law and limiting state funding to districts that offer half-day programs.
Before narrowly endorsing the concept, lawmakers modified
the bill slightly. Legislators added a delayed implementation, making the bill
fully effective in 2013 and reducing the financial blow in 2012. In its amended
version, students who don’t attend a full-day program in 2012 will be counted
as .75 students for fall enrollment purposes. The committee also added language
that would distribute back to schools any savings resulting from the bill’s
implementation.
Sen. Deb Peters, R-Hartford, pitched the bill as a fairness
issue and as a way to ensure the state is getting the maximum return on the
state’s investment.
“The state is paying full price for part time,” Sen. Peters
said, adding later that the bill was a possible way to blunt the impact of a proposed
10 percent cut to K-12 education.
Education groups, including ASBSD, opposed the change, arguing
that the change would add additional financial burden in a year when the
governor has proposed deep cuts to schools.
Senators Rave, Schlekeway, Kraus and Johnston voted in favor
of the bill. Senators Garnos, Gray and Bradford voted against the measure.
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Lawmakers reject bill to allow for online minutes
Posted Wednesday, February 2, 2011
A House committee has turned away legislation that would
have allowed local governments to post meeting minutes and legal notices online
instead of paying to publish them in newspapers.
Members of House Local Government rejected HB 1078
Tuesday on a 9-4 vote. Lawmakers who voted against the measure argued that the move would limit access to government
notices, particularly for elderly people in small towns.
A parade of local government and school officials, including
the Department of Education, testified for the measure. Supporters cited
efficiency and the possibility that posting online would broaden access as
major reasons to pass the legislation.
The South Dakota Newspaper Association was the lone
opponent. The lobbying group argued that the bill would not save much money and
that the only sure way to protect the accuracy of the notices was to have them
published by an independent third party.
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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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Updated: House stalls school counselor mandate
Posted Wednesday, February 2, 2011
Update: The South Dakota House of Representatives reconsidered the vote Wednesday. HB 1070 passed 46-23 as amended. The bill does not require schools to employ a counselor, but if a school has a counselor on staff, the person must be certified.
Legislation that would have forced every school to employ a
certified counselor has been stopped in the South Dakota House of
Representatives.
House Bill 1070
narrowly failed Tuesday after lawmakers softened the bill’s language. The
amended version says all counselors hired by schools must be certified, but it
doesn’t require schools to have a counselor on staff. The proposed law failed
on a 35-35 vote.
ASBSD opposed the legislation in committee, telling
legislators the bill amounted to an unfunded mandate.
Rep. Jacqueline Sly, R-Rapid City, tried to convince
lawmakers that the state needed to raise the bar for the counseling profession.
She said many schools hire teachers and administrators to function as
counselors, but those individuals lack training to help treat the emotional
needs of children.
Opponents to the measure argued against the notion that
certification was necessary and that the change could cost schools money.
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Update 3: Tuesday short shots
Posted Tuesday, February 1, 2011
From Senate Education this morning:
- On a 4-3 vote, the committee passed SB 72, legislation that will change how kindergarten students are counted. The bill was amended twice in committee - Open Forum will have more details later today.
- The committee deferred SB 85 to the 41st Legislative Day. The bill would have removed small school adjustment funds for students who open enroll.
- On a 4-3 vote, the committee passed SB 137, a measure that would require all schools to adopt a policy on hazing.
And, while we're at it:
- On Monday, the Senate passed SB 111 on a vote of 29-6. The bill would give schools two more years to use capital outlay flexibility granted in 2009, which currently allows schools to use capital outlay revenue to pay for some energy, insurance, utility and transportation costs.
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