Changes to capital outlay will have to wait another year.

 

House Taxation committee members voted against House Bill 1141, which increases the cap on the Capital Outlay fund to $3,800, on a 10-2 vote.

 

The vote against HB 1141 came just days after Representatives defeated House Bill 1139, which repeals the $2,800 cap on the Capital Outlay fund and permits a school district to levy up to $3 per $1,000 of valuation, on the floor on a 33-35 vote.

 

Rep. John Lake, the bill’s prime sponsor, noted the bill was in response to changes made to the capital outlay fund during the 2016 legislative session, which established a 3 percent or inflation growth cap and implemented an alternative maximum capital outlay cap imposed on a per-student basis of $2,800 per-student.

 

“Another concession that was made was putting a cap on capital outlay,” Rep. Lake said. “It did leave a few different holes out there for some school districts.”

 

ASBSD supported the bill, as well as HB 1139.

 

“It’s providing financial flexibility in the capital outlay fund for local school boards,” ASBSD Director of Communications Tyler Pickner testified, adding that the “additional dollars” provided to school boards in the capital outlay fund would benefit them in their budgeting process.

 

S.D. Department of Education CFO Matt Flett called the bill “a property tax increase” and requested the committee keep the pieces of 2016’s education reform in place.

 

Rep. Lake disputed the idea of the bill being a tax increase.

 

“We’re not raising taxes,” Rep. Lake said. “We’re just letting the local school boards have a little more leeway.”

 

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