There will be no special legislative session this month, which means schools will receive the two percent funding increase prescribed by state law on July 1.
“We will not be having a special (legislative) session in June,” Gov. Kristi Noem said at her press conference on Thursday (6/4), adding that her administration would “continue to reevaluate” where revenue collections were and speak with “legislative leaders” about the state’s economic future.
The legislature passed House Bill 1043, which sets the School District General Fund levy, target teacher salary and overhead rate for FY 2021, in March at the outset of the Coronavirus outbreak and Gov. Noem signed the bill into law at the end of March amid speculation of a special session being needed to deal with the economic fallout from the virus.
Revenue figures in March came in $8.2 million above projections with the year-to-date figures at the point more than $10 million ahead, but the figures flipped in April when revenue collection for the month was $18 million below projections and year-to-date were $5.5 million below projections. May’s figures were mildly ahead of projections, but what’s to come remains unknown.
Learn more about May’s revenue collection figures here.
At her June 4 press conference, Gov. Noem said “the biggest (economic) impact may not” be felt “for six months, maybe a year.”
For now, two percent is set to be provided to schools, as during her press conference on May 26, Gov. Noem said “we’re looking for the ability to continue to help our schools be funded at a level to which we committed.”
The two percent increase sets the target for statewide average teacher salaries to$51,367.47 and increases the overhead rate in the funding formula to 34.93 percent for next school year The bill also sets general fund levies for the commercial property levy at $6.682/thousand dollars of taxable valuation, for the ag levy at $1.443/thousand dollars of taxable valuation and for the owner-occupied levy at $3.229/thousand dollars of taxable valuation.
With the schools set to receive the two percent increase, they should still be wary of what’s to come to the state’s revenue collection figures.
“We’re in very uncertain times with the state’s economy and revenue collections,” ASBSD Executive Director Wade Pogany said. “I’d urge schools to be cautious when it comes to funding because this is a very fluid situation financially.”
“The state’s revenue collection may fluctuate from month-to-month and what state aid looks like in the future will be greatly affected.”
ASBSD will continue to provide updates to school district leaders on revenue collections and state aid. For additional updates on everything related to K-12 education, check the ASBSD Blog.