AMENDMENT FOR SENATE APPROPRIATIONS COMMITTEE ENGROSSED BILL
15ci
___________________ moved that SB 15 be amended as follows:
On page 3, line 2, of the Senate Appropriations Committee engrossed bill, delete "16" and insert
"1".
On page 3, after line 4, insert:
" Section 6. That § 13-37-2.1 be amended to read as follows:
13-37-2.1. As used in this chapter, the term, surrogate parent, means any individual certified by
the Department of Education assigned by the district to act in place of the parent of a child in need
of special education when the school district cannot identify or locate the parent or the child is a
ward of the state.
Section 7. That § 13-37-16 be amended to read as follows:
13-37-16. For taxes payable in 1997 2014, and each year thereafter, the school board shall levy
no more than one dollar and forty fifty-five and two tenths cents per thousand dollars of taxable
valuation, as a special levy in addition to all other levies authorized by law for the amount so
determined to be necessary, and such levy shall be spread against all of the taxable property of the
district. The proceeds derived from such levy shall constitute a school district special education fund
of the district for the payment of costs for the special education of all children in need of special
education or special education and related services who reside within the district pursuant to the
provisions of §§ 13-37-8.2 to 13-37-8.10, inclusive. The levy in this section shall be based on
valuations such that the median level of assessment represents 85% of market value as determined
by the Department of Revenue. The total amount of taxes that would be generated at the levy
pursuant to this section shall be considered local effort. Money in the special education fund may
be expended for the purchase or lease of any assistive technology that is directly related to special
education and specified in a student's individualized education plan. This section does not apply to
real property improvements.
For taxes payable in 2011, the total amount of revenue payable from the levy provided in this
section may not increase more than the lesser of three percent or the index factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been generated for the taxes payable
in 2010. After applying the index factor, a school district may increase the revenue payable from
taxes on real property above the limitations provided by this section by the percentage increase of
value resulting from any improvements or change in use of real property, annexation, minor
boundary changes, and any adjustments in taxation of real property separately classified and subject
to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the same as property of equal value.
Any school district created or reorganized after January 1, 2009, is exempt from the limitation
provided by this section for a period of two years immediately following its creation.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of revenue payable from the
levy provided in this section may not increase more than the lesser of three percent or the index
factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been
generated for the taxes payable in 2010 plus any unused index factor from the previous years. After
applying the index factor, a school district may increase the revenue payable from taxes on real
property above the limitations provided by this section by the percentage increase of value resulting
from any improvements or change in use of real property, annexation, minor boundary changes, and
any adjustments in taxation of real property separately classified and subject to statutory adjustments
and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed
the same as property of equal value.
For taxes payable in 2011, 2012, 2013, 2014, and 2015, the levy limitation of one dollar and forty
cents per thousand dollars of taxable valuation does not apply to any school district.
Section 8. That § 13-37-16.2 be amended to read as follows:
13-37-16.2. If local effort increases on a statewide aggregate basis by a greater percentage than
local need on a statewide aggregate basis from any one year to the next, for the following year, the
levy specified in subdivision 13-37-35.1(19) 13-37-35.1(7) shall be reduced proportionally so that
the percentage increase in local effort on a statewide aggregate basis equals the percentage increase
in need on a statewide aggregate basis.
Section 9. That § 13-37-16.3 be amended to read as follows:
13-37-16.3. Any adjustments in the levy specified in subdivision 13-37-35.1(19) 13-37-35.1(7)
made pursuant to § 13-37-16.2 shall be based on maintaining the relationship between statewide
local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in
which the adjustment is made. However, for fiscal year 2014, and each year thereafter, if the levy
specified in subdivision 13-37-35.1(7) is not adjusted to maintain this relationship, the funding
allocation for each disability level as defined in § 13-37-35.1 shall be reduced proportionally to
maintain the relationship between statewide local effort as a percentage of statewide local need.
Section 10. That § 13-37-18 be amended to read as follows:
13-37-18. Special education costs and statistical information shall be included in the annual
application for state aid financial report as provided in § 13-13-37.
Section 11. That § 13-37-35.1 be amended to read as follows:
13-37-35.1. Terms used in chapter 13-37 mean:
(1) "Level one disability," a mild disability;
(2) "Level two disability," cognitive disability or emotional disorder;
(3) "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness,
orthopedic impairment, or traumatic brain injury;
(4) "Level four disability," autism;
(5) "Level five disability," multiple disabilities;
(5A) "Level six disability," prolonged assistance;
(6) "Index factor," is the annual percentage change in the consumer price index for urban
wage earners and clerical workers as computed by the Bureau of Labor Statistics of the
United States Department of Labor for the year before the year immediately preceding the
year of adjustment or three percent, whichever is less;
(7) "Local effort," shall be calculated for taxes payable in
2011 and shall be the amount of
revenue that could have been generated for the taxes payable in 2010 using a special
education levy of one dollar and twenty cents per one thousand dollars of valuation
increased by the lesser of three percent or the index factor, as defined in § 10-13-38, plus
a percentage increase of value resulting from any improvements or change in use of real
property, annexation, minor boundary changes, and any adjustments in taxation of real
property separately classified and subject to statutory adjustments and reductions under
chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the same as
property of equal value.
For taxes payable in 2012, 2013, 2014, and 2015, the total amount of local effort shall be
increased by the lesser of three percent or the index factor, established pursuant to § 10-13-38 plus a percentage increase of value resulting from any improvements or change in
use of real property, annexation, minor boundary changes, and any adjustments in taxation
of real property separately classified and subject to statutory adjustments and reductions
under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the
same as property of equal value 2014 and thereafter using a special education levy of one
dollar and thirty-five and two tenths cents per one thousand dollars of valuation;
(8) "Allocation for a student with a level one disability," for the school fiscal year beginning
July 1, 2012, is $4,525. For each school year thereafter, the allocation for a student with
a level one disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(9) "Allocation for a student with a level two disability," for the school fiscal year beginning
July 1, 2012, is $11,124. For each school year thereafter, the allocation for a student with
a level two disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(10) "Allocation for a student with a level three disability," for the school fiscal year beginning
July 1, 2012, is $14,788. For each school year thereafter, the allocation for a student with
a level three disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(11) "Allocation for a student with a level four disability," for the school fiscal year beginning
July 1, 2012, is $13,204. For each school year thereafter, the allocation for a student with
a level four disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(12) "Allocation for a student with a level five disability," for the school fiscal year beginning
July 1, 2012, is $19,993. For each school year thereafter, the allocation for a student with
a level five disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(12A) "Allocation for a student with a level six disability," for the school fiscal year beginning
July 1, 2012, is $7,205. For each school year thereafter, the allocation for a student with
a level six disability shall be the previous fiscal year's allocation for such child increased
by the lesser of the index factor or three percent;
(13) "Child count," is the number of students in need of special education or special education
and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education in accordance with rules
promulgated pursuant to § 13-37-1.1;
(14) "Fall enrollment," the number of kindergarten through twelfth grade pupils enrolled in all
schools operated by the school district on the last Friday of September of the previous
school year minus the number of students for whom the district receives tuition, except
any nonresident student who is in the care and custody of a state agency and is attending
a public school and any student for whom tuition is being paid pursuant to § 13-28-42.1,
plus the number of students for whom the district pays tuition;
(15) "Nonpublic school," a sectarian organization or entity which is accredited by the secretary
of education for the purpose of instructing children of compulsory school age. This
definition excludes any school that receives a majority of its revenues from public funds;
(16) "Nonpublic fall enrollment," until June 30, 2008, the number of children under age
sixteen, and beginning July 1, 2009, the number of children under age eighteen, who are
approved for alternative instruction pursuant to § 13-27-2 on the last Friday of September
of the previous school year plus:
(a) For nonpublic schools located within the boundaries of a public school district with
a fall enrollment of six hundred or more on the last Friday of September of the
previous school year, the number of kindergarten through twelfth grade pupils
enrolled on the last Friday of September of the previous regular school year in all
nonpublic schools located within the boundaries of the public school district;
(b) For nonpublic schools located within the boundaries of a public school district with
a fall enrollment of less than six hundred on the last Friday of September of the
previous school year, the number of resident kindergarten through twelfth grade
pupils enrolled on the last Friday of September of the previous school year in all
nonpublic schools located within the State of South Dakota;
(17) "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;
(18) "Local need," an amount to be determined as follows:
(a) Multiply the special education fall enrollment by 0.1004 and multiply the result by
the allocation for a student with a level one disability;
(b) Multiply the number of students having a level two disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level two disability;
(c) Multiply the number of students having a level three disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level three disability;
(d) Multiply the number of students having a level four disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level four disability;
(e) Multiply the number of students having a level five disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level five disability;
(f) Multiply the number of students having a level six disability as reported on the
child count for the previous school fiscal year by the allocation for a student with
a level six disability;
(g) When calculating local need at the statewide level, include the amount set aside for
extraordinary costs defined in § 13-37-40;
(h) Sum the results of (a) through (f) to (g), inclusive;
(19) "Effort factor,"
for taxes payable in 2011, 2012, 2013, 2014, and 2015, the effort factor
is the amount of taxes payable for the year divided by the amount of local effort as
calculated in subdivision (7) the school district's special education tax levy in dollars per
thousand divided by $1.352. The maximum effort factor is 1.0.
Section 12. That § 13-37-36.1 be amended to read as follows:
13-37-36.1. To establish the school district special education fund statutory carryover excluding
federal funds, the following calculations shall be performed:
(1) Divide the total federal special education revenue by the total special education revenues;
and
(2) Multiply the federal special education percentage calculated in (1) times the total special
education fund balance; and
(3) Deduct the amount of federal revenue calculated in (2) from the special education fund
balance
, deduct from the total ending fund balance the amount of Title VIII of the
Elementary and Secondary Education Act funds receipted or transferred to the special
education fund.
Section 13. That § 13-37-40 be amended to read as follows:
13-37-40. Subject to the limitation in § 13-37-42, the secretary of the Department of Education
shall, for school fiscal year 1999 2014 and each year thereafter, set aside 5.75% four million dollars
of the state aid to districts for special education appropriation for extraordinary expenses incurred
in providing special education programs or services to one or more children with disabilities, with
expenditures to be made as recommended by an oversight board and approved by the secretary of
the Department of Education. Any funds not expended or obligated pursuant to this section shall not
be subject to reversion pursuant to § 4-8-19. The maximum amount not subject to reversion is equal
to 5.75% of the state special education appropriation. The total amount set aside for extraordinary
expenses each fiscal year plus the total amount not reverted from previous fiscal years may not
exceed five million five hundred thousand dollars.
The amount appropriated for extraordinary expenses shall be recalculated at the same time as the
amount of the allocations for disability levels as provided in § 13-37-35.2.
Section 14. That § 13-37-40.1 be amended to read as follows:
13-37-40.1. A school district is not eligible for funding from the money set aside in §§ 13-37-38
to 13-37-40, inclusive, unless the school district certifies to the secretary of education that its ending
special education fund balance will not exceed five ten percent of its special education expenditures
for the current fiscal year.
Section 15. That § 13-37-44 be amended to read as follows:
13-37-44. A school district's state aid for special education as calculated pursuant to § 13-37-36.1
or 13-37-51 shall be reduced by the amount which its ending special education fund balance exceeds
twenty twenty-five percent of its special education expenditures for the prior fiscal year or fifty one
hundred thousand dollars, whichever is greater, if the school district did not receive money set aside
in § 13-37-40 during the prior fiscal year; or the amount which its ending special education fund
balance exceeds five ten percent of its special education expenditures for the prior fiscal year if the
school district received money set aside in §§ 13-37-38 to 13-37-40, inclusive, during the prior fiscal
year.
Section 16. That § 13-37-48.1 be repealed.
13-37-48.1. In addition to the purposes specified in § 13-37-40, money set aside pursuant to § 13-37-40 may be used by the Department of Education to establish and maintain a program to assist
school districts with legal matters relating to special education, to employ personnel to audit school
districts for compliance with the provisions of §§ 13-37-36.1 to 13-37-52, to establish and maintain
state protocols to assist school districts in developing individualized education plans, to support
activities under Part C of the Individuals with Disabilities Education Act, Infants and Toddlers with
Disabilities, or to purchase assistive technology for students with a level two, three, four, or five
disability.
Any approved K-12 application under the extraordinary cost fund must be funded prior to
funding the Part C requests.
Section 17. That § 13-37-51 be repealed.
13-37-51. For the transition period from school fiscal year 2000 through school fiscal year 2003,
state aid for special education shall be determined according to the following calculations:
(1) Multiply local need of a school district by 0.96 in school fiscal year 2000, 0.97 in school
fiscal year 2001, 0.98 in school fiscal year 2002, and 0.99 in school fiscal year 2003;
(2) After making the adjustment to local need pursuant to subdivision (1) of this section,
calculate state aid for special education pursuant to § 13-37-36.1;
(3) Subtract the result of subdivision (2) from the amount of state aid received pursuant to
§ 13-37-36.3 or 13-37-43 in school fiscal year 1999;
(4) Multiply the result of subdivision (3) by 0.80 in school fiscal year 2000, 0.60 in school
fiscal year 2001, 0.40 in school fiscal year 2002, and 0.20 in school fiscal year 2003;
(5) Add the result of subdivision (2) to the result of subdivision (4);
(6) State aid for special education is the greater of the result of subdivision (2) or the result
of subdivision (5).
Section 18. That § 13-37-53 be repealed.
13-37-53. If the parents or guardian of a child assigned to and enrolled in an out of district
special education residential or tuition day program move to another South Dakota school district
and that school district provides special education services to the child, the Department of Education
shall allocate any state aid to special education attributable to the child received or scheduled to be
received by the resident school district as defined by § 13-28-9.1 to the school district to which the
parents or guardian have moved for the period of time that the resident school district is not
providing special education services to the child. For the purposes of §§ 13-28-9.1 and 13-37-54, an
approved special education program includes out-of-district residential programs and tuition day
programs.
Section 19. That § 13-37-54 be amended to read as follows:
13-37-54. The Department of Education may promulgate rules pursuant to chapter 1-26 to
provide for the reallocation of state aid to special education as provided for in §§ § 13-28-9.1 and
13-37-53.
Section 20. That § 13-16-7.1 be amended to read as follows:
13-16-7.1. For taxes payable in 2011, 2012, 2013, 2014, and 2015, the provisions of §§ 13-10-6,
and 13-16-7, 13-37-16, and 13-37-35.1 that limit the maximum amount of revenue that may be
generated by the pension, and capital outlay, and special education tax levies do not apply to any
school district that has less than a ten percent change in the total taxable valuation from the previous
year of all real property in the school district, not including the increase of value resulting from any
improvements or change in use of real property. ".