AMENDMENT FOR HOUSE EDUCATION COMMITTEE ENGROSSED BILL
1175cb
___________________ moved that HB 1175 be amended as follows:
On the House Education Committee engrossed bill, delete everything after the enacting clause
and insert:
"
Section 1. That
§
13-13-10.1
be amended to read as follows:
13-13-10.1.
Terms used in this chapter mean:
(1)
"Average daily membership," the average number of resident and nonresident
kindergarten through twelfth grade pupils enrolled in all schools operated by the school
district during the previous regular school year, minus average number of pupils for
whom the district receives tuition, except pupils described in subdivision (1A) and pupils
for whom tuition is being paid pursuant to § 13-28-42 and plus the average number of
pupils for whom the district pays tuition;
(1A)
Nonresident students who are in the care and custody of the Department of Social
Services, the Unified Judicial System, the Department of Corrections, or other state
agencies and are attending a public school may be included in the average daily
membership of the receiving district when enrolled in the receiving district. When
counting a student who meets these criteria in its general enrollment average daily
membership, the receiving district may begin the enrollment on the first day of
attendance. The district of residence prior to the custodial transfer may not include
students who meet these criteria in its general enrollment average daily membership after
the student ceases to attend school in the resident district;
(2)
"Adjusted average daily membership," calculated as follows:
(a)
For districts with an average daily membership of two hundred or less, multiply 1.2
times the average daily membership;
(b)
For districts with an average daily membership of less than six hundred, but greater
than two hundred, raise the average daily membership to the 0.8293 power and
multiply the result times 2.98;
(c)
For districts with an average daily membership of six hundred or more, multiply
1.0 times their average daily membership;
(3)
"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;
(4)
"Per student allocation," for school fiscal year 2006 is $4,237.72. Each school fiscal year
thereafter, the per student allocation is the previous fiscal year's per student allocation
increased by the index factor;
(5)
"Local need," the per student allocation multiplied by the adjusted average daily
membership;
(6)
"Local effort," the amount of ad valorem taxes generated in a school fiscal year by
applying the levies established pursuant to § 10-12-42
;
(7)
"General fund balance," the unreserved fund balance of the general fund, less general fund
exclusions plus, beginning with transfers made in fiscal year 2001, any transfers out of
the general fund for the previous school fiscal year;
(8)
"General fund balance percentage," is a school district's general fund balance divided by
the school district's total general fund expenditures for the previous school fiscal year, the
quotient expressed as a percent;
(9)
"General fund base percentage," is the general fund balance percentage as of June 30,
2000. However, the general fund base percentage can never increase and can never be less
than twenty percent;
(10)
"Allowable general fund balance," the fund base percentage multiplied by the district's
general fund expenditures in the previous school fiscal year;
(11)
"Imputed interest rate," the average prime rate for the preceding fiscal year minus 2.5
percentage points;
(12)
"General fund exclusions," revenue a school district has received from the imposition of
the excess tax levy pursuant to § 10-12-43; revenue a school district has received from
gifts, contributions, grants, or donations; revenue a school district has received under the
provisions of §§ 13-6-92 to 13-6-96, inclusive; and any revenue in the general fund set
aside for a noninsurable judgment
.
Section 2. That
§
13-13-73.2
be repealed.
13-13-73.2.
A school district's state aid for general education as calculated pursuant to § 13-13-
73 shall be reduced by the following calculation:
(1)
Subtract the allowable general fund balance from the general fund balance. If the result
is less than zero, (1) equals zero;
(2)
Determine the lower of the general fund base percentage or the general fund balance
percentage;
(3)
Subtract twenty percent (0.2) from the result of (2). If the result is less than zero, (3)
equals zero;
(4)
Multiply the result of (3) by the district's general fund expenditures in the previous school
fiscal year;
(5)
Multiply the result of (4) by the imputed interest rate;
(6)
Add the result of (1) and the result of (5).
Section 3. That
§
13-13-73.3
be repealed.
13-13-73.3.
The secretary of education shall determine the reduction in state aid to education
pursuant to § 13-13-73.2. The secretary of education shall distribute the amount of money so
determined to school districts that received state aid pursuant to chapter 13-13 on a pro rata basis
according to the district's average daily membership compared to the total average daily membership
of all districts eligible for this distribution.
Section 4. That
§
13-13-73.4
be repealed.
13-13-73.4.
The secretary of the Department of Education shall promulgate rules, pursuant to
chapter 1-26, that calculate exclusions for revenue received from opting out of the property tax
limitations such that all expenditures shall be credited to formula revenue and unreserved general
fund balance from the preceding fiscal year prior to any credits against opt-out revenue.
Section 5. That
§
13-13-76
be repealed.
13-13-76.
There is hereby created the Excess General Fund Oversight Board within the
Department of Education. The board shall consist of five members, appointed by the Governor. The
Excess General Fund Oversight Board may exempt a school district from the provisions of § 13-13-
73.2 if a school district can demonstrate to the Excess General Fund Oversight Board that its general
fund balance percentage is the result of special circumstances.
Section 6. There is hereby appropriated from the state
general
fund the sum of seven million five
hundred thousand dollars ($
7,500,000
), or so much thereof that may be necessary, to the twenty-first
century education fund which is hereby created in the Department of Education. The secretary of the
Department of Education shall annually distribute the proceeds from the fund to school districts
based on average daily membership as defined in subdivision 13-13-10.1(1) at the same time that
foundation program state aid is distributed to school districts pursuant to
§
§
13-13-10.1 to 13-13-41,
inclusive.
Section 7. The secretary of the Department of Education shall approve vouchers and the state
auditor shall draw warrants to pay expenditures authorized by this Act.
Section 8. It is the intent of the Legislature to appropriate additional funds to the twenty-first
century education fund in future years. The amounts the Legislature intends to appropriate are as
follows:
(1) For fiscal year 2008, the sum of fifteen million dollars ($15,000,000);
(2) For fiscal year 2009, the sum of twenty two million five hundred thousand dollars
($22,500,000);
(3) For fiscal year 2010, the sum of thirty million dollars ($30,000,000).
Section 9. For fiscal year 2011 and subsequent years, it is the intent of the Legislature that the
amount appropriated to the twenty-first century education fund shall equal the amount appropriated
to the fund for the most recent fiscal year increased by 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.
Section 10. School districts that meet adequate yearly progress in reading and math based on the
growth model established by the Department of Education shall receive funding from the twenty-first
century education fund according to the provisions of section 6 of this Act.
Section 11. Those school districts that fail to meet adequate yearly progress based on the growth
model may apply to the department for a grant to assist the district in meeting future academic
targets. In order to qualify for a grant, a school district shall submit to the department a school
district improvement plan outlining the steps the district will undertake to reach adequate yearly
progress, and the plan shall be approved by the secretary of education. The grants shall be awarded
from funds available in the twenty-first century education fund. However, no grant may be awarded
to a school district in an amount that exceeds what that school district would have received if it had
achieved adequate yearly progress.
Section 12. That
§
4-5-29.2
be amended to read as follows:
4-5-29.2.
Pursuant to S.D. Const., Art. XII, § 6, the state investment officer shall determine the
market value of the education enhancement trust fund as of December 31, 2003, and each calendar
year thereafter less the investment expenses transferred pursuant to § 4-5-30. The state investment
officer shall calculate an amount equal to
four
five
percent of that market value, without invading
principal, as eligible for distribution. For the purpose of this section, the term, principal, means the
sum of all contributions to the fund. Beginning with the distribution in fiscal year 2007, the market
value shall be determined by adding the market value of the trust fund at the end of the sixteen most
recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. Upon notice
of that amount by the state investment officer, the state treasurer shall transfer the amount from the
education enhancement trust fund to the state general fund as soon as practicable after July first of
the next fiscal year.
Section 13. On July first of each fiscal year, or as soon as practicable thereafter, the state
treasurer shall transfer from the state general fund an amount equal to one percent of the fair value
of the education enhancement trust fund to the sparse school district fund which is hereby created
in the state treasury. The purpose of the fund is to provide funding to sparse school districts pursuant
to this Act.
Section 14. There is hereby appropriated from the
sparse school district
fund the sum of two
million four hundred thousand dollars ($
2,400,000
), or so much thereof as may be necessary, to the
Department of Education for distribution to sparse school districts pursuant to this Act.
Section 15. Terms used in this Act mean:
(1) "Sparse school district," a school district that meets each of the following criteria:
(a) Has an average daily membership per square mile of 0.50 or less;
(b) Has an average daily membership of five hundred or less;
(c) Has an area of four hundred square miles or more;
(d) Has at least five miles between its secondary attendance center or centers and that
of an adjoining district;
(e) Operates a secondary attendance center; and
(f) Levies ad valorem taxes at the maximum rates allowed pursuant to
§
10-12-42 or
more;
(2) "Sparsity average daily membership," calculated as follows:
(a) For sparse school districts with an adjusted average daily membership as defined
in subdivision 13-13-10.1(2) of greater than two hundred seventy-five, divide the
average daily membership as defined in subdivision 13-13-10.1(1) by the area of
the school district in square miles;
(b) Multiply the quotient obtained in subsection (a) times negative 0.125;
(c) Add 0.0625 to the product obtained in subsection (b); and
(d) Multiply the sum obtained in subsection (c) times the average daily membership;
(3) "Sparsity adjusted average daily membership," calculated as follows: For any sparse
school district with an adjusted average daily membership as defined in subdivision 13-
13-10.1(2) of no less than one hundred, but no more than two hundred seventy-five, the
sparsity adjusted average daily membership is two hundred seventy-five.
Section 16. At the same time that foundation program state aid is distributed to school districts
pursuant to
§
§
13-13-10.1 to 13-13-41, inclusive, the secretary of the Department of Education shall
distribute the proceeds from the sparse school district fund to sparse school districts based on either
the sparsity average daily membership calculation or the sparsity adjusted average daily membership
calculation in section 15 of this Act. However, no sparse school district may receive a sparsity
benefit in any year that exceeds two hundred fifty thousand dollars."