AMENDMENT FOR PRINTED BILL
198cb
___________________ moved that SB 198 be amended as follows:
On the printed bill, delete everything after the enacting clause and insert:
"
Section 1. There are hereby established within the state treasury the one-time education adequacy
fund and the ongoing education adequacy fund. The commissioner of the Bureau of Finance and
Management shall transfer the proceeds of the property tax reduction fund to the one-time education
adequacy fund. In addition, on July first of each fiscal year or at such time that the prior fiscal year
general fund ending unobligated cash balance is determined, the commissioner of the Bureau of
Finance and Management shall transfer all prior year unobligated cash to the one-time education
adequacy fund. Proceeds from the ongoing education adequacy fund shall be used to fund
supplemental general school aid established in section 7 of this Act. If the proceeds are not sufficient
to fully fund the supplemental general school aid, proceeds from the one-time education adequacy
fund shall also be used for that purpose.
This section is repealed when the commissioner of the Bureau of Finance and Management
determines that the ongoing education adequacy fund is sufficient to provide funding to each school
district in an amount equal to the supplemental base allotment as defined in section 8 of this Act per
adjusted average daily membership as defined in subdivision 13-13-10.1(2), and any money
remaining in the one-time education adequacy fund at that time shall revert to the property tax
reduction fund.
Section 2. On July 1, 2006, or as soon thereafter as moneys are available, the commissioner of
the Bureau of Finance and Management shall transfer nineteen million eight hundred eighty-seven
thousand six hundred thirty dollars ($19,887,630) from the railroad trust fund to the one-time
education adequacy fund.
Section 3. That
§
4-7-32
be amended to read as follows:
4-7-32.
On
When the commissioner of the Bureau of Finance and Management determines that
the ongoing education adequacy fund established in section 1 of this Act is sufficient to provide
funding to each school district in an amount equal to the supplemental base allotment as defined in
section 8 of this Act per adjusted average daily membership as defined in subdivision 13-13-10.1(2)
and on
July first of each fiscal year
thereafter
or at such time that the prior fiscal year general fund
ending unobligated cash balance is determined, the commissioner
of the Bureau of Finance
and
Management
shall transfer all prior year unobligated cash up to an amount equal to ten percent of
the general fund appropriations from the general appropriation act for the prior fiscal year into the
budget reserve fund. In no event shall the cash balance in the budget reserve fund be greater than ten
percent of the general fund appropriations from the general appropriation act for the prior fiscal year.
Expenditures out of the budget reserve fund shall only be by special appropriation of the
Legislature and shall only redress such unforeseen expenditure obligations or such unforeseen
revenue shortfalls as may constitute an emergency pursuant to S.D. Const., Art. III, § 1.
Section 4. That
§
4-7-39
be amended to read as follows:
4-7-39.
The
When the commissioner of the Bureau of Finance and Management determines that
the ongoing education adequacy fund established in section 1 of this Act is sufficient to provide
funding to school districts in an amount equal to the supplemental base allotment as defined in
section 8 of this Act per adjusted average daily membership as defined in subdivision 13-13-10.1(2),
the
commissioner
of the Bureau of Finance and Management
shall transfer any unobligated cash
remaining after the transfer into the budget reserve fund as required by § 4-7-32 into the property tax
reduction fund if the amount in the property tax reduction fund does not exceed fifteen percent of
the general fund appropriations in the General Appropriations Act for the previous fiscal year.
Section 5. That chapter
4-7
be amended by adding thereto a NEW SECTION to read as follows:
For the period beginning on July 1, 2007 and ending when the commissioner of the Bureau of
Finance and Management determines that the ongoing education adequacy fund established in
section 1 of this Act is sufficient to provide funding to each school district in an amount equal to the
supplemental base allotment as defined in section 8 of this Act per adjusted average daily
membership as defined in subdivision 13-13-10.1(2), the total general fund moneys appropriated by
the general appropriations act and any special appropriations may not increase from the total general
fund moneys appropriated by the general appropriations act and any special appropriations of the
most recent fiscal year by more than one-half percent plus the index factor as defined in subdivision
13-13-10.1(3). If, during this period of time, the general fund revenues for a fiscal year exceed the
allowable increase, the revenue exceeding the allowable increase shall be transferred by the
commissioner of the Bureau of Finance and Management to the ongoing education adequacy fund.
However, the proceeds from any tax or tax increase enacted on or after July 1, 2007 shall be
excluded from this calculation, and those revenues may be appropriated through the general
appropriations act even if they are in excess of the allowable increase. In addition, any moneys used
to provide medical services pursuant to chapter 28-6 shall also be excluded from this calculation.
Section 6. That
§
10-13-44
be amended to read as follows:
10-13-44.
The property tax reduction fund is hereby created in the state treasury.
The
When the
commissioner of the Bureau of Finance and Management determines that the ongoing education
adequacy fund established in section 1 of this Act is sufficient to provide funding to each school
district in an amount equal to the supplemental base allotment as defined in section 8 of this Act per
adjusted average daily membership as defined in subdivision 13-13-10.1(2), the
Department of
Revenue and Regulation shall distribute any money appropriated to the fund.
Effective January 1,
1996, through December 31, 1996, the State of South Dakota may remit tax credit payments on a
monthly basis for eligible property taxpayers on or about the last day of every month. Tax credit
payments shall be sent to counties based upon information received from the counties pursuant to
§ 10-13-43. In fiscal year 1997 and each year thereafter,
the
The
commissioner of finance and
management may transfer moneys available from the property tax reduction fund to the general fund
necessary to provide property tax relief through state aid to education.
Section 7. That chapter
13-13
be amended by adding thereto a NEW SECTION to read as
follows:
For the period beginning on July 1, 2006 and ending when the commissioner of the Bureau of
Finance and Management determines that the ongoing education adequacy fund established in
section 1 of this Act is sufficient to provide funding to each school district in an amount equal to the
supplemental base allotment defined in section 8 of this Act per adjusted average daily membership,
local school districts, in addition to receiving general school aid distributed pursuant to
§
§
13-13-
10.1 to 13-13-41, inclusive, shall also receive supplemental general school aid. General funds
appropriated for supplemental general school aid pursuant to this section may not be calculated in
or subject to the spending limitations set forth in section 5 of this Act.
Section 8. That chapter
13-13
be amended by adding thereto a NEW SECTION to read as
follows:
Supplemental general school aid pursuant to section 7 of this Act shall be distributed to local
school districts as follows:
(1) In fiscal year 2007, each school district shall receive a supplemental payment per average
daily membership that is equal to twenty percent of the supplemental base allotment;
(2) In fiscal year 2008, each school district shall receive a supplemental payment per average
daily membership that is equal to forty percent of the supplemental base allotment;
(3) In fiscal year 2009, each school district shall receive a supplemental payment per average
daily membership that is equal to sixty percent of the supplemental base allotment;
(4) In fiscal year 2010, each school district shall receive a supplemental payment per average
daily membership that is equal to eighty percent of the supplemental base allotment; and
(5) In fiscal year 2011, each school district shall receive a supplemental payment per average
daily membership that is equal to the supplemental base allotment.
For purposes of this section, the supplemental base allotment equals $643.18 in fiscal year 2007
and is the previous year's supplemental base allotment increased by the index factor in subsequent
years. The index factor is defined in subdivision 13-13-10.1(3).
Section 9. 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
three percent
;
(4)
"Per student allocation," for
the first
school fiscal year
2006 is $4,237.72
following the
effective date of this section, it is the previous fiscal year's per student allocation increased
by the index factor plus the supplemental base allotment as defined in section 8 of this
Act
. 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.
"