HB 1082 revise the funding of K-12 education in the state.
State of South Dakota
|
EIGHTY-SECOND SESSION
LEGISLATIVE ASSEMBLY,
2007
|
695N0041
|
SENATE EDUCATION COMMITTEE ENGROSSED
NO.
HB 1082
-
02/27/2007
|
Introduced by:
Representatives Heineman, Deadrick, Halverson, and McLaughlin and
Senators Olson (Ed) and Knudson
|
FOR AN ACT ENTITLED, An Act to
revise the funding of K-12 education in the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
The Legislature finds, based upon a two-year study of school funding that was
undertaken by the Department of Education in 2005 at the direction of the Legislature and
included legislators, school officials, and business leaders, that in order to enhance the
educational opportunities available to all of our state's children and to provide those
opportunities in the most efficient and equitable manner, it is necessary to revise the current
school funding formula that was enacted in 1995.
Section
2.
That
§
13-6-92
be amended to read as follows:
13-6-92.
If two or more school districts consolidate
after July 1, 2001
, the new school
district is entitled to an additional
three
six
hundred dollars per
average daily membership as
defined in § 13-13-10.1
fall enrollment as defined in this Act
, up to a maximum of four hundred
average daily membership
fall enrollment
from each school district or
a prorated portion thereof
from a
partial school district as it existed prior to consolidation for the first year after
consolidation. If two or more school districts consolidate
after July 1, 2001
, the new school
district is entitled to an additional
two
four
hundred dollars per
average daily membership as
defined in § 13-13-10.1
fall enrollment as defined in this Act
, up to a maximum of four hundred
average daily membership
fall enrollment
from each school district or
a prorated portion thereof
from a
partial school district as it existed prior to consolidation for the second year after
consolidation. If two or more school districts consolidate
after July 1, 2001
, the new school
district is entitled to an additional
one
two
hundred dollars per
average daily membership as
defined in § 13-13-10.1
fall enrollment as defined in this Act
, up to a maximum of four hundred
average daily membership
fall enrollment
from each school district or
a prorated portion thereof
from a
partial school district as it existed prior to consolidation for the third year after
consolidation.
Section
3.
That chapter
13-13
be amended by adding thereto a NEW SECTION to read as
follows:
The consolidation incentives provided for in
§
§
13-13-1.4 to 13-13-1.7, inclusive, apply only
to those school districts whose consolidations are completed prior to July 1, 2007.
Section
4.
That
§
13-13-1.4
be amended to read as follows:
13-13-1.4.
If two or more school districts consolidate, for a period of four years after
consolidation, the
adjusted average daily membership
local need
for the newly formed district
shall be based upon the
average daily membership as defined in § 13-13-10.1
fall enrollment
as defined in this Act
of those school districts that have not previously benefited from this
section as they existed prior to consolidation. In years two to four, inclusive, after the
consolidation, the relationship between the
adjusted average daily membership
local need
and
average daily membership
fall enrollment
shall be proportional to the relationship that existed
for the first year.
Section
5.
That
§
13-13-1.5
be amended to read as follows:
13-13-1.5.
In years five to eight, inclusive, after the consolidation of two or more school
districts, the
adjusted average daily membership
local need
for the newly formed district shall
be calculated as follows:
(1)
Calculate
adjusted average daily membership
local need
pursuant to
§ 13-13-10.1
§
13-13-73
;
(2)
Notwithstanding the four-year time limit, calculate
adjusted average daily
membership
local need
pursuant to § 13-13-1.4;
(3)
Subtract the results of subdivision (1) from the results of subdivision (2);
(4)
Multiply the results of subdivision (3) by eighty percent in the fifth year, sixty
percent in the sixth year, forty percent in the seventh year, and twenty percent in the
eighth year;
(5)
Add the results of subdivision (1) and the results of subdivision (4).
Section
6.
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
"Fall enrollment," the
number of kindergarten through twelfth grade students 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 nonresident students who are in the care and custody of a state
agency and are attending a public school and students for whom tuition is
being paid pursuant to
§
13-28-42.1, plus the number of students for whom the
district pays tuition. No student who is partially enrolled in a school may be
counted in the fall enrollment for that school unless the partial enrollment
exceeds fifty percent. When computing state aid to education for a school
district under the foundation program pursuant to
§
13-13-73, the secretary of
the Department of Education shall use either the school district's fall
enrollment or the average of the school district's fall enrollment and the school
district's fall enrollment from the prior year, whichever is higher;
(1A) "Current fall enrollment," the number of kindergarten through twelfth grade students
enrolled in all schools operated by the school district on the last Friday of September
of the current school year minus the number of students for whom the district
receives tuition except nonresident students who are in the care and custody of a state
agency and are attending a public school and students for whom tuition is being paid
pursuant to
§
13-28-42.1, plus the number of students for whom the district pays
tuition. No student who is partially enrolled in a school may be counted in the current
fall enrollment for that school unless the partial enrollment exceeds fifty percent;
(2) "Small school adjustment," calculated as follows:
(a) For districts with a fall enrollment of two hundred or less, multiply 0.2 times
the fall enrollment and multiply the product times the per student allocation;
(b) For districts with a fall enrollment of greater than two hundred, but less than
six hundred, multiply the fall enrollment times negative 0.0005; add 0.3 to that
result; and multiply the sum obtained times the per student allocation
;
(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
is the sum of:
(a) The
per student allocation multiplied by the
adjusted average daily
membership
fall enrollment; and
(b) The small school adjustment or the sparsity small school adjustment, if
applicable, multiplied by the fall enrollment
;
(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
lesser of:
(a) The
general fund balance percentage as of June 30, 2000
; or
(b) The maximum allowable percentage for that particular fiscal year as stated in
this subsection.
For fiscal year 2008, the maximum allowable percentage is one hundred percent; for
fiscal year 2009, eighty percent; for fiscal year 2010, sixty percent; for fiscal year
2011, forty percent; for fiscal year 2012 and subsequent fiscal years, twenty-five
percent
. However, the general fund base percentage can never increase and can never
be less than
twenty
twenty-five
percent;
(10)
"Allowable general fund balance," the
general
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, revenue a school district has received
as compensation for being a sparse school district under the terms of §§ 13-13-78 and
13-13-79, inclusive; and any revenue in the general fund set aside for a noninsurable
judgment.
Section
7.
That chapter
13-13
be amended by adding thereto a NEW SECTION to read as
follows:
If a school district's current fall enrollment, as defined in this Act, increases by at least five
percent or by a minimum of twenty five students over the fall enrollment, that school district
shall receive a one-time payment equal to fifty percent of the per student allocation times the
number of students by which the current fall enrollment exceeds the fall enrollment. The
payment shall be made to the district prior to the first of December in the current school year.
Section
8.
That
§
13-13-73
be amended to read as follows:
13-13-73.
The secretary of the Department of Education shall compute state aid to education
for each school district under the foundation program according to the following calculations:
(1)
Determine each school district's
average daily membership
fall enrollment
;
(2)
To arrive at the local need per district:
(a)
Multiply the per student allocation by the
adjusted average daily membership
to arrive at the local need per district
fall enrollment;
(b) Multiply the small school adjustment if applicable, by the fall enrollment; and
(c) Add the product of subsection (a) to the product of subsection (b)
;
(3)
State aid is (a) local need minus local effort, or (b) zero if the calculation in (a) is a
negative number;
(4)
If the state aid appropriation for the general support of education is in excess of the
entitlement provided for in this section, the excess shall be used to fund any shortfall
of the appropriation as provided for in §§ 13-37-36.3 and 13-37-43. The secretary
shall report to the Governor by January seventh of each year, the amount of state aid
necessary to fully fund the general aid formula in the current year. If a shortfall in the
state aid appropriation for general education exists that cannot be covered by § 13-
37-45, the Governor shall inform the Legislature and provide a proposal to eliminate
the shortfall.
Section
9.
That
§
13-13-73.2
be amended to read as follows:
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)
the amount calculated by subtracting the
allowable general fund balance from the general fund balance. If the result is less
than zero, the result equals zero
.
Section
10.
That
§
13-13-73.3
be amended to read as follows:
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
fall enrollment
compared to the total
average daily membership
fall enrollment
of all districts eligible for this distribution.
Section
11.
That
§
13-13-78
be amended to read as follows:
13-13-78.
Terms used in § 13-13-79 mean:
(1)
"Sparse school district," a school district that meets each of the following criteria:
(a)
Has
an average daily membership
a fall enrollment
per square mile of 0.50 or
less;
(b)
Has
an average daily membership
a fall enrollment
of five hundred or less;
(c)
Has an area of four hundred square miles or more;
(d)
Has at least fifteen miles between its secondary attendance center or centers
and that of an adjoining district;
(e)
Operates a secondary attendance center;
(f)
Levies ad valorem taxes at the maximum rates allowed pursuant to § 10-12-42
or more; and
(g)
Has a general fund balance percentage of
thirty
twenty-five
percent or less
excluding revenue received from opting out of property tax limitations
pursuant to chapter 10-12;
(2)
"Sparsity
average daily membership
fall enrollment
,"
for sparse school districts with
a fall enrollment as defined in this Act of less than eighty-three or greater than two
hundred thirty-two, is
calculated as follows:
(a)
For sparse school districts with an adjusted average daily membership as
defined in subdivision 13-13-10.1(2) of less than one hundred or greater than
two hundred seventy-five, divide the average daily membership as defined in
subdivision 13-13-10.1(1)
Divide the fall enrollment as defined in this Act
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
fall enrollment
;
(3)
"Sparsity adjusted
average daily membership
fall enrollment
,"
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
for sparse school districts with a fall enrollment as defined in this Act
of at least eighty-three, but no more than two hundred thirty-two, subtract the fall
enrollment from two hundred thirty-two
.
Section
12.
That
§
13-13-79
be amended to read as follows:
13-13-79.
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 funds to sparse school districts by multiplying
either the sparsity
average daily membership calculation or the sparsity adjusted average daily membership
calculation in § 13-13-78
the result of the calculation in either subdivision 13-13-78(2) or
subdivision 13-13-78(3)
by the per student allocation as defined in § 13-13-10.1. However, no
sparse school district may receive a sparsity benefit in any year that exceeds
two hundred fifty
one hundred seventy-five
thousand dollars.
Section
13.
That
§
13-13-1.2
be amended to read as follows:
13-13-1.2.
Any records related to the reporting of
average daily membership
fall enrollment
of a public school district shall be subject to examination by the Department of Education at all
times.
Section
14.
That
§
13-13-1.3
be amended to read as follows:
13-13-1.3.
If, in the department's examination of
average daily membership
fall enrollment
,
it is determined that the data was overreported, the department shall recover the amount of state
aid overpaid as a result of the overreporting. Upon recovery of the overpayment, the department
shall deposit the overpayment into the state general fund. If the overreporting occurred with the
intent to increase the amount of state aid received by overreporting, the
individual
person
responsible for the overreporting may be charged with a Class 1 misdemeanor as provided in
§ 13-8-44, with the maximum penalty as defined in § 22-6-2.
Section
15.
That
§
13-13-1.8
be amended to read as follows:
13-13-1.8.
Students
No student
attending the Black Hills Forest High School in Lawrence
County may
not
be included by any school district in its
average daily membership
fall
enrollment
for purposes of state aid to education.
Section
16.
That
§
13-15-28
be amended to read as follows:
13-15-28.
Any school district that enters into contractual agreements pursuant to § 13-15-11
and sends over fifty percent of its resident students enrolled in grades for which it contracts to
an adjoining school district or districts located in South Dakota shall reorganize the school
district pursuant to chapter 13-6 within two years of the end of the school year. For the purposes
of this section, the number of students attending adjoining districts shall be based on
average
daily membership pursuant to subdivision 13-13-10.1(1)
fall enrollment as defined in this Act
.
This section does not apply to a school district located wholly within the boundaries of an Indian
reservation.
Section
17.
That
§
13-28-40
be amended to read as follows:
13-28-40.
An enrollment options program is established to enable any South Dakota
kindergarten through twelfth grade student to attend any public school that serves the student's
grade level in any South Dakota school district, subject to the provisions in §§ 13-28-40 to 13-
28-47, inclusive. For purposes of determining state aid to education as it relates to the provisions
of §§ 13-28-40 to 13-28-47, inclusive,
average daily membership as defined in § 13-13-10.1
fall enrollment as defined in this Act
is used to compute foundation aid and special education
average daily membership as defined in § 13-37-35 is used to determine funding for special
education.
Section
18.
That
§
13-28-49
be amended to read as follows:
13-28-49.
Notwithstanding the provisions of § 13-28-40, any student who enrolls in another
school district pursuant to the provisions contained in §§ 13-28-40 to 13-28-47, inclusive, from
a district that does not receive state aid pursuant to chapter 13-13 in the succeeding fiscal year
remains the financial obligation of the resident district. For each student, the resident district
shall pay tuition to the nonresident district in the succeeding fiscal year per the following
calculation:
(1)
Multiply
Determine
the nonresident district's
adjusted average daily membership
calculated pursuant to subdivision 13-13-10.1(2) by the per student allocation as
defined in subdivision 13-13-10.1(4)
local need pursuant to subdivision 13-13-73(2)
;
(2)
Divide the result of (1) by the nonresident district's
average daily membership
calculated pursuant to subdivision 13-13-10.1(1)
fall enrollment as defined in this
Act
;
(3)
Multiply the result of (2) by the number of days the student was enrolled in the
nonresident district;
(4)
Divide the result of (3) by the number of days the nonresident district was in session.
Section
19.
That
§
13-28A-7
be amended to read as follows:
13-28A-7.
For the purposes of state aid to education distributed pursuant to chapter 13-13,
any student sent to South Dakota from North Dakota is included in the receiving school district's
average daily membership
fall enrollment
.
Section
20.
That
§
13-28A-8
be amended to read as follows:
13-28A-8.
For the purposes of state aid to education distributed pursuant to chapter 13-13,
any student sent to North Dakota from South Dakota may not be included in the resident school
district's
average daily membership
fall enrollment
.
Section
21.
That
§
12-25-6.1
be amended to read as follows:
12-25-6.1.
The provisions of this chapter, except §§ 12-25-27 to 12-25-31, inclusive, do not
apply to any candidate or candidate election for judicial, municipal, or other governmental
subdivision offices. However, the governing body of any municipality or other governmental
subdivision may adopt an ordinance or resolution to make the provisions of chapter 12-25, with
or without amendments, applicable to municipal or other governmental subdivision elections.
The provisions of this chapter do apply to any candidate or candidate election for any county
office or school board seat in a district with
an average daily membership
a fall enrollment
in
excess of two thousand students during the previous academic year.
Section
22.
That
§
42-7B-48.1
be amended to read as follows:
42-7B-48.1.
Disbursements from the Gaming Commission fund shall be as set forth in § 42-
7B-48 until such time as the net municipal proceeds paid to the City of Deadwood equals six
million eight hundred thousand dollars for each year, and after payment of commission expenses
pursuant to subdivision 42-7B-48(2), and after payment of one hundred thousand dollars to the
State Historical Preservation Grant and Loan fund pursuant to subdivision 42-7B-48(4).
Thereafter, all remaining funds shall be distributed as follows:
(1)
Seventy percent to the state general fund;
(2)
Ten percent to be distributed to municipalities in Lawrence County, except the City
of Deadwood, pro rata according to their population;
(3)
Ten percent to be distributed to school districts, pro rata based upon the previous
year's
average daily membership
fall enrollment
, located in whole or in part, in
Lawrence County. For any school district located only partly in Lawrence County,
only that portion of the district's
average daily attendance
fall enrollment
which
represents students residing in Lawrence County shall be considered in calculating
the proration required by this subdivision; and
(4)
Ten percent to the City of Deadwood for deposit in the historic restoration and
preservation fund.
Section
23.
That
§
13-16-26
be amended to read as follows:
13-16-26.
All or any part of a surplus of any school district fund, except the capital outlay
fund provided by §§ 13-16-6 to 13-16-9, inclusive, and the special education fund provided by
§ 13-37-16 may be transferred to any other school district fund.
However, any
Only a school
district with a plan for reorganization that has been approved by the voters pursuant to
§
13-6-47
may transfer all or any part of a surplus in the capital outlay fund to the general fund. Any
unused portion of money that has been transferred into the special education fund may be
transferred from the special education fund within the current fiscal year to the fund from which
it originated. All or any part of any school district fund may be loaned to any other school
district fund for a term not to exceed twenty-four months.