An Act to suspend the required reduction in state aid resulting from school district general fund cash balances.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 13-13-73.5 be AMENDED.

13-13-73.5. Reduction of state aid by subtracting allowable general fund cash balance from lowest general fund monthly cash balance--Suspended.

Beginning on July 1, 2018, a school district's state aid for general education as calculated pursuant to § 13-13-73 shall be reduced by subtracting the allowable general fund cash balance from the lowest general fund monthly cash balance. If the result is less than zero, the reduction equals zero.

A school district created or reorganized after July 1, 2016, is exempt from the reduction provided by this section for a period of three years immediately following its creation.

This section is suspended from July 1, 2021, to June 30, 2024, inclusive, and its provisions are not applicable to the school funding formula during that period.