13-13-73. Calculation of state aid for each school district.
No later than July 1, 2016, a school district shall notify the secretary of education in writing as to whether the school district's state aid is to be calculated using the alternative local need calculation. If a school district chooses the alternative local need calculation, the school district shall notify the secretary in writing no later than July first of each subsequent fiscal year as to whether to continue to use the alternative local need calculation for that fiscal year. If a school district chooses not to use the alternative local need calculation, the school district may not use that calculation in any subsequent school year. The secretary of the Department of Education shall compute state aid to education for each school district according to the following calculations:
(1) For school districts not utilizing the alternative local need calculation, state aid is local need as defined in § 13-13-10.1 minus local effort, or zero if the calculation is a negative number;
(2) For school districts utilizing the alternative local need calculation, state aid is the alternative local need as defined in subdivision 13-13-10.1(12) minus local effort, or zero if the calculation is a negative number;
(3) If the state aid appropriation for the general support of education is in excess of the entitlement provided for in this section and the entitlement provided for in § 13-13-85, the excess shall be used to fund any shortfall of the appropriation as provided for in § 13-37-36.3. 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.
Source: SL 1995, ch 94, § 39; SL 1997, ch 98, § 11; SL 1997, ch 103, § 2; SL 2000, ch 84, § 6; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2007, ch 93, § 8; SL 2010, ch 84, § 2; SL 2011, ch 102, § 7; SL 2013, ch 7, § 38; SL 2015, ch 89, § 16; SL 2016, ch 83, § 9; SL 2021, ch 73, § 6.
13-13-73.1. Real property valuation of manufactured homes to be excluded from calculation.
The Department of Revenue shall exclude the real property valuation of manufactured homes, considered as real estate pursuant to § 10-4-2.4, and manufactured homes, converted to real estate after July 1, 1999, when computing local effort pursuant to §§ 13-13-10.1 and 13-37-35.1 for the purpose of the state aid to education formula. The county auditor shall also exclude such real estate value when computing the tax levy for school purposes. However, such manufactured homes shall continue to be subject to each tax levy.
Source: SL 1999, ch 83, § 1; SL 2004, ch 17, § 11; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
13-13-73.5. Reduction of state aid by subtracting allowable general fund cash balance from lowest general fund monthly cash balance.
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.
Source: SL 2016, ch 83, § 24.
13-13-73.6. Average teacher salary--Calculation--Required increase.
The Department of Education shall calculate the average teacher salary for each school district, based on data collected pursuant to §§ 13-3-51 and 13-8-47.
Beginning with fiscal year 2025 and every fiscal year thereafter, each school district must increase its average teacher compensation, as referenced in § 13-8-47, so that the cumulative increase in the average teacher compensation since fiscal year 2024 is greater than or equal to the cumulative percentage change in the target teacher salary since fiscal year 2024. A school district complies with this section if the district's average teacher compensation is at least ninety-seven percent of the average teacher compensation otherwise required by this section.
Source: SL 2016, ch 83, § 27; SL 2021, ch 73, § 18; SL 2022, ch 42, § 1; SL 2024, ch 53, § 3.
13-13-73.7. Legislative intent regarding increases in teacher compensation.
It is the intent of the Legislature that any money appropriated for teacher compensation using the education funding plan included in SL 2016, ch 83 be used to directly improve teacher recruiting and retention and that the school districts advance this goal by increasing starting teacher salaries and providing for the rapid acceleration of teacher salaries for those below the midpoint in that teacher's applicable pay scale.
Source: SL 2016, ch 83, § 28.
13-13-73.8. State minimum salary required--Definition.
Beginning July 1, 2026, each school district must pay each full-time equivalent teacher a salary at least equal to the state minimum salary.
For the purposes of this section, the term "state minimum salary" is forty-five thousand dollars for fiscal year 2025. For fiscal year 2026 and thereafter, the state minimum salary is calculated by increasing the previous year's state minimum salary by the percentage change in the target teacher salary from the previous fiscal year to the current fiscal year as adopted by the legislature.
Source: SL 2024, ch 53, § 4.
13-13-73.9. Required increase or minimum salary--Penalty--Waiver.
The Department of Education must decrease state aid to general education funding to the school district in the following fiscal year by five hundred dollars for each full-time equivalent teacher employed in the school district if:
(1) The school district does not increase the school district's average teacher compensation in accordance with § 13-13-73.6; or
(2) The school district does not pay each full-time equivalent teacher a salary at least equal to the state minimum salary as defined in § 13-13-73.8.
A school district may request a waiver from any penalty imposed under this section from the School Finance Accountability Board.
Source: SL 2024, ch 53, § 5.