Education

HB 1098 adjusts South Dakota's special education funding formula by establishing annual per-student funding amounts for six disability levels (e.g., $7,650.45 for "level one" disabilities in 2025) that increase yearly based on inflation (using the Consumer Price Index or 3%, whichever is lower). It also requires school districts to reduce local tax levies if local revenue growth exceeds student need growth statewide. The bill directly affects South Dakota school districts (which receive the funding) and students with disabilities (who qualify for services based on their disability level). Key provisions include standardized funding rates per disability classification and a new $1.26 per $1,000 valuation local levy rate for 2026 and beyond.

HB 1168 creates a property tax credit for South Dakota homeowners who pay for qualifying K-12 education expenses for children aged 5-19. The credit covers tuition, school fees (including sports/fine arts), textbooks, tutoring, test fees, transportation, and educational technology. It limits the credit to $1,000 per year or 80% of the school district taxes owed. Homeowners must apply annually by June 1st with documentation from the school or alternative instruction provider.

HB 1205 amends South Dakota's formula for calculating state aid to school districts for general and special education funding. It updates key definitions, including how "fall enrollment" is calculated (subtracting certain tuition-receiving students and adding those for whom the district pays tuition) and revises the target teacher ratio factor based on district size. The bill also establishes a new method for calculating target teacher compensation, linking it to the consumer price index and requiring annual adjustments. This directly affects all South Dakota public school districts receiving state education funding.