HB 1204 creates the South Dakota school construction fund, administered by the Department of Education, to provide zero-interest loans to school districts for building or expanding school facilities. Loans cover up to 40% of a project's cost, with repayment over 20 years at 0% interest and no collateral required. Funds are allocated 30% to districts with 4,000+ students and 70% to other districts, beginning with a $1 transfer from the general fund (replenished by loan repayments). The bill also establishes reporting requirements for the Department of Education to a legislative committee.
Senate Bill 174 appropriates $5 million from the general fund to the South Dakota Department of Education to help cover school districts' operational costs, such as staffing and supplies. The funds will be distributed directly to school districts based on each district's 2026 fall enrollment relative to the state's total enrollment. Districts must use the funds for day-to-day operational expenses, not capital projects, and any unspent money by June 30, 2027, will revert to the state. This bill affects all public school districts in South Dakota through their 2026 enrollment figures.
This bill updates South Dakota's background check requirements for school employees. It requires criminal background investigations for technical college instructors and student teachers during initial hiring, while allowing multi-district employees to use existing checks (within 5 years) if districts share results with written consent. School districts must report terminations due to criminal convictions to the Department of Education within 10 days. The bill exempts event referees from background checks and clarifies that districts may refuse employment for certain serious offenses like sex crimes or violence.
This bill creates the "Building Opportunity Through Out-of-School Time Program" and establishes a dedicated state fund to support after-school and summer programs for students. The program fund, administered by the South Dakota Department of Education, provides grants to eligible providers (like school districts or qualified nonprofits) to cover staffing, materials, and transportation costs for evidence-based out-of-school time programming. Priority is given to programs serving under-served students, fostering community partnerships, and supplementing existing funding. The fund is supported by a new fee and state appropriations, with grants distributed annually based on applications submitted between August 1 and September 30.
HB 1137 allocates $40 million from state funds for the design and construction of a new athletic facility at the University of South Dakota. The facility will include an indoor track, practice areas, seating for 2,000 spectators, and supporting amenities like locker rooms and training spaces. The bill allows for cost adjustments up to 125% of the original estimate to account for inflation or regulatory changes, and declares an emergency to expedite the project. Unspent funds would revert per state procedures, and the project cannot create state debt or liens. The bill directly affects the University of South Dakota's athletic programs and facilities.
SB 205 revises drone registration fees in South Dakota, charging 1.5% of purchase price for agricultural drones and 2% for all other drones. The collected fees fund a new "drone aviation fund" administered by the Board of Technical Education to support drone training grants at state technical colleges. This bill directly affects drone owners (especially agricultural users) by changing their registration tax rates and creating a dedicated funding source for drone industry workforce development. The fund will receive all drone registration fees and interest, with expenditures requiring annual budget approval. The bill does not apply to small unmanned aircraft systems covered under federal regulations.
SB 225 directs that 4% of the interest earnings from South Dakota's unclaimed property trust fund (without touching the principal) be distributed annually to school districts starting in fiscal year 2026. The funds will be apportioned to school districts based on their student enrollment, following the existing method used for other school funding. This adds a new source of revenue for school districts through the trust fund's interest, calculated using the fund's market value as of December 31 each year. The bill modifies existing statutes to implement this distribution, ensuring the funds are added to the general fund before being allocated to schools under current apportionment rules.
HB 1251 creates two new state funds: the "target teacher salary supplement fund" (administered by the Department of Education) and the "community-based providers methodology supplement fund" (administered by the Department of Human Services). The bill directs that unspent state funds from the previous fiscal year - after a portion is placed in a budget reserve - be split equally (30% each) into these two new funds. These funds will directly support increases in teacher salaries and provider rates for community-based services, as specified in existing law. The transfers occur automatically each year through the state's budget process, with expenditures requiring annual legislative approval.
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 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.
