HB 1326 allocates state funding for the 2026-2027 fiscal year to cover ordinary expenses of the legislative, judicial, and executive branches, state institutions, public debt interest, and common schools. The bill establishes budget limits for various state agencies and departments, including the Governor's office, economic development initiatives, housing authority, and science and technology programs. Key provisions include reducing $20 million in federal grant authority for expiring Infrastructure Investment and Jobs Act broadband grants while maintaining funding for other economic development services. The legislation sets expenditure caps for each budget unit and allows agencies to use base funds to supplement line item changes, with conditions effective through June 30, 2027.
This bill requires South Dakota public schools to teach prenatal human growth and development in health or science classes using specific materials. It mandates that schools use resources recommended by the state Board of Education, including at least three minutes of high-definition ultrasound videos showing organ development or computer-generated animations of prenatal growth from fertilization to birth. The law prohibits using any materials from entities that perform, promote, or refer to abortion services. This directly affects K-12 public school curricula in South Dakota, altering required health/science content.
SB 106 modifies South Dakota's funding for special education by increasing the state's annual allocation for unforeseen costs. Starting July 1, 2026, $4.5 million must be set aside for extraordinary expenses in special education programs, rising annually by an inflation index starting July 1, 2027, with a maximum cap of $5.5 million per year. Unspent funds will not revert to the general state budget, ensuring they remain available for future special education needs. The bill directly affects school districts providing special education services to children with disabilities across South Dakota.
HB 1130 amends South Dakota school districts' capital outlay fund rules to allow new uses. It specifically permits districts to spend these funds on textbooks (§ 13-16-6(5)(b)), instructional software purchases or renewals (§ 13-16-6(6)), and warranties for capital assets (excluding supplies, § 13-16-6(5)(a)). The bill also clarifies that districts may use up to 15% of transportation contracts or mileage reimbursement costs from this fund. Additionally, it allows transferring up to 45% of annual capital fund revenues to the general fund, while maintaining that small purchases ($1,000 or less) must come from the general fund instead. This directly affects South Dakota public school districts managing their capital budgets.
This bill appropriates $5.2 million from the state general fund to construct a trades center at Lake Area Technical College, providing new classrooms, labs, and student services for technical training programs. The college must secure matching funds from non-state sources (gifts, grants, etc.) equal to the state appropriation before the funds are released. The legislature declared an emergency to expedite the project, which will not use bonds for completion and requires approval of expenditures by the Department of Education and state auditor. The center directly affects students and staff at Lake Area Technical College by expanding hands-on training facilities.
HB 1213 appropriates $2.5 million from the general fund to the South Dakota Department of Education for a statewide educator retention initiative. The bill provides grants to public school districts and accredited nonpublic schools to address retention challenges, using both quantitative and qualitative data to identify and resolve underlying issues. School districts must apply for funding, with grants covering program costs during fiscal years 2026-2029, and the Department may use up to 5% of the appropriation for administration. This initiative requires a comprehensive approach to support educators, with funds allocated based on approved applications and expiring June 30, 2029.
This bill reduces property taxes for homeowners by lowering the mill levy rate on owner-occupied single-family homes from $5.21 to $20.51 per $1,000 of taxable value (with the exact figure clarified in the bill text). It simultaneously raises the state sales tax from 4.2% to 4.7% for 2026-2027 and to 5% after 2027, and expands the gross receipts tax to cover more services like dry cleaning, beauty shops, and rentals. The revenue from these tax increases is explicitly allocated to replace lost school district property tax revenue and fund pay raises for state and school employees. The bill ensures school districts maintain their total funding levels under the new system.
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.
HB 1325 prohibits South Dakota's public universities (controlled by the Board of Regents) from requiring students to live in on-campus housing or buy meal plans after their first year of enrollment. This directly affects undergraduate students at institutions like the University of South Dakota and South Dakota State University. The bill removes mandatory requirements for housing and meal plans beyond a student's initial academic year. It does not change first-year housing or meal plan policies but gives returning students the choice to live off-campus or arrange their own meals. The law takes effect upon enactment.
HB 1131 amends how South Dakota school districts calculate their fall enrollment for state education funding. The bill specifically requires districts to exclude students residing in residential treatment facilities (when the facility operates the education program) from their enrollment count used in the funding formula. This change directly affects school districts serving students in such facilities, potentially altering their state funding amounts based on revised enrollment calculations. The amendment clarifies an existing definition within the state's education funding structure without changing other elements like teacher salary formulas or English learner adjustments.
