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.
HB 1249 modifies the process for school districts to request waivers of financial penalties under South Dakota law. It requires the School Finance Accountability Board to create specific rules for how districts can apply for waivers, including documentation needed to prove "special circumstances" (like retirement impacts on cash balances). The bill also adds that waiver conditions must include maintaining cash balance requirements for three years or meeting teacher pay standards for three years, with penalties for noncompliance. These changes directly affect school districts facing financial penalties under Sections 13-13-73.5, 13-13-73.6, or 13-13-73.8. The bill clarifies the board’s role in reviewing waiver requests and the Joint Committee’s authority to approve or amend them.
HB 1051 revises South Dakota school districts' property tax limits and updates state funding formulas. It sets new maximum tax rates: $4.22 per $1,000 of property value for general funds, $1.13 for agricultural land, and $2.51 for owner-occupied homes, all based on valuations at 85% of market value. The bill also changes how school enrollment is calculated for state aid, clarifying that students in state custody (e.g., foster care) count toward enrollment and adding rules for tuition payments. These changes directly affect all South Dakota public school districts by altering their tax capacity and state funding calculations.
SB 79 appropriates $6 million from South Dakota's general fund to build an advanced manufacturing lab and classrooms at Southeast Technical College. The college must first secure $18 million in outside funding (gifts, grants, etc.) before the state funds are released, with no bonds allowed for the project. The bill declares an emergency to expedite the construction, requiring the state auditor to pay for approved expenses. This directly affects Southeast Technical College students, faculty, and local manufacturing industry partners by expanding hands-on training facilities. The funding is conditional on the college meeting its financial match requirement.
HB 1089 modifies how South Dakota distributes severance tax revenue from precious metals mining. It changes the rules for permits issued on or after July 1, 2026: 80% of the tax revenue goes to the state general fund, while 20% is sent to the county where mining occurs. Unlike previous rules, this 20% county share cannot be reduced if a mining company is acquired. The bill also maintains that revenue from mining on state-owned land must go to the common school permanent fund. This directly affects new mining permit holders after 2026 and the counties where they operate.
HB 1082 requires South Dakota school districts to provide free or reduced-price meals to eligible students without charging them, as defined by federal programs (National School Lunch Program and School Breakfast Program) starting January 1, 2026. The bill mandates that the South Dakota Department of Education reimburse school districts for costs incurred on these meals, after subtracting any federal reimbursement received. This directly affects school districts serving students qualifying for federal meal programs and ensures state funding covers the gap between federal support and actual meal costs. The law amends Section 13-35-2 of South Dakota law to clarify these reimbursement parameters.
HB 1244 repeals South Dakota’s special donations fund (created under § 13-66-3) and appropriates $500,000 from the general fund to the Department of Education. This grant supports the Jobs for America's Graduates-South Dakota program by providing financial assistance to school districts and accredited nonpublic schools implementing the initiative. The funds must match private donations or federal grants for program operations and cannot be added to an endowment. It directly affects schools participating in the JAG program and transfers existing funds from the repealed special donations fund into the general fund. The bill takes effect June 30, 2026.
SB 223 modifies South Dakota's process for school districts to refer excess tax levies to voter approval. It changes the petition signature requirement from a flat 50 voters to "at least five percent of the registered voters" in the school district. The bill also adjusts notice rules, waiving newspaper publication requirements if the district mails the resolution to all property taxpayers within 20 days. This affects school districts seeking voter input on tax increases and directly impacts local taxpayers who may petition to refer levy decisions.
SB 116 appropriates $13.33 million for the design and construction of an indoor athletic facility at Dakota State University's Beacom PREMIER Complex in Madison. It directly affects Dakota State University's athletic programs and campus infrastructure. The bill authorizes the Board of Regents to use the funds for the project, including related services like utilities and landscaping, and allows adjustments for inflation (capped at 125% of the original estimate). It also permits accepting additional funds from federal sources or donations into a dedicated project fund, while declaring an emergency to expedite the funding. The facility will support athletic practice and competition, with no state liability for related expenses.
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.
