Education

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 218 establishes a legal framework for charter schools in South Dakota. It defines charter schools as public schools operating under contracts with school districts or the state education department, granting them exemptions from most state education laws while requiring compliance with civil rights, health/safety rules, and standardized testing. The bill mandates annual performance reporting to the state, outlines application requirements for nonprofit organizers (including community support and financial plans), and specifies that charter schools must serve grades K-12 nonsectarianly without religious instruction. This directly affects school districts (as authorizing entities), nonprofit organizers seeking to open charter schools, and students enrolled in these schools.

Senate Bill 97 adjusts property tax revenue limits for South Dakota taxing districts and school districts. For school districts, it changes the annual revenue increase cap from "lesser of 3% or index factor" to a flat 3% over the prior year's revenue, effective 2021. For general taxing districts, it adds a specific 3.5% cap on revenue increases above normal limits for taxes payable in 2027-2031. The bill also clarifies that property improvements to owner-occupied homes increasing value by 40% or less do not count toward the revenue limit. These changes directly affect local governments and school districts managing property tax revenue.

SB 157 amends South Dakota's school funding formula to require using an *average fall enrollment* (instead of enrollment on a single date) when calculating a school district's "local need" for state funding. This directly affects all public school districts in South Dakota by changing how their student enrollment count is determined for funding calculations. The bill replaces the current method - using enrollment on the last Friday of September - with an average, which could stabilize funding by smoothing out seasonal enrollment fluctuations. The change applies specifically to the calculation of "local need" under § 13-13-10.1(32) in the education funding code.