South DakotaState board may waive school aid cuts or penalties for districts
The School Finance Accountability Board may waive certain school district aid cuts or penalties when special circumstances caused the problem, and it must consider employee retirements in its waiver rules.
What it does
A school district may seek a waiver of an aid reduction or penalty if special circumstances caused the problem. The board may require the district to meet conditions for at least three years.
The board must set rules for waiver requests and decisions, including how employee retirements affect the district.
Argument forA district facing special circumstances could ask the board to waive an aid cut or penalty, which may help it manage an unusual financial or staffing strain.
Argument againstA district that receives a waiver could face the original penalty if it fails to meet the board’s conditions during the three-year period.
More detail
The School Finance Accountability Board may waive a school district’s aid reduction or penalty. This applies to school districts subject to state aid reductions for high cash balances or penalties for failing to meet teacher compensation or minimum salary requirements. For an aid reduction, the district must show that special circumstances caused its lowest monthly cash balance to exceed the allowed balance. For a penalty, the district must show that special circumstances caused its failure to meet teacher pay requirements. The board may require the district to meet financial or teacher pay conditions for at least three years. It may cancel the waiver and impose the penalty if the district fails to meet those conditions during that period. If the board sets conditions, they must last at least three years; it may cancel the waiver if the district fails to meet them during that period.
The School Finance Accountability Board must make rules for waiver requests and decisions. The rules apply to school districts requesting a waiver under this section. The rules must explain how districts can request a waiver and what factors the board may consider. The factors must address how employee retirements affect the district.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Signed by the Governor Larry Rhoden on 2026-03-30 H.J. 580Became Law
- Mar 12Delivered to the Governor on 2026-03-12 H.J. 562To Governor
- Mar 11Signed by the President S.J. 526Passed Senate
- Mar 10Signed by the Speaker H.J. 553Passed House
- Mar 9Senate Do Pass Amended , Passed, YEAS 33, NAYS 0 S.J. 497
- Vote recorded Do Pass Amended. Result: pass.Upper
- Mar 5Education Do Pass , Passed, YEAS 5, NAYS 2 S.J. 17Minor
- Vote recorded Do Pass. Result: pass.Upper
- Mar 5Scheduled for hearing
- Feb 25First read in Senate and referred to Senate Education S.J. 398Minor
- Feb 24House of Representatives Do Pass Amended , Passed, YEAS 61, NAYS 5 H.J. 423
- Feb 20Certified uncontested, placed on consent , Passed, H.J. 2
- Vote recorded Do Pass Amended. Result: pass.Lower
- Feb 20Committee on Appropriations Do Pass Amended , Passed, YEAS 8, NAYS 0 H.J. 2
- Feb 20Committee on Appropriations Motion to amend , Passed, H.J. 1 Amendment 1249AMajor
- Feb 20Scheduled for hearing
- Feb 4Referred to House Committee on Appropriations H.J. 223Minor
- Feb 2First Reading House H.J. 193Introduced
Education