2008 Legislature:
What impact will it have on your district?

*** CORRECTED 3-11-2008 ***

South Dakota schools will see a 3 percent increase in funding for FY 09. The Legislature nixed funding for a 3rd year of the Classroom Connections project and changed the way consolidation incentives are paid. Here’s a look at some of the bills that survived this year’s session and a few that didn’t.

*Indicates bills that have been signed by the Governor as of March 3, 2008.

State aid to education (SB 187)
SB 187 provides schools with a 3 percent increase in funding through the state aid formula – setting the per-student allocation for FY 09 at $4,664.66. In order to receive the higher per-student allocation, schools must increase average teacher salaries and benefits by 3 percent over FY 08. If a school district does not increase teacher salaries and benefits by 3 percent, it will only receive a 2.5 percent increase in state aid funding, which is a per-student allocation of $4,642.02.

The bill directs the Department of Education to review Project Lead the Way as a potential resource for South Dakota and to develop a framework for the 21st century high school. There was no funding attached to these items. It also calls for establishment of a Teacher Compensation Assistance Program advisory council to determine how TCAP funds can be used to improve teacher salaries in FY 2010 and beyond.

Finally, the bill changes the way consolidation incentives are paid. Under the new law, districts are paid according to the number of new students they receive in their district.

Declining vs. growing enrollment (HB 1288)
HB 1288 limits districts from receiving both growing enrollment and declining enrollment dollars in the same year. It allows them to access whichever amount is higher.

Classroom Connections (HB 1087)
Among other things, HB 1087 contained $2.9 million that would have funded the South Dakota Classroom Connections laptop program for a third year. The bill was amended to remove that funding. The Department of Education will continue to search for ways to move the program forward.

Pre-Kindergarten (SB 26)
SB 26 proposed to give the South Dakota Board of Education rule-making authority related to pre-K programs. It would have allowed the state to set quality standards for those offering pre-K programs statewide. The bill passed the Senate but was defeated when it moved over to the House side.

Border agreements (SB21)*
This bill allows the state Department of Education to enter into agreements with bordering states to establish open enrollment or tuition regulation between the two states. It sets general parameters for negotiations and specifies that state money will be available to cover any differences between the established tuition rate and the per-student allocation. It also allows for existing contracts to remain in place.

School food service inspections (SB 27)
This bill brings state statute in line with federal law and current practice regarding inspections of school food service programs. Two inspections per year are required. This is not a change in current practice.

TCAP dollars for co-ops/multi-districts (HB 1044)*
HB 1044 allows for educational cooperatives and multi-districts to apply for Teacher Compensation Assistance funds for their teachers who serve public schools. It limits the total amount of TCAP funds available for this group to $100,000. This extension does not take any TCAP dollars away from school districts.

General funds and computer purchases (HB 1164)*
This bill allows school districts to use general funds to purchase or lease computer hardware and software.

Opportunity Scholarship (HB 1186)*
This bill makes a slight change to the eligibility requirements regarding the South Dakota Opportunity Scholarship. It says that a student may take the ACT or SAT prior to entering a postsecondary institution rather than before graduating from high school. An attempt to lower the ACT requirement to 23 failed.

Virtual School name change (HB 1312)*
With passage of HB 1312, the name of the South Dakota Virtual High School will be changed to the South Dakota Virtual School. A name change was considered in order, as the virtual school has the capability to serve both high school and junior high students.

Tech school funding (HB 1226 and 1227)
HB 1226 and 1227 make up the funding package for the state’s four tech schools. The first provides the tech institutes with $2 million for fulfilling their missions. The second provides $1 million for maintenance and repair projects on campus. Another bill, 1016, sets up a new system for funding the technical institutes.

*** CORRECTED 3-11-2008 ***