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Read. Follow. Verify.South Dakota Legislature proposes changes to school district general fund base percentage calculations
Last action · January 28, 2026: Deferred to the 41st legislative daySponsors: Drew Peterson and 2 others
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What This Bill Proposed
House Bill 1131 amends the process by which certain South Dakota school districts calculate their and allowable general fund cash balances. The bill modifies definitions related to and the percentage used to determine allowable cash balances based on student population tiers.
Changes how public school districts calculate maximum allowable general fund cash balances, which directly affects local school district budget planning and reserve fund limits.
- House Bill 1131 was introduced in the South Dakota House of Representatives during the 101st Legislative Session in 2026. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
school districts
School districts must calculate their general fund base percentages and allowable general fund cash balances using revised formulas and enrollment figures.
Department of Education
The secretary of the Department of Education must use school district fall enrollment and updated definitions when computing state aid to education and general fund base percentages.
Key Facts
- The bill amends the calculations and definitions in § 13-13-10.1 regarding education funding terms and procedures in South Dakota.
- Nonresident students in the care and custody of state agencies such as the Department of Social Services, Unified Judicial System, or Department of Corrections may be included in the receiving district's fall enrollment.
- Fall enrollment calculations account for students enrolled on the last Friday of September, minus tuition-receiving students (with specific exceptions), plus tuition-paying students.
- Target teacher ratio factors are established as 12 for districts with 200 or fewer students, calculated via a specific formula for districts between 200 and 600 students, and 15 for districts with 600 or more students.
Show all 12 facts
- English learner adjustments are calculated by multiplying 0.25 by the number of students scoring below level four on the prior year's language proficiency assessment.
- The index factor is defined as the annual percentage change in the consumer price index or three percent, whichever is less.
- Target teacher salary for the fiscal year beginning July 1, 2025, is set at $62,821.19, and increases annually by the index factor thereafter.
- The overhead rate is defined as thirty-eight and seventy-eight-hundredths percent, subject to adjustment beginning in fiscal year 2018.
- Local need calculations incorporate fall enrollment divided by the target teacher ratio factor, English learner adjustments, teacher compensation, and overhead rates.
- Wind energy tax revenue rules dictate retention percentages for wind farms producing power for the first time after June 30, 2016.
- The general fund base percentage is updated to use a sliding scale or specific percentages based on school district fall enrollment thresholds, utilizing current or previous two years' enrollment data.
- Allowable general fund cash balance is calculated by multiplying the district's previous year general fund expenditures by the general fund base percentage.
Frequently Asked Questions
How is the target teacher salary determined under this bill?
What is the general fund base percentage for school districts?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
4 actions- Jan 28, 2026HouseDeferred to the 41st legislative day
- Jan 28, 2026HouseCommitteeDo Pass
- Jan 28, 2026HouseScheduled for hearing
- Jan 26, 2026HouseIntroducedFirst read in House and referred to
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Revision of School District General Fund Reserve Limits
The legislation modifies how school districts calculate their allowable general fund cash balances by transitioning from fixed percentage tiers to updated formulas incorporating multi-year enrollment averages.
Connected Entities
Sources
sdlegislature.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 45)
- Controversy10Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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