Bill > HB1249

This bill modifies the powers and procedures of the School Finance Accountability Board, a five-member board appointed by the Governor. Previously, the board could recommend waivers for school districts facing penalties or reductions in state aid due to special circumstances, and these recommendations were subject to review and approval by the Joint Committee on Appropriations or the Interim Committee on Appropriations. Now, the bill clarifies that the board itself can grant, deny, or amend waivers for reductions in state aid for general education (imposed under § 13-13-73.5) or penalties for failing to meet teacher compensation requirements (imposed under § 13-13-73.9), provided the district demonstrates special circumstances. The board can also condition these waivers on the school district meeting specific financial or compensation goals for up to three years, with the possibility of rescinding the waiver and imposing penalties if the conditions are not met. Furthermore, the bill requires the board to establish rules for waiver requests and consider factors like the impact of employee retirements, and it removes the explicit requirement for legislative committee approval of waivers, shifting that decision-making authority to the board. The bill also amends existing sections to clarify how reductions in state aid are calculated and to remove the previous provision allowing school districts to request waivers from penalties from the board.

Budget and Finance, Education

https://sdlegislature.gov/#/Session/Bill/26809