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South DakotaHB 1249101st South Dakota Legislature (2026)House

amend provisions pertaining to the School Finance Accountability Board, and the process by which a recommendation of the board is approved.

Sponsored By: Kassin, Chris (Republican)

Signed by Governor

Administrative ProcedureBoards and CommissionsEducationPromulgation of RulesState Affairs and GovernmentState Aid to Education

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

New school districts avoid temporary aid cuts

South Dakota school districts created or reorganized after July 1, 2016, are exempt from cash-balance-related state-aid cuts. The exemption lasts for the three years immediately following the district’s creation. It does not exempt districts from teacher-pay penalties.

School districts get conditional penalty relief

The law creates a School Finance Accountability Board within the Department of Education. Its five members are appointed by the Governor and serve four-year terms. Districts can request relief from state-aid cuts or teacher-pay penalties when special circumstances caused the violation. The board can waive all or part of the cut or penalty. Cash-balance waivers can require the district’s annual lowest monthly general-fund balance to stay below its allowed balance for at least three years. Teacher-pay waivers can require higher average teacher pay and at least the state minimum salary for each full-time-equivalent teacher for at least three years. The board can withdraw relief and restore cuts if the cash balance exceeds the allowed amount during that period. It can also withdraw relief and restore penalties if either teacher-pay condition is broken. The board can require an accreditation review for excess cash balances or teacher-pay violations. It must set waiver procedures and factors, including the impact of employee retirements. The department must report the required district data to the Governor and Legislature each year.

Sponsors & Cosponsors

Sponsor

  • Kassin, Chris

    Republican • House

Cosponsors

  • Muckey, Erik

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 107 • No: 7

Senate vote • 3/9/2026

Do Pass Amended

Yes: 33 • No: 0

Senate vote • 3/5/2026

Do Pass

Yes: 5 • No: 2

House vote • 2/24/2026

Do Pass Amended

Yes: 61 • No: 5

House vote • 2/20/2026

Do Pass Amended

Yes: 8 • No: 0

Actions Timeline

  1. Signed by the Governor

    3/30/2026House

  2. Delivered to the Governor

    3/12/2026House

  3. Signed by the President

    3/11/2026Senate

  4. Signed by the Speaker

    3/10/2026House

  5. Senate Do Pass Amended, Passed, YEAS 33, NAYS 0

    3/9/2026Senate

  6. Senate Education Do Pass, Passed, YEAS 5, NAYS 2

    3/5/2026Senate

  7. Scheduled for hearing

    3/5/2026Senate

  8. First read in Senate and referred to Senate Education

    2/25/2026Senate

  9. House of Representatives Do Pass Amended, Passed, YEAS 61, NAYS 5

    2/24/2026House

  10. Certified uncontested, placed on consent

    2/20/2026House

  11. House Committee on Appropriations Do Pass Amended, Passed, YEAS 8, NAYS 0

    2/20/2026House

  12. House Committee on Appropriations Motion to amend, Passed

    2/20/2026House

  13. Scheduled for hearing

    2/20/2026House

  14. Referred to House Committee on Appropriations

    2/4/2026House

  15. First Reading House

    2/2/2026House

Bill Text

  • Introduced

    2/2/2026

    PDF

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