2018 Legislative Wrap up EXECUTIVE SUMMARY
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2018 Legislative Wrap Up EXECUTIVE SUMMARY Purpose of Report: To inform the School Board about the 2018 South Dakota Legislative Session and its impact on education and the Sioux Falls School District. The main run of the 2018 Legislative Session is over. Schools received a 1.0 percent increase in the general state aid formula and the special education formula. Additionally, schools received one-time money equal to 0.7% that will be paid to districts in the current school year. In addition to State Aid and the one-time money, the District tracked 70 bills and ten of those were considered key bills. Of the key bills, the District supported one and opposed eight (a ninth bill was originally opposed but the District position became neutral when it was amended). The amended bill (restraint and seclusion) and a bill giving patriotic societies the right to present information in schools passed, while all other key bills failed. Regarding the one percent state aid increase, the index factor actually required an increase of 1.7 percent. The Legislature was unable to find the money to fund that increase with ongoing funds, so the one-time increase of 0.7 percent using FY18 funding was an attempt to cover the full required increase, if for only one year. Looking at education funding over the long-term, after the historic increase two years ago that was funded by a half-cent increase in the sales tax to fund and were followed by a 0.3 and 1.0 percent increase, State Aid is 33.7 percent of the State’s general fund budget in FY19 (next year). This is up from an all-time low (since the formula was overhauled in 1998) of 28.9 percent in FY16, is up slightly over last year’s percentage of 33.3, and is about the same percent of the budget as it was in FY10 (before State Aid was frozen and then reduced by 8.6%). For comparative purposes, in FY98 State Aid was 38.9 percent of the State’s general fund budget. Administrative Recommendation to School Board: Acknowledge the report on the 2018 Legislation as presented. Report Prepared by: Finance Office March 12, 2018 Presented by: Todd Vik Positions are updated as POSITIONS ON 2018 PENDING LEGISLATION bills are able to be BY THE reviewed by the District. LEGEND SIOUX FALLS SCHOOL DISTRICT Color Key Updated Sioux Falls Legislators Positions not yet approved by District 9 – Deb Peters, Michael Clark, Wayne Steinhauer School Board District 10 – Jenna Netherton, Doug Barthel, Steven Haugaard Passed both District 11 – Jim Stalzer, Chris Karr, Mark Willadsen houses District 12 – Blake Curd, Arch Beal, Greg Jamison District 13 – Jack Kolbeck, Sue Peterson, G. Mark Mickelson Dead District 14 – Deb Soholt, Tom Holmes, Larry Zikmund Key Bills District 15 – Reynold Nesiba, Jamie Smith, Karen Soli House Bill 1055 Introduced by: The Committee on Appropriations at the request of the Bureau of Finance and Management Todd Vik 367-7909 An Act to revise the special education property tax levy for school districts and to revise the state aid to special education formula. Impact: This bill freezes the FY19 per student allocation at the FY18 level and resets the property tax levies per the Cutler/Gabriel Amendment. Position: The District opposes this bill. The state general fund budget is increasing. The State should find ways to increase the State Aid per student allocation as well. Additionally, the property tax portion of the inflationary increase should at least be funded, even if the State cannot find the funds for its portion. House Bill 1056 Introduced by: The Committee on Appropriations at the request of the Bureau of Finance and Management Todd Vik 367-7909 An Act to revise the property tax levies for the general fund of school districts and to revise the state aid to general education formula. Impact: This bill freezes the FY19 per student allocation at the FY18 level and resets the property tax levies per the Cutler/Gabriel Amendment. Position: The District opposes this bill. The state general fund budget is increasing. The State should find ways to increase the State Aid per student allocation as well. Additionally, the property tax portion of the inflationary increase should at least be funded, even if the State cannot find the funds for its portion. Sioux Falls School District 49-5 Page 1 Printed 03/12/18 8:31:13 AM Positions are updated as POSITIONS ON 2018 PENDING LEGISLATION bills are able to be BY THE reviewed by the District. SIOUX FALLS SCHOOL DISTRICT House Bill 1099 Introduced by: The Committee on Education at the request of the Office of the Governor Dr. Teresa Boysen 367-7916 An Act to revise certain provisions regarding dual education credit. Impact: This bill removes the language that the state or school may pay all or part of the tuition. Students must have the course work approved by the school district prior to enrolling with the post-secondary institution. Section 2: speaks to the regulations put on post-secondary institutions regarding cost associated with dual credit. Position: The District supports this bill. Dual credit opportunities allow students the opportunity to earn college credit at a reduced cost and increase the likelihood that they will continue their education post high school in a 2- or 4-year institution. House Bill 1100 Introduced by: Representatives Wismer, Ahlers, Bartling, Brunner, Hawley, Jensen (Kevin), Lesmeister, McCleerey, Ring, Schoenfish, Smith, Steinhauer, Wiese, and Willadsen and Senators Sutton, Frerichs, Kennedy, Nelson, and Peters Todd Vik 367-7909 An Act to require a name be printed on public contracts. Impact: This bill requires the name of the signer be printed on public contracts. Position: The District takes no position on this bill. House Bill 1114 Introduced by: Representatives Steinhauer, Clark, Conzet, Glanzer, Heinemann, Holmes, Jamison, Johns, Kettwig, Marty, Otten (Herman), Reed, Rhoden, Stevens, Willadsen, Wismer, York, and Zikmund and Senators Peters, Frerichs, Jensen (Phil), and Stalzer Kate Bartell Nowak 367-4670 An Act to establish certain requirements for students enrolling in resident school districts or assigned schools after participating in open enrollment. Impact: This bill establishes requirements for students wishing to return to the student’s resident district or assigned school after the conclusion of a school year. The parent/guardian would be required to notify the affected school board(s) of their intent to return to the HAC on forms provided by the Department of Education no later than August 1st. The bill allows for reenrollment after the deadline when the affected board(s) determine special circumstances exist. Position: The District supports this bill as written but will monitor it closely. The District supports establishing a procedure for ending an open enrollment. A later date would also be supported to align with other open enrollment procedures. Sioux Falls School District 49-5 Page 2 Printed 03/12/18 8:31:13 AM Positions are updated as POSITIONS ON 2018 PENDING LEGISLATION bills are able to be BY THE reviewed by the District. SIOUX FALLS SCHOOL DISTRICT House Bill 1120 Introduced by: Representatives Peterson (Sue), Ahlers, Barthel, Beal, Bordeaux, Brunner, Campbell, Carson, Chase, Clark, Dennert, DiSanto, Frye-Mueller, Goodwin, Haugaard, Heinemann, Howard, Jamison, Jensen (Kevin), Johnson, Kaiser, Karr, Lesmeister, Livermont, Lust, Marty, May, McCleerey, Mills, Peterson (Kent), Pischke, Qualm, Rhoden, Rounds, Schaefer, Steinhauer, Turbiville, Wiese, York, and Zikmund and Senators Langer, Cronin, Greenfield (Brock), Jensen (Phil), Killer, Klumb, Kolbeck, Monroe, Nelson, Netherton, Novstrup, Russell, Stalzer, Wiik, and Youngberg Mark Meile 367-7960 An Act to provide equal access for all students to activities sponsored by the South Dakota High School Activities Association or school districts. Impact: Allows alternative (home) school students the ability to participate in any activity sponsored by the SDHSAA and/or any activity sponsored by the district or any school in the district. The bill does restrict public school students who would be academically ineligible from transferring to home school to remain eligible by making all students who switch to home school ineligible for activities/sports for one year Position: The District opposes this bill. The bill allows home school students to pick and choose what services they receive and what rules they have to follow by effectively exempting them from all academic and other non-team related rules (i.e. passing X number of classes, school attendance on game day, etc.). The “academic eligibility” requirement for home school students contained in the bill is tepid, at best. The bill may also put home school students above their public school peers by automatically giving them an open-enrollment right on to any team or activity in any school they want in the district, potentially moving from school to school depending on the season/activity. Actually, the bill may also have given a sports-related open enrollment right to public school students with its imprecise wording: Any student enrolling in a South Dakota district pursuant to §13-15-21 or receiving alternative instruction pursuant to §13-27-3 is eligible to participate in any interscholastic activity sponsored by the South Dakota High School Activities Association and any activity sponsored by the district or any school in the district. (emphasis added) House Bill 1128 Introduced by: Representatives Ahlers, Bartling, Brunner, Hawley, Peterson (Sue), Smith, and Wismer and Senators Haverly, Nesiba, Peters, Sutton, and Tidemann Todd Vik 367-7909 An Act to revise certain provisions regarding increases in teacher compensation. Impact: This bill, as amended, requires school districts below the target teacher salary to increase their teacher compensation by 65 percent of the increase in the State Aid Formula each year or state aid would be reduced by $500 per teacher employed by the District.