MITCHELL, SD (Mitchell Now) — A bill that would change how South Dakota increases K-12 education funding advanced out of the House Education Committee on Monday, setting up a broader debate over school aid, teacher pay and state budget impacts.
House Bill 1205 would revise the state’s annual funding “index factor” so yearly increases would match inflation or 3%, whichever is greater. Current law caps increases at 3% or inflation, whichever is less, supporters told the committee.
Backers said the change would help maintain commitments tied to teacher salary targets and could provide property tax relief by increasing the state share of education costs.
The Bureau of Finance and Management opposed the measure, saying it would have cost about $31 million in general funds this year if it had been in effect, according to committee discussion reported by KELO.
The committee voted 8-6, with one member excused, to send HB 1205 to the House Appropriations Committee without recommendation, meaning lawmakers did not take a formal position for or against it.