South Dakota2026Active
HB1249
Changes to School Finance Accountability Board Rules
Last scannedAug 25, 2026, 3:29 AM
In one sentence
This law updates how the School Finance Accountability Board handles penalties for school districts and sets new rules for waiving those penalties based on special circumstances.
What it does
- Allows school districts to ask the board to waive financial penalties or state aid reductions if they show that 'special circumstances' caused the issue.
- Requires schools getting a waiver for high cash balances to keep their monthly cash below limits for at least three years, or lose the waiver and face penalties.
- Requires schools getting a waiver for teacher pay issues to raise average compensation and meet minimum salary rules for at least three years, or lose the waiver and face penalties.
- Directs the board to write new rules about how districts request waivers, including factors like employee retirements.
Who it affects
- The School Finance Accountability Board within the Department of Education
- Public school districts in South Dakota
Limits and unknowns
- The law does not define exactly what counts as 'special circumstances' for getting a waiver.
- The specific rules for how to request a waiver will be written later by the board, so details are not in this text yet.
Plain language
Terms to know
- State aid for general education
- Money from the state government given to schools to support regular classroom learning.
- Full-time equivalent teacher
- A way of counting teachers based on how many hours they work compared to a full schedule, used for calculating penalties.
- Waiver
- An official permission from the board that removes or reduces a penalty for a school district due to special circumstances.
Official record
Sources
Official summary
amend provisions pertaining to the School Finance Accountability Board, and the process by which a recommendation of the board is approved.
Official activity
Bill history
- Signed by the Governor