1 ARSD 24:44:01 Draft 08/20/2026 CHAPTER 24:44:01
SCHOOL FINANCE ACCOUNTABILITY BOARD
Section
24:44:01:01 Definitions.
24:44:01:02 Meetings--how called.
24:44:01:03 Quorum of board--majority vote required for action.
24:44:01:04 Appeal of financial penalty Violations of general state aid accountabilities and
request for waivers.
24:44:01:05 Determination of violation, Repealed.
24:44:01:06 Factors considered.
24:44:01:07 Appeal Waiver documentation.
24:44:01:08 Appeal review timeline Review of waivers.
24:44:01:09 Appeal of waiver denial, Repealed.
24:44:01:10 Waiver recommendations, Repealed.
2 ARSD 24:44:01 Draft 08/20/2026 24:44:01:04. Appeal of financial penalty Violations of general state aid accountabilities
and request for waivers. The department shall notify a school district by the first Friday in
October of any financial penalty owed pursuant to SDCL 13-13-73.6 of any violations of SDCL
§§ 13-13-73.5, 13-13-73.6, 13-13-73.8, or 13-13-73.9. The school district may appeal to the
board from the imposition of the a financial penalty according to the requirements
of § 24:44:01:07 request the board waive any reduction to the district’s state aid for general
education or penalty imposed within thirty days of the notice.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-13-73.5, 13-13-73.6, 13-13-73.8, 13-13-73.9.
3 ARSD 24:44:01 Draft 08/20/2026 24:44:01:05. Determination of violation. The board shall determine whether a school district
appealing the imposition of a financial penalty under SDCL 13-13-73.6 is in violation of SDCL
13-13-73.6. The determination shall be made concurrently with the board's determination on
whether to approve an appeal to waive the financial penalty. An appeal of the decision that
a school district is in violation of SDCL 13-13-73.6 is governed by SDCL chapter 1-26
Repealed.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-13-73.5, 13-13-73.6.
4 ARSD 24:44:01 Draft 08/20/2026 24:44:01:06. Factors considered. If a school district appeals the imposition of a
financial penalty imposed under SDCL 13-13-73.6, the The board shall consider the following
factors in determining whether to recommend grant a waiver of the penalty:
(1) Fiscal impact due to teacher retirement;
(2) Fiscal impact due to declining student enrollment;
(3) Fiscal impact due to changes in benefit expenditures such as changes in family status
and health insurance;
(4) Effects of unexpected teacher resignations; and
(5) Fiscal impact due to ongoing teacher vacancies; and
(6) Any unforeseen or extenuating circumstances affecting the school district's ability to
meet it’s the accountability targets measures as documented by the school district.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-13-73.5, 13-13-73.6, 13-13-73.8, 13-13-73.9.
5 ARSD 24:44:01 Draft 08/20/2026 24:44:01:07. Appeal Waiver documentation. A school district's application to appeal
the imposition of a financial penalty request to waive any reduction to the district’s state aid for
general education or penalty imposed shall include written documentation of the following:
(1) The projected average teacher salary, based on data collected pursuant to SDCL 13-8-
47 and SDCL 13-3-51 and compensation for the current fiscal year;
(2) The increase in average teacher compensation, as defined in SDCL 13-8-47,
from fiscal year 2016 to fiscal year 2017 and all subsequent years;
(3) The increase in total teacher compensation, as defined in SDCL 13-8-47, from
fiscal year 2016 to fiscal year 2017 The current fiscal year projection of lowest monthly cash
balance percentage; and
(4)(3) Any additional information requested by the board to enable the board to make
a determination.
School districts may supplement the documentation required by this section
with additional information supporting the application of appeal.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-8-47, 13-13-73.5, 13-13-73.6, 13-13-73.8, 13-13-
73.9.
6 ARSD 24:44:01 Draft 08/20/2026 24:44:01:08. Appeal review timeline Review of waivers. An application to appeal the
imposition of a financial penalty shall be submitted before the first Friday of November using the
appeal application form provided by the department. No appeal application received by the board
after the first Friday of November will be considered. All appeal applications shall be considered
by the board at a meeting to occur before the last Monday in November. The board will consider
requests for waivers at their next board meeting. Waivers submitted beyond thirty days from
notice will not be considered. The board will allot time at that meeting for a school district to
present testimony or information in support of its application of appeal waiver request.
Within five business days of the board's determinations, the board shall forward
all recommendations to the Joint Committee on Appropriations for approval. If an appeal is
denied, the school district shall be served written notice of the denial via certified mail.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-8-47, 13-13-73.5, 13-13-73.6, 13-13-73.8, 13-13-
73.9.
7 ARSD 24:44:01 Draft 08/20/2026 24:44:01:09. Appeal of waiver denial. A school district may appeal the board's denial of
an appeal of the imposition of the financial penalty under SDCL 13-13-73.6 to the secretary
of education within 15 calendar days of receipt of the notice of denial. The appeal to the
secretary shall be in writing and specify the adverse action being appealed. The appeal shall also
include a copy of the school district's application to the board appealing the imposition of the
financial penalty of SDCL 13-13-73.6 and the minutes of the board meeting at which the adverse
action was taken. The secretary may require the district to submit additional information in order
to make the determination.
The secretary shall issue a written decision within 30 calendar days of receipt of the appeal
of the notice of denial. The decision shall be served upon the school district via certified mail.
The secretary shall forward recommendations for waiver to the Joint Committee
on Appropriations for approval. If the secretary upholds the board's denial of an appeal
of imposition of the financial penalty, the decision of the secretary is final Repealed.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-8-47, 13-13-73.5, 13-13-73.6.
8 ARSD 24:44:01 Draft 08/20/2026 24:44:01:10. Waiver recommendations. The board shall deliver
appeal recommendations to the Joint Committee on Appropriations or the Interim Committee
on Appropriations. The decision of the Joint Committee on Appropriations or Interim Committee
on Appropriations is final. The board shall notify a school district of the decision of the
Joint Committee on Appropriations or the Interim Committee on Appropriations within ten
business days after the board receives the decision of the Joint Committee on Appropriations or
the Interim Committee on Appropriations Repealed.
Source: 44 SDR 22, effective August 8, 2017.
General Authority: SDCL 1-45-38.
Law Implemented: SDCL 1-45-38, 13-13-73.5, 13-13-73.6.