Starting July 1, 2026, South Dakota will set aside $5 million from state education funds specifically for extraordinary expenses related to special education services for children with disabilities. The bill also allows unused funds to carry over year to year instead of reverting to the state, up to a maximum reserve of $5.5 million annually.
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The amendment increases the base amount set aside for special education extraordinary expenses from four million to five million dollars beginning July 1, 2026, but removes the automatic annual increases tied to the index factor that were previously scheduled to begin in 2027, effectively WEAKENING the bill's long-term funding mechanism by freezing the amount at five million dollars rather than allowing it to grow with inflation.
The amendment increases the annual set-aside for special education extraordinary expenses from four million dollars to five million dollars, effective July 1, 2026, and adds a cap preventing the total reserved amount from exceeding five million five hundred thousand dollars, which STRENGTHENS funding for special education while establishing a spending limit. The amendment also simplifies the oversight process by removing the requirement for an oversight board recommendation, instead directing expenditures to be made as provided in statute.
Signed by the Governor S.J. 550
Delivered to the Governor S.J. 539
Signed by the Speaker H.J. 560
Signed by the President S.J. 525
Senate Concurred in amendments Passed, YEAS 20, NAYS 11. S.J. 514
House of Representatives Do Pass Amended Passed, YEAS 54, NAYS 15. H.J. 539
Committee on Appropriations Do Pass Amended Passed, YEAS 7, NAYS 2.
Committee on Appropriations Motion to amend
Committee on Appropriations Scheduled for hearing H.J. 1
Committee on Appropriations Scheduled for hearing
First read in House and referred to House Committee on Appropriations H.J. 445
Senate Do Pass Passed, YEAS 23, NAYS 10. S.J. 375
Committee on Appropriations Do Pass Passed, YEAS 5, NAYS 3.
Committee on Appropriations Scheduled for hearing S.J. 1
Committee on Appropriations Scheduled for hearing
Education Referred to Senate Committee on Appropriations Passed, YEAS 6, NAYS 1. S.J. 7
Education Scheduled for hearing
First read in Senate and referred to Senate Education S.J. 74
Concurred in amendments
Do Pass Amended
Committee on Appropriations — Do Pass Amended
Do Pass
Committee on Appropriations — Do Pass
Education — Referred to