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create the community-based providers methodology supplement fund, create the target teacher salary supplement fund, and provide for the transfer of certain unobligated cash balances to the fund.

This bill creates two new dedicated funds: one to increase teacher salaries and another to boost payment rates for community-based healthcare providers. Money for these funds will come from transferring unobligated cash balances from other state accounts, with the funds administered by the Department of Education and Department of Human Services respectively. The bill repeals an existing section and modifies budget-related laws to establish these new funding mechanisms.

require that the Department of Education provide for the compensation of a teacher employed by a school district.

This bill shifts teacher pay from individual school districts to the state Department of Education, which will now use state general appropriation money to pay teachers' salaries and benefits based on a standardized schedule set by the Board of Education Standards. School districts can no longer set teacher compensation independently but are limited to hiring only a certain number of teachers based on a state-established target ratio. The bill repeals several existing provisions related to local teacher compensation decisions and replaces them with a statewide salary system that accounts for teacher certification demand, education level, and experience.

make an appropriation for a statewide educator retention initiative.

South Dakota is setting aside $2.5 million to help school districts and private schools keep teachers, by offering grants that schools can use to address problems causing educators to leave. The Department of Education will run this program from 2026 through 2029, working with schools to identify and fix retention issues using data-based solutions. This creates a new funding source and initiative—it doesn't change any existing laws, but rather establishes a new grant program focused on teacher retention.

reduce certain property taxes for owner-occupied property, and to increase the rates for certain gross receipts taxes and use taxes.

This bill eliminates property taxes on owner-occupied, single-family homes by setting their school mill levy to zero, starting in 2027. To replace the lost property tax revenue for schools and fund state employee and Medicaid provider pay increases, the bill raises sales tax and gross receipts tax rates across the state. The changes are designed to shift the tax burden from homeowners to consumers making purchases.

revise the General Appropriations Act for fiscal year 2026.

This bill adjusts spending amounts in South Dakota's budget for fiscal year 2026 by increasing or redirecting funds to various state agencies and programs. The changes include boosting funding for economic development, state employee compensation, building maintenance and repairs, and information technology services, with increases coming from general funds, federal funds, and other revenue sources.