State Aid calculation questions are best addressed by Susan Woodmansey, Dept. of Education, phone 773-4748 or susan.woodmansey@state.sd.us
The following statute allows the school to use General Fund dollars to support a postsecondary technical institute and other career and technical education purposes.
13-16-3. General fund defined
The general fund of the school district is a fund provided by law to meet all the operational costs of the school district, excluding capital outlay fund and special education fund expenditures pursuant to § 13-13-37, and to redeem all outstanding warrants against the general fund. Notwithstanding the provisions of § 13-16-6, the general fund may be used to purchase or lease computer hardware and software. The general fund may be used to support a postsecondary technical institute and other career and technical education purposes.
Statutes applicable to allowable general fund cash balance and the reduction of state aid can be found below. SDCL 13-13-73.5 is the specific statute that allows the reduction of state aid by subtracting allowable general fund cash balance from lowest general fund monthly cash balance.
13-13-10.1. Definitions
The education funding terms and procedures referenced in this chapter are defined as follows:
(8) “Monthly cash balance,” the total amount of money for each month in the school district's general fund, calculated by adding all deposits made during the month to the beginning cash balance and deducting all disbursements or payments made during the month;
(9) “General fund base percentage,” is determined as follows:
(a) Forty percent for a school district with a fall enrollment as defined in subdivision (2A) of two hundred or less;
(b) Thirty percent for a school district with fall enrollment as defined in subdivision (2A) of more than two hundred but less than six hundred; and
(c) Twenty-five percent for a school district with fall enrollment as defined in subdivision (2A) greater than or equal to six hundred.
When determining the general fund base percentage, the secretary of the Department of Education shall use the lesser of the school district's fall enrollment as defined in subdivision (2A) for the current school year or the school district's fall enrollment from the previous two years;
(10) “Allowable general fund cash balance,” the general fund base percentage multiplied by the district's general fund expenditures in the previous school year.
Dept. of Legislative Audit, Sept. 22, 2016 Page 1 of 2
13-13-73.5 Reduction of state aid by subtracting allowable
general fund cash balance from lowest general fund
monthly cash balance
Beginning on July 1, 2018, a school district's state aid for general education as calculated pursuant to § 13-13-73 shall be reduced by subtracting the allowable general fund cash balance from the lowest general fund monthly cash balance. If the result is less than zero, the reduction equals zero.
A school district created or reorganized after July 1, 2016, is exempt from the reduction provided by this section for a period of three years immediately following its creation.
13-8-47. Annual report to department--Contents, filing,
and auditing--Past-due reports
Before the first day of August every school board shall file an annual report with the Department of Education. The report shall contain all the educational and financial information and statistics of the school district as requested in a format established by the Department of Education. The report shall also contain, for each month of the fiscal year, the month-end cash balances of the school district's general fund, capital outlay fund, pension fund, and special education fund. The report shall also contain the following information for the district from the preceding fiscal year:
(1) Total teacher compensation, which is defined as the total amount spent on instructional salaries and benefits for certified instructional staff;
(2) The total amount spent on instructional salaries for certified instructional staff;
(3) The total amount spent on benefits for certified instructional staff;
(4) The total number of certified instructional staff employed by the school district; and
(5) Any other information necessary to comply with the provisions of SL 2016, ch 83.
The business manager, with the assistance of the secretary of the Department of Education, shall make the annual report, and it shall be approved by the school board. The business manager shall sign the annual report and file a copy with the Department of Education as provided in § 13-13-37. The division shall audit the report and return one copy to the school district.
Reports not filed prior to August thirtieth are considered past due and are subject to the past-due provisions of § 13-13-38.
Dept. of Legislative Audit, Sept. 22, 2016 Page 2 of 2
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