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Bill adjusting sparsely populated school district benefits advances

South Dakota Senate
Brent Duerre
/
SDPB
South Dakota Senate

A Senate committee is advancing a bill to modify the state’s maximum benefit sparsely populated school districts are eligible to receive.

The bill would increase the maximum sparsity benefit allowed to $175,000 in any fiscal year. That’s an increase of $65,000 and would be the first since 2013.

Proponents say that’s to account for inflationary measures and would provide long-term stability to school districts like those in the northwest portion of the state where schools and families are more geographically spread out.

Grant Judson represents the Bureau of Finance and Management. He said the financial impact should be noted.

"Not only would this affect the general funds needed for sparsity, but it would also increase the levies causing property taxpayers and all 148 school districts to pay more and local effort to pay for this increase. In addition, increase the sparsity maximum would cost an additional $612,195 in ongoing general funds. Rather than increasing the funds for 12 schools, these are funds that could be used towards increasing the index factors for all schools including sparse school districts,” Judson said. 

George Shipley is the superintendent of Bison school district. In his rebuttal he brought up how Neil Armstrong was from a small town in Ohio. He said every South Dakota student deserves a first-class education.

“We’re talking about South Dakota way of life. We’re not just talking about funds and dollars and cents. We’re talking about small-town South Dakota way of life. This protects that. This assures that. You know, a lot of great Americans come from these small towns. And if that means spending another 1/1000 of 1% to find the next kid in some small school district that might walk on the moon, I think that’s a good investment,” Shipley said. 

The bill passed committee 6-1 and now heads to the Senate floor.

Committee Chair Kyle Schoenfish opposed, saying SB 70 should go to the Appropriations Committee to look at the financial implications.

Jackson Dircks is a Freeburg, Illinois, native. He is pursuing a degree in English, Journalism and Secondary Education at Augustana University and planning to graduate in May 2025. He plans to pursue a career in sports journalism.