Two bills seeking to add funding for schools via different avenues – taxes on wind farms and the state unclaimed property trust fund – are still kicking. However, their fates come with questions from state appropriators.
State law already requires some taxes paid by wind energy companies go to local school districts. But that amount declines over time, and those taxes trickle into state general funds. SB 210 would change that
Prime sponsor of the bill, Sen. Steve Kolbeck, said the proposal mandates school districts see at least some benefit from the development of wind farms in their backyards.
We know that in school districts in the state of South Dakota, if you fill your own glass you don’t take sales and use tax out of the general fund. So why not," Kolbeck asks. "Why not let those people who have built those wind turbines, built those projects, fill their own glass?"
However, some in the education lobby fear this bill reneges on critical negotiations that made the backbone of the Blue Ribbon Task Force, a yearslong effort comprised of stakeholders and businesses from across the state aiming at raising teacher pay.
Lobbyist Diana Miller represents the state Large School Districts.
“I have long been a defender of that formula and will continue to defend that formula," Miller said. "I understand Sen. Kolbeck wanted to have a conversation, and we’re willing to have a conversation, but I think you need to bring all groups to the table. It can’t just be wind farms and new developments and that type of thing.”
Another bill, sponsored by Sen. Mark Lapka would use interest earnings from the unclaimed property fund to fund schools statewide.
“The way this is set up now, this wouldn’t be eligible to be implemented until fiscal year 2028, so there’s a little bit of time here," Lapka said. "I guess that’s the basis of it. A little bit of out-of-the-box thinking, forward looking, trying to develop a revenue source that’s going to sustain and support our schools.”
Both bills were deferred until next Monday and are awaiting estimates from the state Bureau of Finance and Management for the committee to make an informed decision.