Session Law Chapter 93
School districts may expend capital outlay funds
for an additional time for certain costs.
FOR AN ACT ENTITLED, An Act to extend for two years the period of time in which school
districts may expend capital outlay funds for certain transportation, insurance, energy, and
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 13-16-6 be amended to read as follows:
13-16-6. The capital outlay fund of the school district is a fund provided by law to meet
expenditures which result in the acquisition or lease of or additions to real property, plant, or
equipment. Such an expenditure shall be for land, existing facilities, improvement of grounds,
construction of facilities, additions to facilities, remodeling of facilities, or for the purchase or
lease of equipment. It may also be used for installment or lease-purchase payments for the
purchase of real property, plant, or equipment, which have a contracted terminal date not
exceeding twenty years from the date of the installment contract or lease-purchase and for the
payment of the principal of and interest on capital outlay certificates issued pursuant to § 13-16-6.2.
Any purchase of one thousand dollars or less may be paid out of the general fund. The total
accumulated unpaid principal balances of such installment contracts and lease-purchase and the
outstanding principal amounts of such capital outlay certificates may not exceed three percent
of the taxable valuation. The school district shall provide a sufficient levy each year under the
provisions of § 13-16-7 to meet the annual installment contract, lease-purchase, and capital
outlay certificate payments, including interest.
A school district which contracts its student transportation may expend from the capital
outlay fund an amount not to exceed fifteen percent of the contract amount. In addition, a school
district which reimburses for mileage instead of providing transportation pursuant to § 13-30-3,
may use the capital outlay fund to pay for fifteen percent of its mileage reimbursement costs.
The capital outlay fund may be used to purchase textbooks and instructional software.
The capital outlay fund may be used to purchase warranties on capital assets if the
warranties do not include supplies.
During the period of time beginning on July 1, 2009, and ending on June 30,
school district may make payments from its capital outlay fund for the purchase of property
insurance and casualty insurance, for payments for energy costs and the cost of utilities, and for
motor fuel or for any portion of a contract providing transportation to students or for any
mileage reimbursements. However, the total amount that a school district expends from its
capital outlay fund for these expenses may not exceed forty-five percent of the total tax revenues
deposited in that fund during the current school fiscal year, and for any school district with a
current tax levy for the capital outlay fund that is greater than its tax levy for the capital outlay
fund in school fiscal year 2008, the total amount expended from the capital outlay fund for these
expenses may not exceed forty-five percent of the total tax revenues that would have been
deposited in that fund during the current school fiscal year if the tax levy for the capital outlay
fund had not been increased since 2008.
Signed March 10, 2011