SOUTH DAKOTA LEGISLATIVE RESEARCH COUNCIL

FISCAL NOTE, 2004 LEGISLATIVE SESSION


FISCAL NOTE 2004-HB1254A

HB 1254 increase the general fund balance percentage for school districts in calculating state aid to education penalties.

House Bill 1254 as introduced would allow school districts to have larger general fund reserves before being assessed penalties through State Aid to Education. The bill would assess penalties against school districts for reserve balances at 3 percentages based upon the districts' Average Daily Memberships.

It is estimated that House Bill 1254 would have no impact on the state's finances as any penalties incurred by districts, either under this bill or current law, are redistributed to other districts:

Agency/Item  
General Fund   Federal Funds   Other Funds   Total   FTE  
Revenue:   $0   $0   $0   $0    
Expenses:   $0   $0   $0   $0   0.0  
Net Impact   $0   $0   $0   $0   0.0  


In consultation with the Department of Education, under current law it is estimated approximately $300,000 in penalties will be assessed and redistributed. That amount would decrease under this proposal.

APPROVED BY:_______________________________________ DATE:____________