Alcester Union & Hudsonite Online

How much funding schools will receive from the state and what they do with the money will draw close attention when the 2008 legislative session starts Jan. 8.

“We need to balance the needs of K-12 education with the needs of lots of other worthy causes,” Gov. Mike Rounds told legislators during his annual budget address in Pierre on Dec. 3.

Rounds proposed that $35.8 million be spent on pre-kindergarten through doctorate school education in the 2008-2009 fiscal year. Most of that money, $22.7 million, would be put toward K-12 education in South Dakota.

That amounts to a 2.5 percent increase in per student allocation, which is the money given to a school district on a per-student basis. The Department of Education proposed a 3 percent increase, but Rounds said the state doesn’t have enough money to commit to such an increase.

“We don’t know what they are going to do [with the money], but there’s a trend here,” Rounds said.

The governor said school districts are putting the extra money from the state into savings accounts rather than spending it on teacher salaries.

House Minority Leader Dale Hargens, D-Miller, disagrees with the governor.

“They’re taking a snapshot of the school district reserves on June 30 every year. That’s the only time schools have money on hand, because property taxes have come in and they haven’t paid salaries or purchased supplies or books for the upcoming academic year,” Hargens said.

“It’s not fair to criticize our school districts,” Hargens said. He thinks if people saw the figures from the months of April or October, it would be a different story.

House Majority Leader Larry Rhoden, R-Union Center, said he is beginning to agree with the governor’s philosophy.

“The numbers are compelling,” Rhoden said. “It isn’t kosher. The school districts are putting as much money into their reserves as we’re giving them.”

Rhoden said the legislature has consistently given more money to education, but the numbers show the money is not being spent on teacher compensation.

“When school districts argue that you can’t build on one-time funds, that’s legitimate. But every year since I’ve been in the legislature, we’ve added more money for K-12 education,” Rhoden said.

Some newer areas of the education budget are seeing repeat funding. The small school factor affects 124 schools in the state.

Legislation passed during the 2007 legislative session gives school districts with between 200 and 600 students more money.

Under Rounds’ proposal, small school districts would get $3.9 million next year.

The sparsity factor affects 23 school districts in South Dakota, most of which are located in the western part of the state. Those districts will receive $2 million in additional funding next year if Rounds’ proposal is accepted.

Rounds is also proposing consolidation incentives for South Dakota schools in the amount of $348,000 for the next fiscal year.

Twenty-six districts are impacted by sharply rising enrollment. Right now, a district must grow by 5 percent or 25 students before it qualifies for more funds. Rounds suggested changing that figure to a flat 10 percent.

After K-12 funding, compensation for the Board of Regents weighs in at about $4.6 million. The regents science facilities bond payment will cost $2.3 million and the regents “computing environment” will cost $1.3 million.

“Birth to three” funding, which Rounds said helps younger special-needs children, would cost $1.8 million.

Rounds said the state has spent $948,750 on legal defense in the pending school funding adequacy lawsuit. A law firm out of St. Louis has taken the case for the state.

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