Frustrated Lawmakers Defeat School Funding Change (SD)
February 2, 2011
South Dakota lawmakers grappling with possible deep cuts to education funding on Tuesday rejected the latest idea aimed at saving money and softening the blow for cash-strapped schools, which say they’re facing cutbacks and layoffs.
The State Senate Education Committee voted 5-2 to cut payments to small schools that enroll students from outside their districts. Several lawmakers showed frustration during the debate, and one senator openly questioned the state’s education funding system.
"When do we have a discussion about looking at how we fund education in this state?" asked Sen. J. Mark Johnston, R-Sioux Falls, who voted against the proposal. "We have to work together, you and us and the governor, to have a real discussion about creating an education system that manages our kids."
Republican Gov. Dennis Daugaard has said he wants to cut state aid to schools by 10 percent, saving an estimated $47 million. The proposal rejected Tuesday would have saved about $1.3 million, according to one of its sponsors.
"I jus t want all of us to keep that in mind," said Sen. Bob Gray, R-Pierre. "Yes, it’s important. But at the same time, we have much bigger issues and much bigger budget considerations."
The bill, introduced by Sen. Deb Peters, R-Hartford, would have affected the "small school adjustments" paid to low-enrollment districts. Now, smaller districts get a payment for each student who enrolls from outside the district’s boundaries.
Under its current system of education funding, South Dakota pays all schools about $4,800 per student. Daugaard wants to cut the state’s payment 10 percent, to about $4,320.
Schools with 200 students or fewer currently receive a "small school adjustment" of about $850 for each student. Those with enrollments between 200 and 600 get a smaller payment.
Peters’ bill would have ended payments to small schools for any student coming from a district larger than 600 students. A school with 200 students or fewer that took a student from a 200- to 600-student district would not have received a full $850 payment for that student. Tami Darnall, the education department’s director of finance, said she hadn’t yet calculated the estimated savings of cutting those subsidies.
The proposal would have also required the state Department of Education to distribute any leftover state aid at the end of the year to school districts.
"This bill levels the playing field for all students and districts," Peters said.
Dianna Miller, who represented the Large School Group, supported the bill and said the small school subsidies were first created as a "political decision" by lawmakers in the 1990s, when the legislature eancted the current school funding system.
But Sen. Tim Rave, R-Baltic, said he thought keeping the payments was a "fairness issue."
And Scott Swier, a lobbyist for the Small School Adjustment Alliance, said taking away the subsidies would be compounded by Daugaard’s proposed cuts.
"We know who the winners are going to be: the larger schools," Swier told the committee. "The smaller schools are definitely going to be the losers."