by ASBSD Executive Director Heath Larson

With the 100th Legislative Session complete, the work continues as we look ahead to the coming year. We have a couple of work groups that are meeting to discuss education topics and potential legislation as we continue our diligent efforts to move public education in our great state forward.

As executive director at ASBSD, I am grateful for the collaborative approach we have to engage with legislators, school boards, educators, and stakeholders across the state. It Takes Everyone! Our kids deserve the best education possible and local school boards have meaningful influence in decision-making as they govern their districts.

With the ASBSD/SASD Joint Convention being held in Sioux Falls on August 7-8, make sure to get registered for the event as we are excited to bring you another premier professional development opportunity.

With Memorial Day upon us, may we honor and remember the men and women of the United States Armed Forces who gave their lives in military service to our country and those that have gone before us.

I hope you enjoy the information provided in our ASBSD Highlights & Insights newsletter that will keep you as school board members updated on happenings across the state impacting K-12 public education.

Enjoy a safe holiday weekend!

ASBSD & ASBPT are pleased to announce Carolyn Deal has joined the team as the Protective Trust Manager. Deal began her tenure with us on Monday, May 19.

Deal has been in finance for over 20 years, including being with the City of Fort Pierre since 2010 as Assistant Finance Officer where her duties included managing utility billing, accounts payable, payroll and other duties as needed.

“I am excited to join ASBSD as Protective Trust Manager. I feel my accounting skills are a great representation of what my duties will be here,” Deal said.

“I look forward to working with the many schools and school boards that they represent.”

Prior to her work with the City of Fort Pierre, Deal was an Accounting Assistant at the S.D. Department of Revenue for four years and Accounting Assistant at Cretex for three years.

Deal & her husband Brian have 3 boys - Gage, Zach, & Nicholas. They have a home north of Pierre and enjoy many activities with a close circle of friends such as camping, dinners, watching football, and Friendsgiving.

How will SB 216 impact taxing districts?

A key component to SB 216 is that it is not decreasing valuations. It is simply restricting the total owner-occupied reappraisal valuation in a county from increasing more than 3% annually. New construction within the district is not part of that limitation, so the full amount of new construction will be added to the district’s valuation. That means the valuation limitation will have little to no effect on most taxing districts. The counties, cities, and townships will continue to receive the same amount of property taxes they are currently getting.

The cap on the growth factor for budget purposes may impact some districts, but only those in high-growth areas. These limitations go into effect for the 2027 budget year.

If a district typically sees less than a 3% growth, then this portion of SB 216 will have zero effect. To put this in perspective:

• Only 3 out of 66 counties have a 5-year average growth of more than 3%
• Less than 20% of cities reported a growth percentage of greater than 3%
• More than 96% of townships had a growth percentage of less than 3% last year

An increase in usage of the Assessment Freeze program will also not impact taxing districts. The districts will continue to be able to ask and receive the same amount of property tax dollars they are currently receiving regardless of the number of individuals that apply for the relief program.

School district funding is handled differently than counties, cities, and townships. Since each fund has its own mechanism, each fund must be addressed separately.

SCHOOL GENERAL FUND

• Any district under the State Aid to Education Funding formula will continue to get the “Need” that is calculated by the Department of Education through a combination of Local Effort and State Aid.
• Districts that are fully funded by Local Effort will still see valuations increasing.

SCHOOL CAPITAL OUTLAY FUND

• The main functionality of the Capital Outlay limitations is not changing. The calculations have been and will continue to be based on the maximum allowable the district can get. It is NOT based upon the actual amount of taxes requested by the district. A school district will not be penalized if it is not taxing at the maximum allowable under SB 216.
• The only change happening for Capital Outlay is that the growth percentage is no longer “unfettered”. Starting in Taxes Payable 2027, the growth will not be able to be greater than 3% (barring situations with TIF dissolution and discretionary formula) for the Growth+3% Limitation.
• Worst case scenario, any school district that falls under the Growth+3% Limitation is a 6% increase in the maximum they could have received in the prior year.
• ONLY those school districts that typically seeing a growth greater than 3% AND fall under the Growth+3% Limitation will be impacted. Even then, this fund will be eligible for additional tax dollars each year. The increase may not be as much as realized previously.
• All districts now have the option to opt out of the capital outlay fund if they so choose.
• If school districts want to do this for Pay 2026, they will have two weeks to act on it. SB 216 becomes law on July 1, and the deadline to take action by the Board is July 15.
• The $3 maximum levy is still in place and cannot be exceeded. That means that the base CapOut fund + CO Certificates + CO Opt Out cannot generate more than a $3.00 levy.

SCHOOL SPECIAL ED FUND

• It is not possible to project what the SpEd max levy will be for the next 5 years, nor how that will play out with valuation changes in every single school district. But in general there will be minimal impact to the Special Ed fund under SB 216.

While SB 216 is a good first step, the Governor realizes more work is necessary to provide long-lasting property tax relief to South Dakotans. An interim task force on property tax reduction will begin this summer. Governor Rhoden has asked former State Representative Kirk Chaffee (and former Meade County Director of Equalization) to be his designee on this task force and will bring forward his Homeowner Property Tax Relief proposal. More information on the Governor’s proposal can be found here.

South Dakota has moved up three positions to rank 46th in average teacher salary in the United States.

The NEA Rankings and Estimates report for the 2023-24 school year, lists South Dakota's average teacher salary at $56,328 – an increase from last year’s average salary $53,153 – and the ranking of 46th is the highest South Dakota has reached in the report.

The jump in ranking follows three years of significant investment in South Dakota's public school funding formula, which included a 6 percent increase for the 2022-23 school year, 7 percent in 2023-24 and 4 percent this school year, all of which were above the statutory increase requirement of 3 percent.

“ASBSD is very happy to see the growth in average teacher and average starting teacher salary for South Dakota’s teachers,” ASBSD said in a statement to Dakota News Now, earlier this month.

“The investment made by the state in recent years is proving to be a good one for our very deserving South Dakota public school teachers.”

Public school districts did their part too in ensuring the dollars provided to them went to increasing average teacher and starting salaries while also meeting other costs and needs.

“We are appreciative of the work by many to reach these salary levels and encourage everyone involved in the process to continue to make strong investments in our public schools and teachers,” ASBSD said in its statement.

For the 2025-26 school year, public schools will receive a 1.25 percent increase in state aid.

Today (4/30), Governor Larry Rhoden announced the appointment of Dr. Tonia Warzecha and Greg Von Wald to the South Dakota Board of Education Standards.

“Our students are the future of our state, and they deserve the very best education to get into the career of their dreams,” said Governor Larry Rhoden. “Dr. Tonia Warzecha and Greg Von Wald will be tremendous additions to the Board of Education Standards, and they will continue to help set our students up for success.”

Dr. Tonia Warzecha is an experienced educational leader, spending more than 25 years of her career in education and over a decade in district and building-level leadership roles. She currently serves as Superintendent of the Dakota Valley School District. Prior to this role, Dr. Warzecha was the Director of Curriculum, Instruction, and Assessment for the Tea Area School District, overseeing curriculum development, assessment systems, and federal programs. In 2021, she was recognized as South Dakota’s Curriculum Leader of the Year. Dr. Warzecha has also served in a leadership role for the Area II Superintendents' Group and serves on several statewide education advisory boards.

“I am deeply honored by Governor Rhoden's appointment to the South Dakota Board of Education Standards,” said Dr. Tonia Warzecha. “This is a responsibility that I will approach with a commitment to high-quality education, fairness, and careful stewardship of our students' futures. I look forward to working collaboratively to uphold and strengthen South Dakota standards in a way that serves all learners and communities across our state.”

Dr. Warzecha holds a Doctor of Education and Specialist in Educational Administration from the University of South Dakota. You can find a picture of Dr. Tonia Warzecha here.

Greg Von Wald is the former President of Mitchell Technical Institute (MTI). He led the college through unprecedented growth, overseeing an enrollment increase of nearly 60%. Prior to his appointment at MTI, he served as CEO and General Manager of Golden West Technologies and Internet Solutions and CEO and owner of a telecommunications company in Aberdeen. Von Wald also has military leadership experience, having served as the head of the Operational Development Team and Faculty Member at the Marine Corps University. He was selected as part of the team that developed and implemented the Marine offensive plan during Operation Desert Storm.

“I would like to thank Governor Rhoden for his appointment to the Board of Education Standards,” said Greg Von Wald. “I believe in a well-rounded and challenging education for our children that encourages good character, solid principles, and a high ethical standard – keys to their and our country’s future success. I look forward to contributing to this goal.”

Von Wald served as the Executive Director of the Skilled Workforce Advocacy Council, where he developed a campaign plan that elevated the importance of technical education in South Dakota.

You can find a picture of Greg Von Wald here.