Highlights & Insights
by Heath Larson
ASBSD Executive Director
Property Tax Cut Proposal from Rep. Venhuizen:
- Cut property taxes for SD homeowners by an average of 35%.
- Do this by setting the levy for owner-occupied homes for general education and special education at $0. Currently, the mill levies combined are $4.167.
- This means that for every $100,000 of value, a homeowner will save $416.70.
- Need replacement revenue to cut property taxes and plan would be to raise state sales tax from 4.2% to 5.0%, which estimated to raise $280 million, all of which would be committed to property tax relief.
Recently, Representative Tony Venhuizen released information regarding a property tax plan that he and Senator Randy Deibert will bring forth this legislative session.
While we study and learn more about this proposed plan and its impact in the state and on our K-12 public schools, there will be numerous questions. One, in particular, will be regarding funding education if/when the sales tax lags.
As is the case this year in South Dakota, the cup isn’t as full with an extremely lean state budget. We will pay close attention to this during the upcoming legislative session.
From all of us at Associated School Boards of South Dakota, we wish you a joyous holiday season!
At the Fiscal Year 2026 budget address, Gov. Kristi Noem proposed an Education Savings Account, which is simply a different term for a school voucher program, to be introduced during the 2025 legislative session.
This proposed program will start by using $4 million in public taxpayer dollars to implement the school voucher program and it won’t stop at that figure as during the address Gov. Noem said the goal was to expand the school voucher program before it has even been adopted and that growth with inevitably take away millions of dollars from South Dakota’s public schools.
ASBSD opposes the school voucher proposal based on our Standing Position: Non-Public Schools or Alternative Education Funding or Establishment of New Non-Public School Systems, which was approved at last month’s Delegate Assembly.
In addition, Gov. Noem said the state’s “revenue picture has tightened up this year” and that’s reflected in revenue collections being more than $24 million behind projections. The proposed increase in state aid for public schools is 1.25 percent, which results in $12.8 million in new money for public education. With revenues and the state budget getting tighter it will be imperative for us to advocate together for every available dollar for public schools.
To advocate together, we need many members appointed to the ASBSD Legislative Action Network (LAN), which is designed to activate school leaders to communicate to legislators our legislative positions. The LAN appointment process is online and can be completed through the following steps:
- Click here to access the LAN Appointment form;
- Complete the form;
- Adding multiple individuals from your district for LAN is similar to how a new paragraph is added in a document.
- Click the submit button;
- Should you need to add another board member after you've submitted, click the "Submit another response" link.
If your district has appointed LAN members or you have signed up as a LAN member, please disregard, but we need as many LAN members as possible this session to share our advocacy message.
LAN members will periodically be contacted by ASBSD during legislative session asking them to contact their legislator(s) and advocate for or against specific legislation. Each board member designated as a LAN member earns 25 ALL points for their local board.
If you have questions or need assistance, please contact Director of Communications Tyler Pickner at tpickner@asbsd.org or at 605-773-8382 or 605-881-3791.
by Tyler Pickner
Director of Communications
During the Fiscal Year 2026 budget address, Gov. Kristi Noem proposed an Education Savings Account, which is simply a different term for a school voucher program, to be introduced during the 2025 legislative session.
The voucher proposal would $4 million in public taxpayer dollars used to start the program and the expressed goal for further expansion and more funding. The proposed school voucher program would be detrimental to our public schools.
ASBSD has drafted a sample school board resolution opposing the proposed school voucher program for your school board’s consideration. You can download the resolution by clicking here.
If your board chooses to pass the resolution, please share that information with ASBSD.
In addition, there are two documents from our webinar in November covering the damaging effects of school vouchers that you can download:
If you need any further information or have questions, please don’t hesitate to contact ASBSD Executive Director Heath Larson at hlarson@asbsd.org or at 605-773-2503 or 605-222-6043 or Director of Communications Tyler Pickner at tpickner@asbsd.org or at 605-773-8382 or 605-881-3791.
by Holly Nagel
ASBSD Chief Financial Officer & Director of ASB Protective Trust Services
As we close out 2024, Associated School Boards Protective Trust is planning for the next year, both calendar and fiscal year 2026. ASBPT staff have kept our members active in advisory committee meetings, ASBPT Board of Directors meetings and All-Member meetings and training.
ASBPT continues to partner with Eide Bailly for annual ACA training to districts in the health fund. Along with the annual training, ASBPT pays the fee for Eide Bailly to review each member districts 1094/1095 forms for coding accuracy prior to submitting to the IRS. With IRS penalties ranging from $310 - $4,460 per employee per year, and no longer shielded by “good faith”, the impact of incorrect forms can be financially detrimental to a district.
The ASBPT workers’ compensation members continue to practice safety which has resulted in minimal injuries. We expect the excellent loss history to result in a favorable renewal from our reinsurers. Along with health renewals, workers’ compensation renewals will be presented to members at the FY26 renewal meeting in March.
In the world of property, the US market continues to see large losses due to catastrophic events resulting in trillions of dollars. South Dakota is one of five states seeing the largest percentage of increase in social inflation, this has a direct influence on the liability market.
On December 12th, members met to review how these items affect not only South Dakota schools, but the global reinsurance market, and what ASBPT is doing to help insulate members from potential impacts. First dollar carriers have already begun to non-renew South Dakota schools, something ASBPT members do not need to worry about because ASBPT will continue to offer high loss members coverage.
Wishing everyone a safe and happy holiday season!
Contact Holly Nagel for resources provided by the Associated School Boards Protective Trust: https://asbsd.org/about/contact-us/.
