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SB 106

modify the amount required to be set aside for extraordinary expenses incurred in providing special education programs.

2026 Regular Session Introduced by Roger DeGroot and 9 co-sponsors

SB 106 adjusts South Dakota's required special education expense reserves for school districts, balancing operational funding flexibility against financial risk management.

Signed by the Governor on 2026-03-30 S.J. 550
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Bill Summary · SB 106

Legislative bill overview

SB 106 modifies the statutory reserve amount that South Dakota school districts must set aside for unexpected costs related to special education programs. The bill has passed the House Committee on Appropriations with an amendment and is scheduled for further consideration. The specific dollar amount or percentage change is not detailed in the available action summary.

Why is this important

Special education funding is a significant budget item for school districts, and reserve requirements directly affect how much money districts have available for general operations versus emergency reserves. Changes to these thresholds can either provide districts financial flexibility or potentially create underfunding risks if reserves become insufficient for unexpected special education costs (such as due process hearings, unexpected student placements, or staffing emergencies).

Potential points of contention

  • Adequacy of reserves: Lowering reserve requirements might free up funds for current spending but could leave districts vulnerable if major special education expenses arise unexpectedly
  • District equity: Larger districts may absorb unexpected costs differently than smaller rural districts, potentially creating disproportionate impacts
  • Compliance concerns: Changes may affect districts' ability to meet federal special education mandates if reserves become too thin to cover legally-required services

Compiled from official sources — confirm details with the bill’s official record.

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