HB 1251

 26.437.23  101st Legislative Session  1251
                                        2026 South Dakota Legislature
                                                House Bill 1251
 Introduced by: Representative Mulder
1 An Act to create the community-based providers methodology supplement fund,
2create the target teacher salary supplement fund, and provide for the transfer
3of certain unobligated cash balances to the fund.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
5 Section 1. That a NEW SECTION be added to chapter 13-13:
6There is created in the state treasury the target teacher salary supplement fund.
7     The fund consists of moneys specified for deposit in the fund pursuant to § 4-7-32. The
8     Department of Education shall administer the fund. The purpose of the fund is to enable
9     an increase to the target teacher salary, as set forth in § 13-13-10.1.
10The department, as part of the annual budget submission, in accordance with § 4-
11     7-7, shall submit a budget request utilizing money from the fund to provide an increase
12     in the target teacher salary, as set forth in § 13-13-10.1.
13Interest on moneys credited to the fund must remain in the fund.
14Expenditures from the fund must be budgeted through the general appropriation
15     bill.
16 Section 2. That a NEW SECTION be added to chapter 28-22:
17There is created in the state treasury the community-based providers methodology
18     supplement fund. The fund consists of moneys specified for deposit in the fund pursuant
19     to § 4-7-32. The Department of Human Services shall administer the fund. The purpose
20     of the fund is to enable an increase in the rates payable to the types of community-based
21     providers listed in § 28-22-6, in order for the rate methodology of each provider to be
22     closer to one hundred percent of the methodology established in chapter 28-22.
23The department, as part of the annual budget submission, in accordance with § 4-
24     7-7, shall submit a budget request utilizing money from the fund to provide a uniform
                                                                                 Underscores indicate new language.
                                                                               Overstrikes indicate deleted language.
 26.437.23  2  1251
1    increase in rates for community-based providers and specify the percentage of
2    methodology each community-based provider is to be at with the change.
3Interest on moneys credited to the fund must remain in the fund.
4Expenditures from the fund must be budgeted through the general appropriation
5    bill.
6 Section 3. That § 4-7-31 be AMENDED:
74-7-31. There is hereby established within in the state treasury the budget reserve
8    fund. Expenditures from the fund may occur only by special appropriation of the
9    Legislature and may only redress unforeseen expenditure obligations or unforeseen
10    revenue shortfalls, as may constitute an emergency pursuant to S.D. Const., Art. III, § 1.
11 Section 4. That § 4-7-32 be AMENDED:
124-7-32. The transfer of all prior year unobligated cash must occur in accordance
13    with this section:
14    (1)      On July first of each fiscal year or at such the time that the prior fiscal year general
15fund ending unobligated cash balance is determined, the commissioner of the
16Bureau of Finance and Management shall transfer all prior year unobligated cash,
17up to an amount equal to equaling ten percent of the general fund appropriations
18from the general appropriation act for the prior fiscal year, into the budget reserve
19fund. In no event shall the The cash balance in the budget reserve fund be greater
20than may not exceed ten percent of the general fund appropriations from the
21general appropriation act for the prior fiscal year.;
22    Expenditures out of the budget reserve fund shall only be by special appropriation of the
23Legislature and shall only redress such unforeseen expenditure obligations or such
24unforeseen revenue shortfalls as may constitute an emergency pursuant to S.D.
25Const., Art. III, § 1.
26    (2)      If any unobligated cash balance remains after the requirements of subdivision (1)
27are met, the commissioner must:
28(a)    Transfer thirty percent of the remaining balance to the community-based
29providers methodology supplement fund, created in section 2 of this Act;
30(b)    Transfer thirty percent of the remaining balance to the target teacher salary
31supplement fund, created in section 1 of this Act; and
32(c)    Transfer forty percent of the remaining balance to the general revenue
33placement fund, created in § 4-7-45.
                                                                                  Underscores indicate new language.
                                                                                Overstrikes indicate deleted language.
26.437.23  3  1251
1 Section 5. That § 4-7-39 be REPEALED.
2The commissioner of the Bureau of Finance and Management shall transfer any
3    unobligated cash remaining after the transfer into the budget reserve fund as required by
4    § 4-7-32 into the general revenue replacement fund if the amount in the general revenue
5    replacement fund does not exceed fifteen percent of the general fund appropriations in
6    the General Appropriations Act for the previous fiscal year.
                                                                          Underscores indicate new language.
                                                                        Overstrikes indicate deleted language.