South Dakota House Bill HB1216

South Dakota 2024 Regular Session

• Introduced: 1/31/24
• Refer: 1/31/24

Caption

Create the local assistance fund and to provide for the transfer of certain unobligated cash balances.

Impact

The implementation of HB 1216 is expected to have a significant impact on state laws regarding budget management and local funding. By mandating that excess cash in the state budget be transferred into the local assistance fund, the bill provides a structured approach to distributing financial resources. Specifically, 25% of the fund will support school districts based on enrollment percentages, 50% will be allocated to counties according to population estimates, and 25% will assist municipalities also based on population figures. This targeted distribution aims to enhance funding for education and local governance.

Summary

House Bill 1216, introduced by Representative Mills, aims to create the local assistance fund within the state treasury. This fund is designed to enhance financial management by ensuring that unobligated cash balances are allocated efficiently to support municipalities, counties, and school districts. The legislation revises existing laws concerning the budget reserve fund to facilitate the transfer of excess cash to the new local assistance fund, which is continually appropriated for essential public services.

Contention

While the bill has received support for its financial structure, there are notable points of contention among stakeholders. Critics may argue that entrenching the local assistance fund within state law could lead to greater state control over local finances, potentially undermining the autonomy of municipalities and schools in managing their budgets. Conversely, proponents advocate that the bill ensures much-needed funding for local entities and could provide a stable source of financial support in times of fiscal uncertainty.