Since 2016 school districts that receive state aid to education were required to report its average teacher compensation to the School Finance Accountability Board. After demonstrating that 85 percent of the initial increase was targeted to teacher salaries, school districts were SIMPLY required to maintain an average teacher compensation level at or above their FY 2017 benchmark to avoid penalties. If a district fell below 2017- it risked losing a portion of its state aid funding. It should be noted that “teacher compensation” for accountability purposes is the total salaries and benefits the teachers in a district receive.
The accountability for FY19-FY24 is established by Statute 13-13-73.6. The average total compensation for districts cannot fall below the average total compensation in FY2017. More information on District Accountability Targets is available in the downloads section of this toolkit.
Click here for additional information on the establishment of the law in 2016; and how the law impacts the district funding formula, reserve fund balances, pension levy, capital outlay flexibility, and local effort revenues.
Get your questions answered
Check out the South Dakota Department of Education's FAQ document on the K-12 funding formula.
History of Average Teacher Salary and Compensation 2017-2023
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