MITCHELL, SD (Mitchell Now) — A bill that would change how South Dakota calculates annual increases to K-12 education funding advanced out of the House Education Committee on Monday and now heads to House Appropriations.

House Bill 1205 would revise the state’s “index factor” so yearly K-12 funding increases would be set at inflation or 3%, whichever is greater. Current law caps increases at 3% or inflation, whichever is less.

Education groups supported the measure. Rob Monson of School Administrators of South Dakota told lawmakers the change would send an important message to teachers, saying the “optics” of changing a single word in statute from “less” to “greater” matters for showing educators they are valued.

Some committee members raised concerns about balancing school funding with other budget priorities. Rep. Kathy Rice, R-Black Hawk, questioned whether a 3% floor is sustainable over time, warning it could put education funding “out of balance” with other needs.

After a motion to send the bill with a “do pass” recommendation failed, the committee voted 8-6, with one member excused, to send HB 1205 to House Appropriations without recommendation.