A proposal that would have required South Dakota voters to approve any public school district’s decision to opt out of state‑set spending limits failed Wednesday in the House, halting momentum behind the Senate‑passed measure.
Senate Bill 85 was defeated 29–38 in the House. Its House sponsor, Rep. John Hughes (R‑Sioux Falls), immediately signaled he would seek reconsideration, while the bill’s prime sponsor, Sen. Sue Peterson (R‑Sioux Falls), observed from the gallery.
An early attempt by Hughes to narrow the bill to apply only to districts with more than 2,500 students was rejected, foreshadowing the bill’s struggles.
Opponents—including Rep. Mike Stevens (R‑Yankton), a former school board member—argued that removing the opt‑out tool would limit districts’ flexibility. Supporters, such as Rep. Scott Odenbach (R‑Spearfish), countered that lawmakers must address South Dakota’s property‑tax pressures.
Rep. Erik Muckey (D‑Sioux Falls), who serves on the Joint Appropriations Committee, said districts turn to opt‑outs because state funding has not kept pace with needs. He added that while concerns vary by district, the current 20‑day window for petition signatures may need revisiting.
Rep. Terri Jorgenson (R‑Rapid City) urged passage, citing rising property taxes and arguing that taxpayers deserve a direct vote. Nearly half of school districts currently use opt‑outs, she said.
Other House Actions Wednesday
- HB 1095, to standardize candidate signature‑gathering periods for local elections, failed 31–38.
- HB 1124, creating a felony for trespassing in places of worship, failed 21–48.
- HB 1125, establishing a task force to study AI impacts on the state, failed 26–43.
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