The South Dakota School Finance Accountability Board voted Monday to reject lawmakers’ call for full waivers of penalties against districts with excess cash reserves, extending a standoff over how to enforce state limits.
In November, the board recommended partial waivers for Frederick Area and Miller schools, each facing a 10% penalty—reductions of $9,265 and $7,474 in state aid for 2026. The Legislature’s budget committee had urged full waivers instead.
Board member Jim Terwilliger said the panel already chose a lenient approach but must “stick to principles.” With unclear rules and laws, the Department of Education’s legal team will review next steps.
Separately, the board agreed to lawmakers’ request for a financial review of the Agar-Blunt-Onida School District, which receives no state aid but has repeatedly appeared before the board.
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