Bill could allow schools to keep more in reserves

PIERRE (CNS) – Schools would be able to keep more money in reserve funds under a bill passed in the Senate Feb. 7.

Senate Bill 164 would increase from 20 to 35 percent the amount of reserve funds a school can keep, State Sen. Larry Diedrich, R-Elkton, bill sponsor, said.

The increase in reserve funds would provide stability for schools in the future, State Rep. Kent Juhnke, R-Vivian, said.

Stacy Krusemark of the Department of Education and Cultural Affairs said that raising the cap would allow schools to bank more money than they would spend on students. He said the state is increasing funds given to education because it wants to see more money spent on children, not more money sitting in reserves.

Senate Bill 113, which failed 10-24 in the Senate Feb. 7, was introduced by State Sen. Kloucek, D-Scotland, and would increase the reserve fund from 20 percent to 30 percent.

Diedrich’s bill passed 31-4. Senate Bill 164 now moves to the House of Representatives for consideration.

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