December 14, 1983

Mr. Maurice C. Christiansen 
Auditor General 
Department of Legislative Audit 
435 South Chapelle 
Pierre, South Dakota 57501

Official Opinion No. 83-46

Apportionment of Revenue

Dear Mr. Christiansen:

You have requested an official opinion from this office in regard to the following factual situation:

FACTS: 

Inconsistent procedures are being used by counties in the distribution and apportionment of certain revenue sources collected by the counties on behalf of school districts.  Some counties are apportioning these resources based on the current year tax levy to the individual funds of the school district, such as General Fund, Capital Outlay Fund, Bond Redemption Fund and Special Education Fund.  Other counties are crediting these resources only to the school district's General Fund.

Based upon the above facts you have asked the following question:

QUESTION: 

Which of the following revenue sources must be apportioned to all of the funds of the school district and which ones may be credited to the General Fund? 

(a)  Bank Franchise Tax (SDCL 10-43-77 
(b)  Rural Electric Company Tax (SDCL 10-36-10) 
(c)  Telephone Company Tax (SDCL 10-33-28) 
(d)  County Apportionment (SDCL 13-13-5)
(e)  State Fines (SDCL 23A-27-25; SDCL 13-13-4)
(f)  Transient Farmer Tax (SDCL 10-42-7) 
(g)  Tax Base on Public Shooting Areas (SDCL 41-4-8)
(h)  National Forest Lands (SDCL 41-16-15) 
(i)  Bankhead-Jones Farm Tenant Act (SDCL 13-14-3)

After reviewing each of the statutes providing for the apportionment of the various fund sources listed in your question, one can see that there is no provision for the apportionment of the money to a particular fund of the school district.  Rather, these statutes make clear that the county's only function is to deliver the money to the school district.  Therefore, it is my opinion that the answer to your question is that this money should be apportioned by the county to the school district's general fund.

Although you did not ask what is to happen to this money once it is placed in the school district's general fund, it is my opinion that this money can be transferred from the general fund to the particular funds of the school district only if there are surplus general funds.  SDCL 13-16-26.

Respectfully submitted,

Mark V. Meierhenry
Attorney General