PIERRE — South Dakota’s public school districts won’t be receiving an inflationary increase next year in their per-student funding from state government and local property taxes.

But the general-fund tax levies for schools will be going down statewide on agriculture property, owner-occupied home and other property.

The decisions came as the Legislature wound up the main run of the 2010 session Friday.

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It will be the first time schools won’t be getting more state aid since at least 1995, when the new per-pupil approach was adopted that guaranteed an annual increase equal to the rate of inflation, up to 3 percent.

Stripping the increase is like taking the paddles from a canoe trying to go upstream, Rep. Bill Van Gerpen, R-Tyndall, said. “And we keep shouting to schools, ‘Keep paddling! Keep paddling! Keep paddling!”

The Legislature officially broke away from the formula with Friday’s votes. Citing state government’s deficit problems, lawmakers gave no increase rather than the 1.2 percent that would have been owed.

That means base funding per student stays at $4,804.60 instead of $4,862.26. The decision saved state government approximately $4 million and property-tax payers more than $3 million.

Senators voted 18-17 for zero increase, and the House of Representatives did the same 43-27.

“Nobody likes this. We’re not having fun here,” House Republican leader Bob Faehn of Watertown said.

Faehn noted that the Legislature gave extra money to school districts in previous years when it could be found.

House Democratic leader Bernie Hunhoff of Yankton said there will be an opportunity to address the funding question again on March 29, when lawmakers return for the final day of the 2010 session to handle state government’s 2011 budget.

“This decision today is our biggest shortcoming of the session,” Hunhoff said.

The Legislature’s action to reduce school-tax levies was a rejection of Gov. Mike Rounds’ proposal to shift about $4 million of state responsibility for school aid onto property owners.

Senate Republican leader Dave Knudson said this is the second year in a row that the governor attempted it and the Legislature refused him.

The relationship will stay at 43.5 percent from property taxes and 56.5 percent from state government to pay for per-pupil funding.

Because total taxable value of property increases each year, the school general-fund levies routinely drop somewhat, depending on changes in pupil enrollment.

Sen. Jim Peterson, D-Revillo, said enrollment is up about 600.

The school levy on agriculture land will decrease to $2.544 per $1,000 of taxable value from the present $2.573. The levy on owner-occupied homes will drop to $3.965 per $1,000 of taxable value from the current $4.042. The levy on other property will decline to $8.491 per $1,000 of taxable value from the current $8.656.

Peterson explained the ag levy is going down proportionately less than the owner-occupied and other-property levies.

He said that is because of an agreement reached when the Legislature switched from a market-sales system to productivity approach for determining agricultural property values.