State law requires South Dakota education funding to increase annually at either 3% or the rate of inflation: whichever is less.
By this statute, it should have increased at 2.54% for the incoming year.
Within his $7.44 billion state budget proposal, however, Gov. Larry Rhoden presented a 0% increase to education funding for the 2027 fiscal year, attributing the conservative spending to flat statewide revenues and a “declining public school enrollment.” It was not just education, though, that faced this flat funding. The budget typically afforded to health care providers, as well as state employees, also remained stagnant.
“If it stays at zero, it’s truly not a zero,” said Sioux Falls School District (SFSD) Superintendent Jamie Nold. “Inflation was 2.54%, so we actually go backwards — it’s a loss. The cost of all the things that we deal with go up in price, yet our funding stays flat.”
This proposal comes after $3 million worth of cuts last year within the SFSD.
“If it continues to go at a cycle like this where we don’t even keep up the rate of inflation, we’ll have to look at much more significant reductions, which we hate to do. In the SFSD, we pride ourselves on being able to offer our kids more than any other district,” said Nold. “And we want to continue to do that. If we continue to not get funded at an appropriate level, it makes it very difficult.”
According to Nold, the district is considering another $1 million in cuts for this year. And, when funding is limited, programs, materials and opportunities are soon to follow. Districts around the state are put on the defensive, forced to make decisions in order to conserve financially.
“My expenses have increased in order just to function at Lincoln, just to run a building,” said LHS Principal Laura Raeder. “So, I have no doubt that money has increased, but has it kept up with what I need?”
From the daily necessities like copy paper, programs like Freshman Academy or student financial aid opportunities for ACT or AP tests, a lack of funding threatens opportunities at all levels. Under this proposal, teacher salaries will also stay stagnant.
“I can say that, as a public school educator, I feel that fiscal pressure personally, and it has affected my classroom and my students,” said LHS AP Human Geography teacher Regan Meyer. “It also sends a shockwave of uncertainty throughout every level of our district and its employees. At the end of the day, all we want is to feel like we are valued and worth investing in, because we know that our jobs are essential to ensuring the educational and occupational well-being of future generations.”
South Dakota currently ranks 46th in the nation with an average teacher salary of roughly $56,000.
“We are very lucky here at Lincoln with our teaching staff, but it does weigh on you after a while,” said Raeder. “The nature of the profession is to try to figure out ways to help. But at some point, there’s nothing else we can do. We have to continue to be funded in order to do our jobs. We’ve got to turn the lights on at some point in the day.”
According to Dr. Raeder, the number of students pursuing education following graduation is also dropping.
“I’m a third-generation teacher and pretty proud of that,” said Raeder. “But I’m not sure there’ll be a fourth in my family, as much as we love it.”
In his proposal, Rhoden also outlined an increase in the percentage of funds allocated to the state’s reserve (a “rainy day fund”). This jump — from 10% to 12.5% — accounts for roughly $70 million. Last year, the state placed $63 million in the same reserve.
“They’re saying, ‘These are tough times right now, we’re gonna have to give 0%.’ Well, this is maybe the time we should be drawing some of those dollars out,” said Nold. “It doesn’t make sense to continue to pad all these reserve dollars and starve the public schools. And so the question comes in: when does it rain?”
While these types of conversations start in Pierre, it is not where they end. The SFSD has made efforts to get legislators involved at the actual schools, inviting them to experience and be a part of the work.
“Just go to your local school and tour. Go be with the kids and see what lunch looks like. See what recess looks like. Everyone is working really hard to help the kids — just come and witness it or be a part of it,” said Raeder. “I still have faith that through the process in Pierre, we’re going to get funded. I haven’t given up hope yet.”
