Sioux Falls School Board adopts budget with 3.3% reduction in homeowner tax bill

The Sioux Falls School District 49-5 held a significant school board meeting on July 14, 2025, focusing on the adoption of the 2026 budget and the implications of federal funding uncertainties. The meeting commenced with a review of the proposed budget, highlighting strategic reductions made in response to the waning impact of COVID-19. The district aims to maintain a stable fund balance, projecting a modest decrease of around 8% over the next few years.

Key discussions included the district's approach to salary sustainability amid limited state funding. Although the district did not receive a substantial increase from the state, an additional half percent was negotiated to remain competitive in salary offerings. Furthermore, the board announced a 3.3% reduction in the average homeowner's tax bill, reflecting the district's commitment to fiscal responsibility.

A critical point raised during the meeting was the potential impact of withheld federal funds. The district's contingency plan indicates that if these funds do not materialize, it would necessitate automatic budget cuts, potentially leading to a deficit. The board acknowledged that over 80% of the budget is allocated to salaries and benefits, meaning any cuts would likely affect personnel. However, the district noted that turnover could mitigate the impact on individual employees.

New board member Mr. Veek expressed his support for the budget process, commending the thoroughness of the discussions. He emphasized the importance of focusing on student benefits while navigating financial challenges. The board also discussed plans to engage with teacher groups earlier in the budgeting process for the following year.

The meeting concluded with a motion to adopt the 2026 budget and certify the levies, which passed unanimously. The board's commitment to financial responsibility and transparency was evident throughout the discussions, setting a clear path for the district's fiscal future.