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District CFO warns state aid could fall $2.2 million despite proposed teacher-pay increase
Summary
The district's chief financial officer told the Rapid City Area School District 51-4 board that, under current assumptions, general state aid would fall about $2.2 million for FY26 even if the legislature raises the target teacher salary; board members asked questions but took no formal action.
The district's chief financial officer told the Rapid City Area School District 51-4 board that, if current legislative and local assumptions hold, the district would receive about $2.2 million less in general state aid next year.
The warning came during the finance report at a board meeting when the CFO walked through the state aid formula, how it interacts with enrollment and property valuation, and how a legislated increase to the formula's target teacher salary can produce the appearance of more state funding without enlarging the district's actual state aid payment.
The board heard that state aid accounted for about $37,800,000 of the district's roughly $106.3 million general fund this fiscal year (about 35%). The CFO said that, under the scenario shown to the board (including the governor's recommended 1.25% increase to the target teacher salary), the district would be paid about $35,600,000 in state aid for fiscal 2026 ' a year-over-year decline of roughly $2,200,000.
Why it matters: state aid in…
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