Department of Education outlines FY2026 budget, highlights literacy grant and teacher-recruitment efforts

The South Dakota Department of Education on Monday presented its governor—s FY2026 budget recommendation and a package of initiatives focused on literacy, teacher recruitment and retention, social studies implementation and student engagement.

Secretary of Education Joseph Graves told the Joint Committee on Appropriations the total recommended DOE budget is about $1.013 billion, most of which passes through to districts; the agency—s operating budget is roughly $47 million.

Graves highlighted the department—s statewide literacy work grounded in the Science of Reading (SOR). "Literacy is the foundation for all learning," Secretary Graves said, describing SOR as a five-part approach that emphasizes phonemic awareness, phonics, vocabulary, fluency and comprehension. The department said a federal award totaling roughly $54 million will support local district implementation; DOE requested about $13.275 million in federal authority for year two of that grant and noted the state previously provided $6 million to support teacher training.

The presentation covered several other priorities: a request for a 1.25% inflationary increase to K-12 state aid and several program increases and decreases across DOE. The department proposed a $4 million Education Savings Account appropriation (about $1 million for administration and $3 million for family accounts), an increase of $30,000 for the JAG (Jobs for America's Graduates) affiliation fee (to $55,000 annually) to sustain national network membership, and a small general-fund increase to support the dual-credit technology system used to manage reduced-tuition billing for students enrolled in college courses.

On teacher recruitment and retention, Graves reviewed an apprenticeship pathway that enrolls paraeducators and others to complete teaching credentials. The department reported 51 districts participated in cohort 1 and 55 districts in cohort 2; cohort 1 approved roughly 90 participants (about twice that number applied), cohort 2 approved about 85. Secretary Graves said seven cohort-1 participants have already completed and entered teaching and the department expects about 56 more to complete in May. The department also relaxed student-teacher payment rules and expanded advanced student-teacher permits.

Graves said attendance and chronic absenteeism remain concerns. The department reported an elementary/middle attendance rate of about 92% before the pandemic and about 87% in 2023-24 (a drop of roughly five percentage points). Federal ESSER-funded chronic absenteeism pilots ran in several districts; DOE said it compiled findings from those pilots to guide statewide practice.

The department—s JAG program served 566 students this academic year, according to Graves; the department described retention and post-high-school outcomes for JAG participants as well above state averages and requested ongoing funding to continue expansion.

Graves also described a governor-recommended reduction package that includes proposed cuts to the state library (a reduction of $1,030,267 in ongoing general funds and about $1.399 million in federal authority) and other program adjustments. He said the Cultural Heritage Center renovation remains a special-appropriation request of $1.5 million and that its final completion is expected in spring 2026 if funded.

Committee members asked multiple follow-ups about math instruction research, the role of the Common Core in state standards, the reach of the literacy federal grant, participation rates for social-studies professional development, district participation in apprenticeship cohorts and the accuracy of vacancy counts. Graves said long-term vacancy data are maintained by the Associated School Boards of South Dakota and estimated roughly 200 vacancies statewide, but noted district reporting practices can make that figure imprecise.

Procedural notes: the committee approved minutes from its Feb. 3 meeting by voice vote after a motion from Senator Kent Juhnke (mover identified in the hearing as Senator Lapka) and a second from Representative Monke; the committee later adjourned on a motion from Senator Vojta (motion recorded as from Senator Voda in minutes) seconded by Representative May; both motions carried.

Why it matters: the Governor—s recommended budget shapes agency authority and pass-through funding to districts. The literacy grant and investments in teacher pipelines aim to affect classroom instruction statewide, while the proposed state-library reduction prompted public comment (see separate article on library testimony). Ending DOE—s presentation, members signaled follow-up questions and requested more data on specific program outcomes.