Sioux Falls School District adopts $342.8 million tax-supported budget, certifies levies

The Sioux Falls School District board voted to adopt the 2026 tax-supported budget and certify levies during its July meeting, approving a tax‑supported budget totaling $342,800,000 and authorizing related expenditures.

Business Manager Todd Veek told the board the tax‑supported total includes a general fund budget supported by property taxes along with special-education, capital‑outlay and bond‑redemption funds. He said the district budgets a use of fund balance of $3,200,000 for fiscal 2026 and is planning additional efficiency reductions in subsequent years.

Veek summarized the district’s four discussion points: the budget development process, a financial overview, tax impact and the specific actions requested of the board. He said the district cut roughly $3,000,000 in ongoing costs related to the expiration of COVID funding and is planning a projected drawdown of $3,200,000 this year. “We’re expecting a $3,200,000 drawdown this year,” Veek said. He also described a five‑year plan that anticipates the district’s fund balance reaching a low of about 8.2% before modestly recovering.

Veek told the board the district’s total tax‑supported request includes: general fund items (general‑education and operations), an $8,200,000 capital transfer, capital outlay of about $41,600,000, special education at about $67,000,000 and bond redemption at about $12,300,000. He said enterprise funds (for example, child nutrition) total roughly $114,000,000 and are supported by fees rather than property taxes.

On state aid and salaries, Veek said the legislature provided a 1.25% increase in state aid for the upcoming year while negotiated salary increases for district employees averaged about 1.875%; the board added an additional 0.5 percentage point to that negotiated increase. Veek noted that “over 80% of our total expenses in the general fund is salaries and benefits,” and said mismatches between state aid growth and salary pressure have been a long‑standing challenge.

Board discussion touched on contingency planning if expected federal dollars do not arrive. Veek said positions funded by federal allocations would be among the first considered for cuts if those dollars are not received, though turnover and hiring timing could affect how any reductions are implemented.

The board motioned to adopt the 2026 budget, certify the levies to the county auditors and authorize the outlined expenditures; the chair called for the vote and the motion carried.

The district emphasized it is planning for a stable fund balance in the mid‑to‑high single digits percentage over the coming years, and that future budget cycles will begin earlier to attempt to limit staffing impacts from further revenue shortfalls.