Rapid City Area Schools board adopts 2026 budget, separates federal programs into new funds

The Rapid City Area School District Board of Education voted to approve the district's fiscal year 2026 budget at its annual meeting following a public hearing and discussion of staffing, special-education spending and capital needs.

Business Manager Mr. Sasse said the district's strategy for the budget was to "continue to meaningfully increase employee compensation," reduce other areas to offset that increase, and to take "a more aggressive and intentional approach to capital outlay budgeting" so more resources flow into facilities.

Board members said the board had reviewed the preliminary budget and the final plan before voting. During the discussion the board and staff emphasized three elements: separating federal grants and programs into dedicated funds rather than including them in the general fund or special-education fund; directing more capital outlay dollars toward facilities work; and pursuing pay increases to address recruitment and retention.

Mr. Sasse explained the accounting change will make structural analysis easier by moving federal programs into their own funds. That shift makes the general fund appear smaller from preliminary to final, he said, but the district's grand total budget remained unchanged between the preliminary and final presentations.

The board also discussed special-education spending. A board member asked whether underspending in the special-education fund over recent years was driven by staffing shortages; Mr. Sasse replied, "That's absolutely accurate." He said the district has intentionally planned a spend-down of reserves in that fund and that the success of the plan will depend largely on hiring.

Budget documents presented to the board showed the general fund with a modest shortfall projection of roughly 2.8 percent; Mr. Sasse and several board members said historical spending trends (mid-90s percentage of budget) make an actual deficit less likely. Trustees also discussed the Rapid Valley Elementary expansion, which staff estimated in presentations at about $14,000,000; the board said the project would be added to the capital budget once designs and more detailed estimates are complete.

After discussion, the board approved the fiscal year 2026 budget, then took separate votes to approve publication of budget changes and to file the tax-levy request required under state law.

Votes at the meeting on budget-related motions were taken by voice or roll call as indicated in the minutes. The board approved the FY26 budget and related publication and tax-levy motions during the same meeting.

The district will monitor enrollment closely during the year, Mr. Sasse said, because changes in student counts remain the single biggest variable affecting revenue and long-term budget outcomes.