Rapid City district warns 0% state funding proposal and declining enrollment could cut millions from budget
Summary
Superintendent and CFO told the school board the governor’s proposed 0% K‑12 increase and falling enrollment mean sharp state aid drops; the district estimates a potential $1.8–2.2 million hit to its general fund and urged advocacy with legislators.
Superintendent Dr. Thompson and Chief Financial Officer Coy Sasse told the Rapid City Area School District 51‑4 board that the governor’s budget proposal — a “0% increase in funding for K‑12” — combined with lower student counts could meaningfully reduce state aid for the district.
Dr. Thompson said the governor’s proposal, if enacted, would result in a statewide decline of roughly $12.8 million in K‑12 funding and stressed the local impact: “Rapid City area schools would lose about $2,200,000 in state aid under this proposal or $1,800,000 in general fund revenue,” he said. The superintendent framed the proposal as a starting point for negotiations and urged board members and community members to educate legislators about the district’s needs.
Sasse outlined how the state’s ADM (average daily membership) process determines state aid. He reported the district’s 2025 fall ADM was 11,948 — “just over a 2% decrease from the 2024 student count of 12,195” — and explained the district used a conservative estimate of 11,770 ADM for next year’s state‑aid projection to avoid a large mid‑year reconciliation shortfall.
Why it matters: South Dakota’s state aid formula is enrollment‑driven. Board members were told that, even with targeted increases elsewhere in the formula, declining enrollment can reduce the size of the state‑funded “cup” of resources and leave districts unable to cover rising costs for buses, utilities and staff compensation. Dr. Thompson and Sasse emphasized that flat funding would make it difficult to increase teacher pay or cover inflationary cost pressures.
Board reaction and next steps: Trustees asked why statutory language mandating inflationary increases (referenced in the meeting as a state statute) has sometimes not been reflected in appropriations; administrators said changes in law or appropriations practice can leave statutory targets unmet. The board’s legislative and finance committees reported outreach plans, including contacting legislators about an average‑enrollment bill and encouraging public participation at events such as Public Education Day at the Capitol. Dr. Thompson said the district will continue producing and sharing data to inform legislative conversations.
The board did not take formal budget votes at this meeting; administrators said further, more detailed state‑aid and budget analysis will return to the board as the legislative session unfolds.
