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Rapid City Area Schools warn enrollment decline and state formula could cut state aid by roughly $2.2 million
Summary
Superintendent Dr. Thompson and the district chief financial officer told the board the district faces long-term enrollment declines, a large rise in homeschooling, and a projected $2.19 million drop in state aid that could shrink general fund revenue about $1.8 million for FY27 if current assumptions hold.
Superintendent Dr. Thompson and the district chief financial officer warned the Rapid City Area School District 51-4 board that long-running enrollment declines, combined with how South Dakota's state aid formula works, are likely to reduce state aid and tighten the district's budget.
Dr. Thompson told the board enrollment has fallen about 1,900 students since 2014 and noted a substantial rise in families identifying as homeschooling: "It has grown from 541 students in 2016-17 to 1,839 students in 2026," he said, adding that kindergarten enrollment has dropped from a high of 1,117 in 2017 to 814 in 2025. He cautioned that those state-reported homeschool counts can be imperfect because families need only file once.
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