Sioux Falls school board approves $356M budget for fiscal year 2026
The Sioux Falls School District Board of Education tentatively approved a budget for fiscal year 2026 on Monday night.
The full tax-supported fund budget includes more than $356 million in revenues and expenditures, with a majority from the general fund, including $232 million in general fund revenue and $235 million in general fund expenses.
District business manager Todd Vik noted this budget includes $3.1 million in budget cuts as federal pandemic relief funds expire. These cuts were previously discussed in work sessions on March 26 and April 2.
Board members voted to halve a $106,000 cut to the School Bus Inc. budget that was initially proposed in prior work sessions on the budget. That funding amount was originally given to SBI for pandemic-related costs from the Elementary and Secondary School Emergency Relief (ESSER) fund.
The remaining half of the SBI cut will likely be seen in the fiscal year 2027 budget. School board president Carly Reiter said she felt strongly that SBI was a good partner to the district and wanted to spread the cuts out over two years to allow them to adjust their hiring and attrition.
No public comments were heard on the budget during its hearing. Superintendent Jane Stavem noted the board will make a final vote approving the budget in July or August. Reiter noted committees for the fiscal year 2027 budget will start to meet in November.
Vik said future projected efficiencies – or future rates the district may have to cut by – include 1.5% in fiscal year 2027, 1% in fiscal year 2028 and half a percent thereafter.
More: Sioux Falls School District continues to weigh $3 million in budget cuts
Homeowners will see their school levy decrease by 17 cents in 2026, Vik projected, adding that the average school property tax bill for homes in the district is expected to drop 3.3% next year.
A 'budget message' attached to the budget notes that former Gov. Kristi Noem proposed a 1.25% increase in state aid to education that was adopted by the South Dakota Legislature.
'While this funding reality makes it difficult to raise teacher pay and support the growing needs of students, the Sioux Falls School District worked to build another fiscally responsible budget,' the message states. 'Public education is the backbone of strong communities, and, despite funding woes, the district is committed to providing the highest-quality education to all students.'
This article originally appeared on Sioux Falls Argus Leader: Sioux Falls school board approves $356M budget for fiscal year 2026
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