As South Dakota lawmakers near the end of the legislative session, school funding is a big item they still need to resolve.
Educators hope the Legislature doesn’t “go small” on any potential increase, since classroom leaders said they are already being asked to do more with less. Funding proposals looked bleak going into 2026 but recent revenue optimism led to a nearly 1% increase on the table for education – which does not align with a hike of around 3% mandated by state law.
Stephanie Hageman, president of the South Dakota Education Association, said based on talks with union members from around the state, districts are tightening their purse strings. In some cases, possible cuts could range between $1 million and $3 million, which she argued would have a detrimental effect on learning.
“We’re cutting instructional coaches. We are cutting gifted and talented programs. We’re cutting intervention programs,” Hageman outlined. “It’s just really difficult to offer our kids what they need with less and less and less money.”
The 3% rule goes back three decades and calls for an annual increase or an inflation adjustment, whichever is lower. But in recent years, lawmakers have worked around it based on the budget outlook. Hageman stressed they would like to see the state move closer to the mandate, citing escalating health insurance rates for school staff. Gov. Larry Rhoden said last month his push for 1% would mean the state does not have to pick winners and losers in major areas of the budget.
Hageman emphasized the current budget situation is renewing concerns about the downward pressure on teacher salaries and how hard it is to recruit them. She pointed out there are still too many unfilled openings around the state for jobs which can be filled.
“We just don’t have the pool of educators going into the field anymore,” Hageman explained. “Or they’re only lasting a year or two, or less than five.”
Beyond school funding, state lawmakers still have to make a final call on thorny issues like property tax relief. The Legislature faces a March 9 deadline for a bill or joint resolution to pass both chambers.
