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This analysis highlights increased state aid for education and the challenges in budget allocation in South Dakota.
South Dakota’s P–12 system serves 149 districts, prioritizing teacher salaries and school choice. Within the state’s $2.4 billion General Fund, education accounts for approximately 44% of total expenditure. For the 2025 fiscal year, P–12 state aid reached $725.5 million, a $9.3 million increase in expansion aid, while total higher education allocations reached $1.05 billion across all funding sources. Despite significant long-term growth, higher education’s share of the state budget declined for the first time since 2010. These trends reflect conservative tax utilization and alternative school programming.
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Plaine et al. (2026) studied this question.
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