Chapter 43: South Dakota

In recent years the distribution of state funds in South Dakota’s school finance system has evolved, but funding sources have remained relatively consistent. The two primary funding sources for the state’s 149 public school districts are local property taxes and state funding through the state aid formula. In addition, schools receive funding from federal sources, local bonds issues, and other areas subsequently outlined.¹

Prior to 1995, the South Dakota legislature funded school districts through an expenditure-driven formula. The more a district spent, the more state funding it received. The funding formula was revised by the state legislature in 1995 and implemented in January 1997.