This is truly a fundamental question concerning our schools in Rapid City. It boils down to the State Funding formula and the cuts made in past decade. In 1997 South Dakota began funding schools based on a Per Student Allocation (PSA) – or the cost it takes to educate a student. At that time the legislature determined the baseline Per Student Allocation.
Each year the legislature votes to increase funding based on CPI or 3% which ever is less. CPI is the consumer price index as set by the federal government. It is a measure of inflation. SD just voted to raise the minimum wage by this same index or CPI in the last election. Prior to 2011, the PSA was increased annually at an average rate of 3%. In 2011, the SD Legislature gave a 0% increase. The following year the PSA was cut by 8.6%, as was the entire State budget. At this same time, the state investment in K-12 education has been decreasing as a portion of the state general fund budget for the last 10 years.
As a result 66 of 151 schools districts in South Dakota have taken advantage of an option in the funding statue to “opt-out” of tax levy limitations. This opt-out is for the General Fund or the operating fund segment of the School District’s budget only. With an opt-out Rapid City Area Schools can generate revenue to meet needs above the State Allocation. All that revenue stays in Rapid City.
Because the District must operate under a balanced budget, without an opt-out, cuts will continue to be made annually. The District estimates that the equivalent of 60-70 people and the programs they run will have to be cut each year, even if the PSA is increased by 3% annually. That is close to 300 jobs over 5 years.
Rapid City has a choice to make about how our schools will look into the future. The time to make that choice is today. Talk to your friends and family and support the opt-out resolution. By not taking this issue to a public vote, we can move forward with the business of educating our children. Choose not to sign a petition.
For more information see Links.
Each year the legislature votes to increase funding based on CPI or 3% which ever is less. CPI is the consumer price index as set by the federal government. It is a measure of inflation. SD just voted to raise the minimum wage by this same index or CPI in the last election. Prior to 2011, the PSA was increased annually at an average rate of 3%. In 2011, the SD Legislature gave a 0% increase. The following year the PSA was cut by 8.6%, as was the entire State budget. At this same time, the state investment in K-12 education has been decreasing as a portion of the state general fund budget for the last 10 years.
As a result 66 of 151 schools districts in South Dakota have taken advantage of an option in the funding statue to “opt-out” of tax levy limitations. This opt-out is for the General Fund or the operating fund segment of the School District’s budget only. With an opt-out Rapid City Area Schools can generate revenue to meet needs above the State Allocation. All that revenue stays in Rapid City.
Because the District must operate under a balanced budget, without an opt-out, cuts will continue to be made annually. The District estimates that the equivalent of 60-70 people and the programs they run will have to be cut each year, even if the PSA is increased by 3% annually. That is close to 300 jobs over 5 years.
Rapid City has a choice to make about how our schools will look into the future. The time to make that choice is today. Talk to your friends and family and support the opt-out resolution. By not taking this issue to a public vote, we can move forward with the business of educating our children. Choose not to sign a petition.
For more information see Links.