RAPID CITY, SD – School funding remains one of the most misunderstood topics in the community, and local education leaders say that confusion often leads to frustration.

Coy Sasse, chief financial and operations officer for Rapid City Area Schools, says the biggest misconception is the assumption that rising property taxes automatically mean more money for schools.

“If there’s one thing I wish every taxpayer understood, it’s that just because your tax bill is increasing does not mean the district is adding new resources to its budget,” Sasse said.

Public schools are funded through a combination of local property taxes, state aid and federal dollars. However, those funding streams shift depending on enrollment and state decisions, which can create financial strain even when tax revenue rises.

Sasse explained that declining enrollment plays a major role in funding challenges. When student numbers drop, the state funding tied to those students also decreases, reducing overall resources for the district.

At the same time, aging school buildings are creating additional pressure. Many facilities in Rapid City were built decades ago and are now operating beyond their intended lifespan.

“We are injecting and investing money into buildings that their usable life is far past at this point,” Sasse said. “We could be making a much better investment with stakeholder dollars in new facilities and renovated facilities.”

District leaders say the cost of maintaining older buildings can be inefficient compared to newer schools. For example, Sasse noted that a large, modern building like South Middle School can cost roughly the same to operate as a much smaller, older facility due to energy efficiency improvements.

Beyond infrastructure, school officials emphasize that education funding impacts the entire community, not just families with children in school.

“If you want a vibrant, thriving community, the very best way to do that is to invest in the education system,” Sasse said.

Rapid City Area Schools is one of the largest employers in the region, and strong schools are often a key factor for businesses and families deciding to move to the area.

As discussions continue around future funding, facilities and potential bond projects, district leaders say transparency and community understanding will be critical.

For many, the goal is simple: ensure students have safe, modern learning environments while building a stronger future for the entire community.