Sioux Falls Schools Aim to Raise Teacher Pay Despite Budget Cuts

District explores strategies to increase salaries and maintain smaller class sizes amid $2 million in proposed reductions.

Apr. 3, 2026 at 5:10pm

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A repeating grid of brightly colored, high-contrast silkscreen images of a stack of textbooks, representing the essential role of education in the community.A bold, pop art-inspired illustration captures the vital importance of education funding and teacher support, even in the face of budget constraints.Sioux Falls Today

The Sioux Falls School Board is looking at options to increase teacher pay by 2.5% and maintain smaller class sizes, even as the district faces $2 million in proposed budget cuts. The district wants to focus on supporting teachers despite the need for cutbacks, including exploring changes to open enrollment policies, increasing federal Title 1 spending, and adding more elementary school positions.

Why it matters

The state legislature only allocated a 1.4% increase to education this year, falling short of the 3% or inflation increase codified in state law. Despite the budget pressures, the Sioux Falls School District is determined to prioritize teacher pay and smaller class sizes, recognizing their importance to the community.

The details

In addition to proposing a 2.5% teacher pay increase, the school board is exploring several strategies to keep elementary class sizes below 30 students. These include limiting open enrollment, increasing federal Title 1 spending for class size reduction teachers, and adding four more elementary positions in schools with the highest student-teacher ratios. The district is also looking to reduce its annual opt-out funding from $12 million to $11 million, returning more money to local taxpayers.

  • The school board is expected to vote on the budget decisions at its regular meeting on April 13, 2026.
  • The state legislature initially proposed a 0% increase to education funding, before allocating a 1.4% increase.

The players

Sioux Falls School Board

The governing body of the Sioux Falls School District, responsible for making decisions about the district's budget and priorities.

Nan Kelly

The president of the Sioux Falls School Board, emphasizing the district's focus on supporting teachers despite the need for budget cuts.

Elizabeth Duffy

A member of the Sioux Falls School Board, explaining that the district's opt-out funding is not just kept by the district but returned to local taxpayers.

Larry Rhoden

The governor of South Dakota, who initially proposed a 0% increase to education funding before the state legislature allocated a 1.4% increase.

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What they’re saying

“We're being responsible and acting in good faith, and we need our counterparts to have that same sentiment and idea and focus because good quality education impacts our communities.”

— Nan Kelly, School Board President

“That extra money doesn't just sit in the district's bank account or something like that. It is still with the homeowners, and I think that's something a lot of people don't understand.”

— Elizabeth Duffy, School Board Member

What’s next

The Sioux Falls School Board is expected to vote on the proposed budget decisions, including the teacher pay increase and class size strategies, at its regular meeting on April 13, 2026.

The takeaway

Despite facing budget cuts, the Sioux Falls School District is committed to prioritizing teacher pay and maintaining smaller class sizes, recognizing their critical importance to the quality of education and the community. The district is exploring creative solutions to balance its fiscal responsibilities with its dedication to supporting educators and students.