Three South Dakota school districts may face penalties for holding more cash in their general funds than state law permits. On Wednesday, the School Finance Accountability Board recommended financial sanctions for the Frederick and Miller districts, and a financial accreditation review for Hoven.
The board also reviewed six districts’ fiscal 2025 data and heard from superintendents and business managers. While Frederick exceeded the 40% cash limit with a 43.98% balance, the board voted unanimously to impose a $9,265 penalty. Miller, with a 31.40% balance, faces a $7,474 penalty.
Hoven’s cash balance reached 64.13%, prompting a recommendation for a financial accreditation review. Elk-Mountain, which fell $101 short per teacher in average compensation, also faces a review due to staffing and administrative challenges.
Three other districts—Agar-Blunt-Onida, Lead-Deadwood, and Hill City—also exceeded limits but received waivers. Agar-Blunt-Onida and Lead-Deadwood do not receive state K–12 aid, making them ineligible for aid reductions. Hill City’s overage was minimal at 30.01%.
The Legislature’s Appropriations Committee will decide whether to accept these recommendations at its December 2 meeting in Pierre.
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