Rapid City Area Schools employees will receive a 2.5% wage increase beginning July 1, following the conclusion of labor negotiations.
The raise applies to all employee groups except executive leadership, whose negotiations are still ongoing. The agreement will cost the district $2.51 million and comes as the district faces declining resources and a significant budget deficit.
In addition to the pay increase, employee groups agreed to two‑year contracts, reducing how often full negotiations occur. Under the new structure, unions may reopen talks annually only on wages and one additional topic, a change district leaders said will add stability.
District officials acknowledged concerns from employees about rising insurance premiums, which are expected to increase despite the pay raise. The district will absorb an additional $2 million in insurance costs, with more details to be presented at a May 5 school board meeting.
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