School Board & Superintendent Provide Update Regarding Opt Out Resolution
The Hoven School Board and Administration would like to provide our constituents with an important update regarding the district’s recently approved opt out resolution.
At the April school board meeting, the Board passed a resolution to continue the district’s current opt out. At the regular board meeting on May 12, the Board proceeded with setting the election date in accordance with required statutory timelines.
Following those actions, the district received communication from the South Dakota Department of Education on May 13, in regard to our district’s General Fund Balance corrective action plan. The district had previously submitted a corrective action plan outlining fiscally responsible measures to gradually decrease the General Fund Balance over time. However, the response from the Department of Education indicated the district would need to amend that plan by choosing one of the following options:
Spend $150,000 on unbudgeted expenses prior to June 30, 2026; or
Reduce the amount of opt out revenue collected for Fiscal Year 2027 to $50,000.
This information was not received until May 13 — the day after the Board’s regular May meeting at which the election date had already been established.
The Hoven School Board and Administration will not support frivolously expending approximately $150,000 on unbudgeted expenses simply to meet this requirement. We want to assure our constituents that fiscal responsibility remains one of our highest priorities, and we take our obligation to be careful stewards of taxpayer dollars extremely seriously.
The Board and Administration also recognize that multiple factors, especially recent legislative changes, will have a significant financial impact on our district in the years ahead due to required increased expenditures as well as the loss of substantial revenue for our district. Because of those future financial realities, it is likely the district will need to pursue an opt out in the future.
However, after carefully considering all available information and the circumstances surrounding the Department of Education’s response timeline, the School Board in consultation with legal counsel has determined that the most appropriate course of action at this time is to rescind the current opt out resolution.
While we regret that the timing of these events did not align better for decision making purposes, the district was required to operate within the legal timelines associated with the opt out process and did not receive additional direction regarding the corrective action plan until after the election date had been set.
We sincerely appreciate the many community members who have reached out in support of our school district throughout this process. The Board and Administration remain committed to providing a high-quality education for our students while continuing our long-standing tradition of strong financial stewardship.