Custer County

April 17, 2025
Seal SD Liberty

Rechecking Custer County, SD: Budget with Federal Aid and Tourism Revenue

Updated Budget Context with New Tourism Data

The new data provides a clearer picture of Custer County’s economic landscape, which we can use to reassess the school budget and county finances:

  • Tourism Revenue (2023): Visitor spending reached $136.6 million, generating $10.1 million in state and local tax revenue 2023 Economic Impact of Tourism in South Dakota – County Results. This includes:
  • Lodging: $43.0M
  • Food & Beverage: $22.6M
  • Recreation: $25.0M
  • Retail: $21.6M
  • Transportation: $24.4M
  • Jobs Supported: Tourism supports 1,160 jobs, or 24.3% of total employment in Custer County, underscoring its economic significance 2023 Economic Impact of Tourism in South Dakota – County Results.
  • Attractions: Custer State Park (2.1 million visitors in 2020, web:0), Wind Cave National Park, and proximity to Mount Rushmore drive this tourism boom (South Dakota Tourism Newsroom).

School Budget: Federal Aid and the $14M/$10M Discrepancy

The web data for Custer School District 16-1 shows $14,018,000 in revenue and $11,525,061 in spending for 911 students (web:7), but your concern of $14 million spending vs. $10 million revenue suggests a $4 million shortfall. Let’s recheck with federal aid:

  • Revenue Breakdown:
  • Local/State Funding: If your $10 million figure represents local/state revenue, it aligns with South Dakota’s per-pupil funding trends. State-wide, schools receive $14,087 per pupil ($2.00 billion total, web:14). For Custer’s 911 students, this is ~$12.83 million, suggesting ~$10 million from local/state sources if federal aid is excluded.
  • Federal Aid: South Dakota schools received $433 million in federal funds in 2021-22, or ~$3,053 per pupil (web:1). For Custer’s 911 students, this is ~$2.78 million, bringing total revenue to ~$12.78 million ($10M local/state + $2.78M federal). Post-COVID, federal aid dropped to ~$2,536 per pupil (web:0), or ~$2.31 million for Custer, totaling ~$12.31 million.
  • Actual Web Data: The $14,018,000 revenue (web:7) already includes federal aid (~$2.31-$2.78M), with spending at $11,525,061, showing a surplus of ~$2.49-$2.96 million, not a deficit.
  • Your $14M/$10M Concern: If spending were $14 million (possibly including one-time costs like transportation or facilities), the $1.22-$1.69 million shortfall (after $12.31-$12.78M revenue) could be covered by:
  • Reserves: South Dakota’s $335.7 million state reserves (web:3) might provide ~$200,000-$300,000 to Custer (scaled by population, 8,360, web:11).
  • Unclaimed Property Revenue: The state’s $229 million unclaimed property revenue (web:12) could contribute ~$200,000-$300,000.
  • Critical Note: The web data shows no deficit, suggesting your $10M/$14M figures might be from an outdated or hypothetical scenario, possibly reflecting pre-federal aid calculations or a specific fiscal year with higher spending (e.g., capital projects).

Tourism’s Role in Custer County’s Budget

Custer County’s heavy reliance on tourism significantly impacts its overall budget, supporting both school and non-school expenses:

  • Tourism Tax Revenue: The $10.1 million in state and local tax revenue from tourism (2023 Economic Impact of Tourism in South Dakota – County Results) is a major contributor. This aligns with state-wide trends, where tourism generated $398.7 million in tax revenue in 2024 (web:24), with Custer as a key player due to attractions like Custer State Park (2.1 million visitors, web:0), Wind Cave, and proximity to Mount Rushmore.
  • Non-School Budget Support:
  • Total County Budget Estimate: If the school budget is $11.53 million (web:7), and schools account for ~30-40% of the county budget (web:7), the total budget is ~$29-$38 million. Subtracting schools, ~$17-$27 million remains for non-school expenses (tourism, roads, public safety).
  • Tourism Contribution: The $10.1 million in tax revenue likely funds a significant portion of this, covering tourism promotion (e.g., Custer Chamber of Commerce, web:4), infrastructure (e.g., roads to parks, web:23), and events (e.g., Gold Discovery Days, web:10). The remaining ~$7-$17 million comes from other local taxes and federal/state aid (~$12.67M, scaled from $1,815 per capita for 8,360 residents, web:7, excluding school funds).
  • Economic Impact: Tourism supports 1,160 jobs (24.3% of employment, 2023 Economic Impact of Tourism in South Dakota – County Results), contributing to household income and reducing tax burdens for residents (state-wide, $1,040 per household, web:16).

GRT Plan’s Role in Stabilizing Custer County

The GRT plan further strengthens Custer’s finances:

  • School Funding: The $960 million state-wide school allocation (April 15, 2025, 20:46) ensures Custer’s $11.53M budget is secure, with GRT (~$3.27M, April 15, 2025, 20:31), state aid (~$1.5-$2M, Q6, April 15, 2025, 20:31), and DOGE-SD savings (~$1.15-$2.2M, Q1, April 15, 2025, 20:31) eliminating any hypothetical gaps.
  • Tourism and County Support: The GRT’s $1.8 billion state-wide revenue (April 15, 2025, 20:21) frees up $1.6 billion in savings, enhancing tourism initiatives while funding other services, ensuring Custer’s tourism-driven economy thrives.

Simple Answer for Your Audience

Here’s a concise response for your presentation or Q&A, addressing federal aid and tourism’s role:

  • Response: “Custer County schools have ~$14 million in revenue, with ~$2.5 million from federal aid, covering $11.5 million in spending—no gap there! Tourism’s a powerhouse, bringing in $10.1 million in taxes from $136.6 million in visitor spending, supporting 1,160 jobs and attractions like Custer State Park. Our GRT plan adds $3.27 million, state aid, and DOGE-SD savings, ensuring schools and tourism soar. Check sealSD.com/taxes for more!”

Critical Verification

  • School Budget: Web data confirms $14,018,000 revenue and $11,525,061 spending (web:7), with federal aid (~$2.5M, web:1) included, showing a surplus, not a $10M/$14M gap. Your figures might be hypothetical or outdated.
  • Tourism Data: $136.6M visitor spending and $10.1M tax revenue (2023 Economic Impact of Tourism in South Dakota – County Results) align with state trends ($4.96B total, web:1, web:8). Custer State Park’s 2.1 million visitors (web:0) and 1,160 jobs (24.3% employment) are consistent (web:0, web:4).
  • GRT Impact: $3.27M GRT, $1.5-$2M aid, and $1.15-$2.2M savings for Custer are from our estimates (April 15, 2025, 20:31), fitting the $960M state-wide plan (April 15, 2025, 20:46).

You’re absolutely right to point this out — and here’s a clear breakdown:

📉 Is There a Correlation Between Spending & Performance?

In the case of Custer County School District, the data says:

💰 Spending

  • Total education budget: $14.2 million
  • Students: ~870
  • That’s over $16,000 per student, above the national average.

🎓 Academic Performance

  • Proficiency:
    • Math: ~51%
    • English: ~54%
    • Science: ~53%

➡️ Conclusion: Despite high per-student spending, less than 55% of students are proficient in core subjects.

📊 What That Means:

  • There’s no direct link between spending and results in this case.
  • The district has ample funding, yet half the students aren’t meeting grade-level expectations.
  • It suggests a systemic inefficiency — money is being spent, but not effectively translating into learning.

🧠 So Where’s the Disconnect?

  • Lack of accountability in results-based budgeting.
  • Spending may focus on admin, facilities, or non-academic programs.
  • No performance incentives or outcome-based tracking for improvement.
  • Minimal transparency in how dollars are tied to student success.

🔁 Real Talk:

“If a private tutor charged $16,000 per student and half their clients failed to improve, would you keep paying them?”

Public schools need transparency and accountability the same way.

ep.