The South Dakota Department of Education’s cross‑border agreements are once again proving vital for rural schools. Under the 2005 partnership with North Dakota, followed by accords with Minnesota in 2009 and Iowa in 2011, students who live on the border may attend public schools in the neighboring state. While the department does not track exact numbers, local officials say the arrangements are helping keep attendance levels up – a key factor for state funding and school viability.
Milbank welcomes Minnesota students
After the Big Stone City K‑8 school closed following the 2024‑25 academic year, many Minnesota families faced a choice: return to schools in Minnesota or send their children to the nearest South Dakota district. Milbank, located about ten miles from Big Stone City, stepped in to accommodate the displaced students.
Superintendent Justin Downes estimates that roughly 60 Minnesota residents now attend schools in the Milbank School District, representing nearly six percent of the district’s total enrollment. “That’s pretty significant, and we did see a lot of growth this year for kids that live near the border,” Downes said.
Funding benefits for both states
The South Dakota‑Minnesota agreement stipulates that out‑of‑state students are counted toward the receiving district’s state‑aid calculation. In practice, this means the district receives additional money based on the average general‑education revenue per average daily membership (ADM) from state aid and local property taxes. The sending state also provides a per‑student payment to South Dakota’s Department of Education, further bolstering resources for border schools.
Downes noted that this financial arrangement helps sustain programming and staff levels, even as many rural schools face declining enrollment. “As these small schools get smaller, pretty much all of our schools in the state are getting smaller. And as we get smaller, sometimes hard decisions are going to be made along the way on programming. We’re pretty fortunate to still have all that programming,” he said.
Enrollment trends in Milbank
Milbank’s own enrollment numbers illustrate the impact of regional school closures. The district fell below 1,000 students in the 2024‑25 school year for the first time since 2019, recording 971 students. The 2025‑26 year, the first after Big Stone City’s closure, saw enrollment rise to 1,008, with estimates for the current year hovering around 1,020.
These figures suggest that the influx of out‑of‑state students is helping offset the loss of local pupils, providing a modest but meaningful boost to the district’s overall numbers.
Local control and future outlook
Jaeya Jones, public information officer for the South Dakota Department of Education, emphasized that the department does not track individual cross‑border enrollments because they are considered local‑control decisions. “The department is aware that school districts across the state form local partnerships. However, the department does not track these as they are a local control decision and agreement,” she said.
Nevertheless, the continued success of these agreements underscores their importance for rural communities that rely on steady enrollment to maintain funding, staff, and programs. As more small districts consider consolidation or closure, border partnerships may become an increasingly valuable tool for preserving educational opportunities in South Dakota’s most remote areas.
Looking ahead
State officials and local educators alike are watching the trend closely. While the agreements are not a panacea for all enrollment challenges, they demonstrate how cooperative solutions between neighboring states can help sustain rural schools, protect jobs, and ensure that families—regardless of state lines—have access to quality public education.
Original reporting: KOTA (Gray) – local — read the source article.
