This study determined the relationship of state funding to student performance on state mandated assessments in South Dakota between the years of 2003-2009. A cohort group of 40 school districts between 200 ADM and 600 ADM who had not reorganized were selected. Data was collected using the Dakota STEP assessment portal on the South Dakota Department of Education website between the years of 2003-2009. Specific data from groups of aggregated and disaggregated populations from among the cohort schools were selected. These groups included all students, students by gender, students who were classified as low-socioeconomic status, and students who were under an IEP. Statistical analysis was conducted using the Pearson "r" and a 2-tailed test of significance at the 0.05 level. Mean and Standard Deviation for each school and disaggregated group was determined. The findings indicate that there is a weak non-significant negative correlation between funding and reading achievement for all students who took the Dakota STEP assessment. The findings indicate that there is a significant positive correlation between funding and math achievement for all students who took the Dakota STEP assessment. The findings indicate that there is a weak non-significant negative relationship between reading achievement and expenditures for male students. The findings indicate that there is a significant positive relationship between the mathematics achievement scores on the Dakota STEP assessment and per pupil expenditures both for male students. The findings indicate that for students classified by low SES in reading indicate there is a weak, negative, non-significant relationship between reading achievement and expenditures. The findings indicate that for students classified by IEP in reading indicate that no significant relationship exists. The findings indicate that for students classified by SES in math indicate that there is a clear, strong relationship between math achievement and expenditures. The findings indicate that for students classified by IEP in math indicate that there is a clear, strong relationship between math achievement and expenditures. The findings indicate that the highest mean score in reading was for females at 80.48. The findings also indicated that the highest mean score in math was for females at 74.98. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]