District 7 Legislative Report: South Dakota Legislature’s crossover day serves as reality check

By District 7 State Sen. Tim Reed | R-Brookings

As the legislative session moves toward crossover day, the pace and tone of the work begin to change. Crossover day is the point when most bills must pass at least one chamber to remain alive. It’s a procedural deadline, but it also serves as a reality check. Ideas with momentum continue forward, while others fall away, not always because they lack merit, but because time, funding, or consensus run short.

At the same time, lawmakers are working through budget discussions shaped by some encouraging news. Recent state sales tax revenues have come in stronger than expected, prompting conversations about potential raises for teachers and state employees. Competitive pay matters for retaining a strong workforce, whether in our classrooms or in state government, and it’s an issue I continue to hear about from communities across South Dakota.

One measure expected to be voted on this week in the State Senate, SB 189, would make permanent a 0.3 percent state sales tax reduction enacted several years ago that is currently scheduled to sunset in 2027. Making that reduction permanent would significantly narrow future revenue growth. If the state reaches a point where there is no capacity for increases because revenue has been locked in too tightly, the consequences would be serious for core state services, including public education, higher education, and health care. That long-term risk deserves careful consideration, especially when recent budgets have already struggled to address teacher pay, state employee compensation, and Medicaid reimbursement rates.

One example of a more measured approach can be seen in the work underway on emergency medical services. My bill, SB 89, which passed the Senate and is now awaiting a hearing in the House Health and Human Services Committee, establishes a task force to examine how EMS could be funded as an essential service. Rather than rushing to impose a mandate or funding mechanism, it focuses on understanding costs, funding options, and local impacts before long-term decisions are made.

As crossover day approaches, these choices become more interconnected. The Legislature has to weigh what can be afforded today against what must be sustained tomorrow. One-time revenue strength is helpful, but permanent policy decisions require confidence that the state can meet its core obligations year after year.

The weeks ahead will involve sorting through those trade-offs as bills either advance or fall away. My focus remains on prioritizing responsible budgeting, supporting essential services, and making sure long-term commitments are made thoughtfully, with a clear understanding of how they affect local communities like Brookings, District 7, and South Dakota as a whole.

This legislative report was written by Tim Reed, state senator representing District 7.

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