As the legislative session largely wraps up — except for when lawmakers return to address any bills vetoed by Gov. Larry Rhoden — one of the most important responsibilities of the Legislature is completing the state budget. Each year that work is accomplished through two bills: the General Appropriations Act, which sets the upcoming year’s budget, and a bill that adjusts the current fiscal year budget based on updated information.
House Bill 1326 is the annual General Appropriations Act that establishes South Dakota’s ongoing budget for the coming fiscal year. This year’s budget reflects a cautious but responsible approach as lawmakers worked within the revenue projections available at the start of session. While stable revenues allowed the Legislature to provide a 1.4 percent increase for K-12 schools and technical colleges, community-based providers, and the state employee workforce, it is clear that this level of increase does not keep pace with the rising cost of living. Our teachers, state employees, and the professionals who provide essential services deserve wage growth that reflects the value of their work and keeps South Dakota competitive. Continuing to grow our economy must remain a priority so future budgets can provide meaningful increases that help our workforce keep up with inflation and remain in South Dakota.
Property taxes have also been a major topic of discussion across South Dakota. The final budget incorporates statewide property tax relief measures along with additional targeted relief options designed to help homeowners across the state.
The second major budget bill, Senate Bill 78, adjusts the current fiscal year budget that runs through July. These adjustments reflect updated information on student enrollment, Medicaid utilization, and other spending changes that occur during the year. Overall, SB 78 results in a net increase of $34.1 million in general fund spending while allowing resources to be reallocated to areas where they are most needed, including building and infrastructure maintenance, cybersecurity improvements for the state’s universities, and investments in technical colleges. These building and infrastructure investments help ensure facilities across our higher education system remain in good condition, including at South Dakota State University, where maintaining classrooms, laboratories, and research facilities is essential to supporting students, faculty, and innovation.
In addition to the major budget bills, several targeted appropriations were approved this session. These include $5 million for rural road and culvert infrastructure and $5 million in grants to volunteer fire departments to purchase protective equipment. I also carried two appropriations that were approved: $500,000 for the successful Jobs for America’s Graduates program and $5.5 million in grants to ensure victim services facilities and programs are available across the state.
These investments reflect the practical priorities that matter most to communities across South Dakota: strong infrastructure, public safety, workforce development, and support for victims.
South Dakota’s budgeting process works because it balances careful spending with strategic investments. While there are always differing viewpoints on priorities, the final budget ensures the state continues meeting its core obligations while positioning South Dakota for the future.
— This column was submitted by District 7 State Sen. Tim Reed, R-Brookings.
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