PIERRE, S.D. — In a thirty-minute address to a joint session of the South Dakota Legislature this afternoon, (Tuesday), Republican Governor Kristi Noem unveiled a more austere budget than in her previous budgets.
She noted that the state has $44 million in available ongoing revenue, less than in recent years.
Also gone are the infusions of federal infrastructure and COVID funds.
The state constitution mandates the state have a balanced budget. Noem has proposed the 136th consecutive balanced budget.
However, after the past few flush years of state and federal money, she submits several cuts to make that happen. The governor’s office is asking for $71.9 million in budget cuts.
Noem wants the “Big Three”—state employees, educators, and care providers—to receive a 1.25% pay increase.
Perhaps most notable is reducing the state’s support for South Dakota Public Broadcasting. She says SDPB is currently supported at the third highest per-person rate in the nation, but Noem wants the support to be at the national average.
The Departments of Social Services and Human Services are also being cut. Noem says they have been reverting funds to the state in recent years.
She’s also calling for a cut to Temporary Assistance for Needy Families. Noem says, “Our economy is strong, and South Dakotans are working.”
Fully funding expanded Medicare will cost an additional $27.8 million.
However, despite the tight funding, Noem did propose a few new initiatives.
Noem wants legislators to establish and fund Education Savings Accounts for South Dakota students with an ongoing $4 million commitment.
“This investment will for a portion of private school tuition or curriculum for alternative education–beginning with about $3,000 per student.”
Noem says that the ESAs will not harm public schools.
Noem proposes to spend $10 million for schools to increase security.
She also asked legislators to complete the $825 million needed for the new men’s prison by requesting $182 million in funding.
While the executive branch submits the budget, the legislature ultimately considers and passes it.
The speech is likely Noem’s last budget address, even though she has two years remaining in her second and final term as governor. President-elect Donald Trump has picked her as his Secretary of Homeland Security nominee.
The 2025 South Dakota Legislature open on January 14, 2024.
