South Dakota
South Dakota’s lean fiscal budget sees ‘flat’ revenues, sales tax dip
PIERRE — Gov. Larry Rhoden’s first budget address as governor is in the books.
And it was a “straightforward” budget without many surprises, as multiple lawmakers told the Argus Leader.
Rhoden presented his recommended budget Dec. 2 for South Dakota’s fiscal year 2027 at the State Capitol Building.
The Republican governor asked lawmakers to budget $7.44 billion in state fiscal year 2027, up from the $7.28 billion recommended by former Gov. Kristi Noem for FY2026. FY2027 is split between about 34% state funds, 42% federal funds and 23% funds marked as “other.”
Rhoden is also leaving about $14 million for lawmakers to divvy up during the upcoming Legislative Session in January. And an additional 135 full-time staff have been recommended for the next fiscal year, up from a budgeted 14,095 in FY 2026.
But Rhoden, who is only serving a partial term as governor after having taken over the reins from Noem last January and now faces reelection in 2026, is taking on the state’s fiscal goals and ambitions amid slim revenue projections and realities.
“I won’t sugarcoat it: Revenues have been pretty flat – only rising slightly,” Rhoden told lawmakers during his address. “But we have to keep the context in mind. We’re coming off some of the strongest years in our state’s history – or in any state’s history. Our economic growth may have slowed, but we’re comparing that to the fastest growth that South Dakota has ever seen.”
Ongoing sales and use tax collections suffered in FY25 before bounce back
More than half of the state’s overall revenue picture is made up of an ongoing sales and use tax, which saw a fiscal year-to-year decrease.
South Dakota FY2025 collected about $1.43 billion from the state sales and use tax — a 1.5% decrease compared with FY2024. Data from the state’s Bureau of Finance & Management indicates several months measured in FY2025 saw dips in sales and use tax growth.
The Rhoden budget estimates the FY2026 collections will reach about $1.5 billion and $1.56 billion in FY2027.
State sales and use tax revenue has seen month-to-month growth since June, with a more-than-8% increase in October.
“We’ll be getting November numbers any day now,” Rhoden said. “Year-to-date, we’re about where we want to be. 4% to 5% growth is pretty typical for South Dakota, but it also means we don’t have a ton of headroom.”
South Dakota’s farm sector sees impacts of Trump tariffs; Rhoden says to ‘pray for rain’
Recent data shows the Midwest has seen economic swings in the agriculture and commodity markets — and Rhoden had to acknowledge it, at least in part.
According to a recent study by The Dakota Institute, a nonprofit economic research firm, South Dakota saw its real gross domestic product (GDP) shrink by 3.1% in Q1 of 2025 — neighboring states saw similar impacts.
It later rebounded in South Dakota with 5.2% annualized growth in Q2 of 2025. But President Donald Trump’s tariff strategy and an international trade war underlined the volatile nature of in the state’s corn, soybean and wheat prices, which have dropped since to lowest prices in years, while U.S. beef cattle prices are at record highs.
“The weakness reflected ongoing pressures from trade disruptions through the implementation of tariffs and a mass renegotiation process of multiple trade agreements,” The Dakota Institute’s study indicated. “This volatility — contraction followed by robust recovery within six months — underscores both the region’s vulnerability to external shocks and its capacity to bounce back when conditions stabilize.”
“When ag does well, the state does well,” Rhoden said. “But when ag struggles, our growth tends to slow down … Historically, there’s been a correlation between our sales tax collections and farm income. So let’s pray for rain and for President Trump to be successful in his trade negotiations.”
Medicaid spending overtakes K-12 dollars in FY27
Medicaid, one of South Dakota’s largest fiscal responsibilities, has grown “far faster than any other area of the budget,” Rhoden said.
“In fact,” Rhoden added, “for the first time in state history, Medicaid is a bigger share of the general fund than K-12 education.”
According to the BFM, the state’s Medicaid budget has grown by $360 million since 2020 to $758 million. Rhoden budgeted $725 million for K-12 education.
The state’s share of the Federal Medical Assistance Percentage, which determines matching each state’s federal match, now represents $105 million. South Dakota’s coverage share went up by 0.86%, from 48.47% to 49.33%.
State employees won’t see budgeted raises in next fiscal year
Breaking from his predecessor, who pushed for state employee raises during her tenure as governor, Rhoden revealed that employees for the state won’t see a baseline raise to their salaries in FY2027.
Rhoden said the state budget includes a “modest investment in our State Employee Health Plan,” specifically a $3 million investment in health plan reserves. The Republican governor added there are also “plan changes” in the works to prevent employees’ healthcare costs from going up, “since we won’t be able to give them a raise this year.”
But Eric Ollila, executive director and lobbyist for the South Dakota State Employees Organization, told the Argus Leader following the budget address that Rhoden’s budget picture doesn’t account for healthcare deductibles.
Ollila also said the “plan changes” that Rhoden teased were too vague for his liking. He later expressed concern that the changes would be passed through to state employees.
“What it’s not going to do is save employees 100% of the healthcare costs,” Ollila said.
Rhoden recommends raising reserve allocation to 12.5%
Rhoden plans to increase the state’s budget reserve from 10% to 12.5%
The governor attributed his desire to raise reserves based on “continued slower revenue growth and weakness in the farm sector.”
South Dakota
FCS Football Recruiting Roundup: South Dakota, Montana State Target 2027 Defensive Standouts
Welcome to another edition of the FCS Football Central Recruiting Roundup.
As spring practice winds down, recruits are still continuing to get on campus to visit schools and meet with their coaching staff. I caught up with some of the latest prospects who received an offer from an FCS program after their visit.
Amarie King | 2027 | DB | 5’7″ 140 lbs | Case High School | Racine, WI
King received his latest offer from South Dakota on April 17 after speaking with defensive coordinator Billy Kirch.
“Coach Kirch told me bout the offer, and that conversation went well. He told me a lot about the school, and asked me what my family and parents do. He said that my film was amazing and that he wanted to offer me,” King said.
“My recruitment is going well, although it is a little stressful here and there, but I am really just being patient and trusting the process, and keep working.”
He has visits to South Dakota and Drake coming up. Last season, he finished with 44 tackles, eight pass breakups, and six interceptions for the Eagles.
After a great conversation with coach kirch I’m blessed to I’ve received my first division 1 offer from @SDCoyotesFB @AntonGraham_ @MJ_NFLDraft @CoachBKirch @joshmanchigiah pic.twitter.com/jaxIYac67A
— Amarie King (@Amarieking27) April 17, 2026
Jayden Harris | 2027 | ATH | 6’2″ 170 lbs | Manteca High School | Manteca, CA
Harris picked up his latest offer from Montana State on Friday when he was in Bozeman for the Bobcats’ Junior Day, and meeting with cornerbacks coach Jordan Lee, defensive coordinator Bobby Daly, and head coach Brent Vigen.
“First, it was Coach Lee, then I had meetings with Coach Daly and Coach Vigen, who broke the news while we were talking. They want me to come in and play early. They like my versatility as a defensive back, and that’s why they offered me,” Harris said.
“The visit was cool! The snow was coming down, and the coaches still showed love. Recruiting is going well right now. Most schools that are in touch with me see something in me for sure, especially since I’m a zero-star athlete, so that’s love. I feel like I’m the best DB in California, and my measurements and production speak for themselves.”
He also has offers from Idaho, Washington State, and Sacramento State. He has upcoming visits to Arizona State and New Mexico.
Last season, he finished with 63 tackles, 11 pass breakups, nine interceptions, six tackles for loss, two sacks, two forced fumbles, and two pick-sixes for the Buffaloes.
Blessed to receive an offer from Montana State University 🐾 @ballcoachLee @CoachBobbyDaly @CoachSauve @CoachSmith59 @bvigen @BrandonHuffman @Rivals_Recruits @GregBiggins pic.twitter.com/ofYdjJKcmK
— Jay Harris (@JaydenOHarris) April 18, 2026
Maurice “MJ” Harrell | 2026 | DB | 6’1″ 170 lbs | Hutchinson CC | Hutchinson, KS
Harrell picked up his first Division I offer from Houston Christian on April 17 after he spoke with cornerbacks coach DeMarcus Coleman.
“Coach Coleman called and told me he liked what we saw from the videos I sent him, and that he wanted me to be a part of his program,” Harrell said.
Last season, he finished with 20 tackles, 1.5 tackles for loss, one sack, and a fumble recovery for the Blue Dragons. Mercyhurst, Division II UTPB, and Missouri Southern are some other schools he has been in contact with.
Blessed To Receive my first d1 offer from Houstan Christian University pic.twitter.com/OBD9ITQZHS
— MauriceHarrell (@M_Harrell19) April 18, 2026
Jadhari Young | 2026 | WR | 6’1″ 200 lbs | De Anza College | Cupertino, CA
Young received his latest offer from Eastern Illinois on April 15 after speaking with wide receivers coach Tino Smith.
“Coach Smith called me, and we had a long and great conversation. He told me he believes in me and that he thinks I can be great under his coaching,” Young said. “My recruitment has been going great since I graduated two weeks ago. A lot of coaches have expressed a lot of interest in me.”
Young also has offers from Sacramento State, Prairie View A&M, and Chicago State. Last season, he hauled in receptions for 559 yards and seven touchdowns for the Mountain Lions. He was named a Golden Coast Conference First Team selection.
He will be taking his official visit to Eastern Illinois on April 24. Gardner-Webb, West Florida, Monmouth, Stony Brook, and UMass are some other schools he is hearing from.
Blessed to receive my 5th D1 offer from Eastern Illinois University — Dhari Young “DEBO” (@dharigogetit) April 15, 2026
Thank you Coach @coachtinosmith for believing in me💯 pic.twitter.com/yMZjnsfRvK
AJ Moore | 2027 | RB | 5’9″ 200 lbs | College of Dupage | Glen Ellyn, IL
Moore received his first Division I offer from Lindenwood on April 17 after speaking with running backs coach Lane Lawson.
“Coach Lawson called and offered me. He just told me he’d be really excited to have me over and thinks I could be a part of something special with the program they got going over there,” Moore said.
Last season, he finished with 81 carries for 518 yards and five touchdowns, while adding nine receptions for 73 yards and two touchdowns for the Chaparrals, who won their fifth consecutive NJCAA Division III national championship. Moore is working on scheduling his official visit to Lindenwood.
#AGTG After a great conversation with @CoachLawsonLU I am blessed to have my first division 1 offer from Lindenwood University @LindenwoodFB @Dupage_Football @JUCOFFrenzy @AllenTrieu @JordanWesty1 pic.twitter.com/DGLjZC4gIA
— AJ Moore (@ajmoore6_) April 17, 2026
Leshem Nyante | 2027 | OT | 6’5″ 265 lbs | Anna High School | Anna, TX
Nyante picked up his latest offer from Texas Rio Grande Valley on April 17 after he spoke with offensive line coach Jeff Bowen.
“Coach Bowen reached out this morning to officially extend the offer. It was a great talk, and he mentioned they really liked my film and how I would fit their system. So we are focused on building that relationship now,” Nyante said.
“I’m really grateful for how my recruiting process is unfolding so far. Things are definitely moving fast with spring ball right around the corner, and it’s been great seeing the increase in interest every week.”
He also has offers from Arkansas State, Division II Midwestern State, and East Central University. Old Dominion, Texas State, UTEP, and New Mexico are some other schools he is hearing from. Nyante will be taking an official visit to Arkansas State in June.
#AGTG After a great conversation with @CoachJeffBowen , I am blessed to receive a D1 offer from @UTRGVFootball !!@8_parr @Coach_Rigg @tylerdedwards33 @Sevier5 @jessedstew @AnnaCoyotesFB @CoachTBush @Perroni247 @SWiltfong_ @CKennedy247 pic.twitter.com/6o9H13baAb
— Leshem (Shem) Nyantee (@leshemnyantee10) April 17, 2026
Matthew Lashley | 2027 | DB | 6’1″ 198 lbs | Riverside City College | Riverside, CA
Lashley received his latest offer from East Texas A&M on April 15 after speaking with safeties coach Luke Jaicks.
“Coach Jaicks called and offered me. He’s a great coach, and I would love to play for him,” Lashley said. “My recruitment is going well; it’s starting to heat up after spring ball.”
He also has an offer from Southern Utah. Last season, he finished with 14 tackles and two interceptions for the Tigers.
Blessed to receive another D1 offer to @Lions_FB! @JacksonSimon25 @nilsonsports pic.twitter.com/X4iLU8VRID
— Matthew Lashley (@MatthewLashley_) April 15, 2026
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South Dakota
Nature: Prairie chickens in South Dakota
South Dakota
Democrats fail to field candidates for a majority of South Dakota legislative seats
(SOUTH DAKOTA SEARCHLIGHT) – Democrats are running for 46 of South Dakota’s 105 legislative seats — leaving 56% of seats without a Democratic candidate.
That doesn’t bode well for the party ahead of November, said Michael Card, professor emeritus of political science at the University of South Dakota.
“It doesn’t put them in a position to actually put forward their ideological policy preferences and have much of a success at getting those enacted,” Card said.
In the state Senate alone, Democrats have failed to field a candidate for 22 seats, which is nearly two-thirds of the chamber. In the House, Democrats have failed to field a candidate for 38 seats, which is 54% of the chamber.
There is only one Democratic legislative primary in the state: a state Senate race in District 26, which includes the Rosebud Reservation.
There are no statewide Democratic primaries, after announced candidates for governor and U.S. House dropped out or failed to gather enough petition signatures to make the ballot, leaving one Democrat in each of those races.
Statewide candidates will have less name recognition than Republican candidates ahead of the general election, since they didn’t have primaries, Card said. In the Legislature, Card said Democrats “are guaranteeing they won’t get a majority.”
In contrast, Republicans have primary races for governor, U.S. House and U.S. Senate. Five legislative districts do not have Republican primaries, but do have Republican candidates. There is a Republican candidate running for every legislative seat, except for one House seat in District 27, which includes the Pine Ridge Reservation.
Card said there are several factors leading to poor candidate turnout among Democrats, including a self-fulfilling cycle of failure.
“A lack of winning makes fewer people willing to take a chance on running for office,” Card said. “Why run if I think I’m going to lose?”
Democrats haven’t held a statewide office since 2015, and they haven’t held a majority of either legislative chamber since 1994.
Joe Zweifel, deputy executive director of the South Dakota Democratic Party, said the organization worked “really, really hard” to convince Democrats to run for office.
“But you can’t force people to run for office,” said Zweifel, of Sioux Falls, who’s running for a legislative seat himself in District 12.
He’s heard the open seats called a “failure.” But he disagrees, choosing to focus on the Democrats who did step forward.
“We’re running quality, good candidates in those races,” Zweifel said.
The South Dakota Democratic Party hopes to build on legislative successes, such as a new law from Rep. Kadyn Wittman, D-Sioux Falls, that commits state funding to cover the family portion of reduced-price school meals.
“That specifically is a return on investment for our donors, and it shows that Democrats are doing good things for the people of South Dakota,” Zweifel said.
Wittman’s success helped inspire Democratic District 13 House of Representatives candidate Ali Rae Horsted, of Sioux Falls, to take a second run at the Legislature. Horsted ran unsuccessfully for the Senate against Sen. Sue Peterson in 2024, garnering 42% of the vote.
Horsted plans to build on that success and the name recognition she already has in the district. She hopes she’ll have “better odds” in this election, since there are two House seats for every district.
Horsted said it would better serve South Dakota if the state had a more balanced Legislature. While the latest Legislature was 92% Republican, 52% of voters in South Dakota are Republican. South Dakota has the lowest percentage of Democrats, 7.6%, in the Legislature nationwide.
“I think it’s important that people have options on the ballot,” Horsted said, “and people are able to vote for candidates that represent their values and their vision for the future of South Dakota.”
Makenzie Huber is a lifelong South Dakotan who regularly reports on the intersection of politics and policy with health, education, social services and Indigenous affairs. Her work with South Dakota Searchlight earned her the title of South Dakota’s Outstanding Young Journalist in 2024, and she was a 2024 finalist for the national Livingston Awards.
South Dakota Searchlight is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
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Copyright 2026 KOTA. All rights reserved.
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