South Dakota

New revenue forecasts don’t improve grim budget situation for South Dakota lawmakers • South Dakota Searchlight

Published

11 months ago

February 12, 2025

New revenue forecasts don’t improve grim budget situation for South Dakota lawmakers • South Dakota Searchlight

South Dakota lawmakers already knew it was a tight budget year. They learned Wednesday it could be worse than they thought.

State government’s day-to-day operations are funded by “ongoing” revenue, such as sales taxes, while money from federal stimulus programs and other “one-time” sources are typically used for one-time needs such as construction projects.

Legislative Research Council Fiscal Chief Jeff Mehlhaff spoke to the Legislature’s main budget committee at the Capitol in Pierre and said ongoing revenues, including sales taxes, “will see negative growth” this year.

“The last time this occurred was fiscal year 2010, in the midst of the 2009 recession,” he said.

Lawmakers will adopt official 2026 revenue estimates Thursday, and those estimates will be used to help build the next annual budget. On Wednesday, Mehlhaff, who works for the Legislature, and State Economist Derek Johnson, who works for the governor, separately presented their revenue estimates to the budget committee.

Before the legislative session began last month, then-Gov. Kristi Noem’s budget proposal estimated $2.46 billion in ongoing revenue for the 2026 budget.

Her budget plan — inherited by new Gov. Larry Rhoden after Noem departed to become U.S. secretary of Homeland Security — includes numerous cuts to close a $51 million gap between ongoing revenue and ongoing expenses.

Noem budget includes cuts, but also new school choice program and more prison money

Johnson estimated Wednesday that 2026 revenues will be $17.6 million less than Noem’s budget proposal originally estimated.

Johnson also provided updated numbers for the current budget year. The bureau estimates this year’s ongoing revenue to be $2.38 billion – about $9 million less than lawmakers expected when they made this year’s budget last winter.

The picture presented by Mehlhaff was different. The Legislative Research Council’s earlier ongoing revenue estimate for the current budget year was $2.42 billion, and he said the new estimate is $2.39 billion, a nearly $30 million decline.

Mehlhaff’s estimate for the next budget year is $2.46 billion in ongoing revenue, putting the council’s estimate in line with Noem’s initial estimate.

Both state officials outlined economic conditions affecting the state’s revenue, including persistent inflation, lower farm income, and a slowdown of people filling jobs.

“Since about January 2024, we’ve been flat to negative on employees in South Dakota,” Mehlhaff said. “That, to me, is a bit concerning in terms of growing the economy.”

Noem estimated $1.45 billion in sales tax revenue for this year. The council’s revised estimate is $10 million less than that, while the bureau’s is about $14 million less.

Johnson said the outlook is negative.

“The consensus seems to be that interest rates are going to be higher for longer,” Johnson said. “That suppresses economic activity.”

One factor in the budgetary difficulties is the Legislature’s own doing. During the 2023 legislative session, lawmakers reduced the state sales tax rate from 4.5% to 4.2% until 2027, costing an estimated $100 million annually in lost revenue.

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South Dakota

Sheridan Lake rescue prompts winter ice safety warning

Published

8 hours ago

January 8, 2026

Press Room

Sheridan Lake rescue prompts winter ice safety warning

RAPID CITY, S.D. (KOTA) – A harrowing scene at Sheridan Lake ended without serious injury Tuesday after a man, a woman and their dog fell through thin ice near the swimming beach, authorities said.

Keep pets on a leash and never attempt a risky rescue if someone falls through the ice, officials said. Call 911 immediately.

The South Dakota Game, Fish, and Parks agency advises that ice three inches or less is unsafe. Four inches is generally considered the minimum for walking, ice fishing or skating.

Lt. Casey Kenrick of the Pennington County Sheriff’s Office said the incident is a reminder to take extra precautions this winter.

“Usually at this time the ice is significantly thick on the lakes around the area, well, some aren’t even frozen all the way at this point. The temperatures have been up and down so much that the ice isn’t solid even though it may look like it is, so make sure you know the ice depth that you’re getting onto,” Kenrick said.

Kenrick said those precautions could mean the difference between a close call and a tragedy.

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South Dakota

A day in South Dakota history

Published

20 hours ago

January 8, 2026

Press Room

RAPID CITY, S.D. (KOTA) – On Jan. 7, 1995, William Janklow began his third of four terms as governor. From statehood until 1972, governors served two-year terms. Voters then approved a constitutional amendment in 1972 allowing governors to serve two consecutive four-year terms.

Janklow served from 1979 to 1987 and again from 1995 to 2003. His 16 years are the longest stint of any governor in South Dakota history

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South Dakota

As South Dakota’s student population shrinks, more choose homeschools

Published

1 day ago

January 7, 2026

Press Room

As South Dakota’s student population shrinks, more choose homeschools

South Dakota’s K-12 population dropped slightly this year, along with public and private school enrollment, but enrollment in alternative instruction grew once again.

That’s according to headcount numbers taken Sept. 26, 2025, and released by the South Dakota Department of Education by Dec. 31.

All totaled, there are 163,053 K-12 students across the state, with 83% of those students attending public schools, 9% enrolled in nonpublic schools and 8% in alternative instruction.

There are 934 fewer K-12 students across the state than last year’s count of 163,987, a 0.5% decrease.

Public school enrollment decreased by 1,736 students statewide. Across 147 public school districts, there were 135,577 K-12 students this fall, down from 137,313 in last year’s fall count, a decrease of slightly more than 1%.

Private school enrollment decreased by 142 students statewide, totaling 15,043 students in nonpublic schools accredited by the SDDOE across the state, down from last year’s count of 15,185, a decrease of 1%.

Nonpublic school enrollment includes 9,462 students in private schools, 5,072 in tribal/BIE schools, 268 in special population schools, 175 in coop/multi-districts, 26 in community-based service providers, 21 in the South Dakota School for the Blind and Visually Impaired, and 19 in alternative schools.

Alternative instruction enrollment increased by 944 students statewide, totaling 12,433 students in alternative instruction or homeschooling this fall, up from 11,489 in last year’s count, an increase of 8%.

In the Sioux Falls metro area, there are 52,325 K-12 students, with 85% attending public schools, 9% enrolled in nonpublic schools and 6% in alternative instruction.

Sioux Falls area public schools

The state’s largest public school district, the Sioux Falls School District, shrunk by 171 students this fall, down from last year’s count of 24,221 K-12 students to this year’s count of 24,050.

Sioux Falls’ neighboring public K-12 school districts saw the following enrollment changes this year:

Harrisburg, the state’s third-largest district, grew by 173 students, from 6,182 last year to 6,355 this year.
Brandon Valley, the state’s fourth-largest district, grew by 82 students, from 5,073 last year to 5,155 this year.
Tea Area grew by five students, from 2,509 last year to 2,514 this year.
West Central shrunk by 32 students, from 1,418 last year to 1,386 this year.
Lennox grew by 14 students, from 1,119 last year to 1,133 this year.
Tri-Valley grew by 41 students, from 952 last year to 993 this year.
Dell Rapids shrunk by 32 students, from 965 last year to 933 this year.
Canton shrunk by 23 students, from 888 last year to 865 this year.
Baltic grew by three students, from 539 last year to 542 this year.
Garretson shrunk by 10 students, from 468 last year to 458 this year.

All totaled, there are 44,384 K-12 students in Sioux Falls area public schools, a growth of 50 students or 0.1% from last fall’s count of 44,334.

Sioux Falls area private schools

Sioux Falls’ three largest private K-12 school systems saw the following enrollment changes this year:

Bishop O’Gorman Catholic Schools, the largest private school system in the state, shrunk by two students, from 2,224 last year to 2,222 this year.
Sioux Falls Christian School shrunk by nine students, from 1,447 last year to 1,438 this year.
Sioux Falls Lutheran School grew by 41 students, from 336 last year to 377 this year.

Other local nonpublic K-12 school enrollments include:

221 students at St. Mary’s School in Dell Rapids;
130 students at Children’s Home Society of South Dakota;
125 at East Dakota Educational Cooperative;
119 at LifeScape;
49 at McCrossan Boys Ranch;
45 at Good Shepherd Lutheran School,
43 at Westside Christian School,
23 at Bethel Lutheran School;
Four at Southeastern;
Three at Baan Dek Montessori;
One at 605 Prep;
One at DakotAbilities.

All totaled, there are 4,801 K-12 students in Sioux Falls area nonpublic schools, a growth of 24 students or 0.5% from last fall’s count of 4,777.

Sioux Falls area alternative instruction

Though it’s the second-largest public school district in the state, Rapid City Area Schools saw the largest number of students opt out of public school and into alternative instruction and homeschooling once again this year, with 1,839 students, followed by the largest district, Sioux Falls, with 1,793 students.

Sioux Falls-area schools had the following alternative instruction enrollment shifts this year:

1,793 in Sioux Falls, an increase of 131 from last year’s count of 1,662;
379 in Harrisburg, an increase of 78 from last year’s count of 301;
350 in Brandon Valley, an increase of 67 from last year’s count of 283;
111 in Tea, a decrease of four from last year’s count of 115;
105 in Lennox, an increase of two from last year’s count of 103;
97 in West Central, an increase of six from last year’s count of 91;
87 in Dell Rapids, an increase of 11 from last year’s count of 76;
79 in Canton, a decrease of two from last year’s count of 81;
73 in Tri-Valley, an increase of seven from last year’s count of 66;
42 in Garretson, an increase of 10 from last year’s count of 32;
24 in Baltic, a decrease of one from last year’s count of 25.

All totaled, there are 3,140 students in alternative instruction in the Sioux Falls metro area, an increase of 305 students or 10.7% from last year’s count of 2,835.

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