South Dakota

South Dakota’s lean fiscal budget sees ‘flat’ revenues, sales tax dip

Published

3 months ago

December 2, 2025

Press Room

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.”

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South Dakota

South Dakota lawmakers push bill criminalizing deepfakes nearer to governor’s desk

Published

4 hours ago

March 4, 2026

Press Room

South Dakota lawmakers push bill criminalizing deepfakes nearer to governor’s desk

John Hult
| South Dakota Searchlight

PIERRE — A bill from South Dakota Attorney General Marty Jackley to criminalize the creation or sharing of deepfakes was amended this week to more clearly define what constitutes nudity before it reaches Gov. Larry Rhoden’s desk.

The amendment, added on the floor of the House of Representatives, came in response to concerns about unintended consequences.

Senate Bill 41 creates a class of felony crime for the creation or distribution of images digitally altered to depict a person in a state of nudity or involved in a sexually explicit act, commonly referred to as deepfakes.

In testimony in the House Judiciary Committee on Monday in Pierre, Jackley pointed to the case of Mark Rathbun, a former Division of Motor Vehicles employee who is accused of taking images of women and girls from state databases and creating sexual images.“This is real, and it’s something that we unfortunately are seeing happen in our state,” Jackley said.

The judiciary committee voted 8-3 to send the bill to the House floor but not before a discussion on its potential to criminalize political memes.

The bill’s definition of nudity originally encompassed a partial state of nudity. Fort Pierre Republican Rep. Will Mortenson asked Jackley if that would include a fabricated topless photo. Jackley said yes. Then Mortenson asked if a fabricated image of Democratic Illinois Gov. J.B. Pritzker without a shirt, if shared by President Donald Trump on social media, would put the president in line for felony charges.

Jackley said a Pritzker image wouldn’t qualify because Pritzker is male, but Mortenson pushed back.

He noted that partially nude fabrications would be a felony if done with the intent to “self-gratify or alarm, annoy, embarrass, harass, invade the privacy of, threaten, or cause emotional, financial, physical, psychological, or reputational harm to that individual.”

Nothing in the bill specified that a person in a digitally fabricated topless image must be female.

“We just said that half-nude is a state of nudity, and so now he’s shirtless, and the point of this is to embarrass this guy,” Mortenson said of his topless Pritzker meme scenario.

Mortenson voted against the bill in committee but brought an amendment Tuesday to define nudity as inclusive of male or female genitalia, buttocks or the female nipple.

The amendment passed, but it did not address every concern about the bill.

Democratic Rep. Kadyn Wittman of Sioux Falls asked Jackley during the bill’s committee hearing why he didn’t use it to enhance penalties for people who film others in states of undress or participating in sexual activity against their will.

That behavior is a felony if it involves the recording of a minor, or if it happens repeatedly. The new penalties for deepfakes would be added to the same chapter of South Dakota law.

“Why is the first time hidden recording a misdemeanor generally, but a digitally fabricated image would automatically be a classified felony,” said Wittman.

Jackley said he feels that the creation of digitally manipulated sexual images, even if they aren’t shared, signals “significant criminal intent.” He told South Dakota Searchlight after the committee meeting that he’s open to addressing that issue, but that SB 41’s primary purpose was to target deepfakes.

On the House floor, Wittman was one of two representatives to say the bill’s felony penalties could be unnecessarily harsh in instances where young people make “a stupid decision” and create a deepfake.

“I feel like, in a lot of situations, this bill covers behavior that could be covered by a lower level of offense,” Wittman said.

Supporters countered that the creation of fake nudes can do real psychological damage to real people, and that the state needs to clearly signal that doing so is a serious crime.

“It’s only fun and games until it happens to you,” said Rep. Mary Fitzgerald, R-St. Onge.

The bill passed the House 60-6. It now moves to the state Senate, which passed the bill 32-0 on Jan. 16. The Senate would need to approve the amended version of the bill before it could be delivered to Gov. Larry Rhoden to sign or veto.

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South Dakota

SD Lottery Mega Millions, Millionaire for Life winning numbers for March 3, 2026

Published

16 hours ago

March 4, 2026

Press Room

The South Dakota Lottery offers multiple draw games for those aiming to win big.

Here’s a look at March 3, 2026, results for each game:

Winning Mega Millions numbers from March 3 drawing

07-21-53-54-62, Mega Ball: 16

Check Mega Millions payouts and previous drawings here.

Winning Millionaire for Life numbers from March 3 drawing

09-10-13-25-54, Bonus: 05

Check Millionaire for Life payouts and previous drawings here.

Feeling lucky? Explore the latest lottery news & results

Are you a winner? Here’s how to claim your prize

Prizes of $100 or less: Can be claimed at any South Dakota Lottery retailer.
Prizes of $101 or more: Must be claimed from the Lottery. By mail, send a claim form and a signed winning ticket to the Lottery at 711 E. Wells Avenue, Pierre, SD 57501.
Any jackpot-winning ticket for Dakota Cash or Lotto America, top prize-winning ticket for Lucky for Life, or for the second prizes for Powerball and Mega Millions must be presented in person at a Lottery office. A jackpot-winning Powerball or Mega Millions ticket must be presented in person at the Lottery office in Pierre.

When are the South Dakota Lottery drawings held?

Powerball: 9:59 p.m. CT on Monday, Wednesday, and Saturday.
Mega Millions: 10 p.m. CT on Tuesday and Friday.
Lucky for Life: 9:38 p.m. CT daily.
Lotto America: 9:15 p.m. CT on Monday, Wednesday and Saturday.
Dakota Cash: 9 p.m. CT on Wednesday and Saturday.
Millionaire for Life: 10:15 p.m. CT daily.

This results page was generated automatically using information from TinBu and a template written and reviewed by a South Dakota editor. You can send feedback using this form.

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South Dakota

Nebraska volleyball to play regular-season match in South Dakota

Published

1 day ago

March 3, 2026

Press Room

Nebraska volleyball to play regular-season match in South Dakota

Nebraska volleyball will play South Dakota State in a regular-season match in Brookings, S.D. The Huskers will face the Jackrabbits on September 2 at First Bank & Trust Arena.

Nebraska finished 2025 with a 33-1 overall record and was ranked No. 3 in the final AVCA poll of the season. South Dakota State was 23-5 and was the Summit League regular-season champions.

These two programs have faced each other before. They played a spring exhibition match in May 2025. The Huskers were victorious by a 4-0 sweep (25-18, 25-19, 25-17, 25-19).

Harper Murray led the Huskers in kills with 12, while also earning seven digs, five blocks and two aces. Andi Jackson delivered a double-double on the day, finishing with 11 kills and 10 blocks.

Nebraska is scheduled to play two exhibition games this spring. The Huskers will face Iowa State in Sioux Falls, S.D. on April 11 and Creighton in Omaha on April 17.

Contact/Follow us @CornhuskersWire (https://twitter.com/CornhuskersWire) on X (formerly Twitter) and like our page onFacebook (https://www.facebook.com/CornhuskersWire) to follow ongoing coverage of Nebraska news, notes and opinions.

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