South Dakota

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

Published

4 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

Coaches select all-state boys basketball players from Class AA, A & B

Published

3 hours ago

March 28, 2026

Press Room

Here are the 2025-26 South Dakota Basketball Coaches Association All-State boys basketball teams:

Class AA

First Team

Sam DeGroot, SF Lincoln, 6-7, sr., F (20.9 points per game, 8.8 rebounds per game, 2.2 assists per game)

Blake Ellwein, Huron, 6-10, sr., G (22.6 ppg, 7.6 rpg, 2.1 apg)

Gavin Shawd, Tea Area, 6-1, jr., G (21.2 ppg, 3.8 rpg, 2.5 apg)

Stellen Larson, Harrisburg, 6-3, sr., F (14.3 ppg, 9.5 rpg, 1.7 apg)

Carter Buisker, Watertown, 6-3, sr., G (18.8 ppg, 2.3 rpg, 3.9 apg)

Brody Schafer, SF Lincoln, 6-0, jr., G (9.8 ppg, 1.9 rpg, 6.3 apg)

Second Team

Colton Smith, Mitchell, 6-5, sr., G-F (17.3 ppg, 9.4 rpg, 3 apg)

Davis Chase, Huron, 6-8, jr., F (15.6 ppg, 6.3 rpg, 1.6 apg)

Ayuel Deng, Brandon Valley, 6-3, sr., G (13.5 ppg, 6 rpg, 2 apg)

Sam Ericsson, SF Lincoln, 6-3, sr., G (13.4 ppg, 3.8 rpg, 2.4 apg)

Colby Nuttbrock, SF Jefferson, 6-5, jr., F (19 ppg, 7 rpg, 1.9 apg)

Grifin Wiebenga, Tea Area, 6-4, jr., F (16.9 ppg, 5.4 rpg, 3.4 apg)

Honorable Mention

Jackson McClemans, Watertown, 6-5, sr., G-F (14.8 ppg, 3.8 rpg, 6.0 apg)

Mason Clark, O’Gorman, 6-0, sr., G (13.1 ppg, 3 rpg, 3.3 apg)

Memphis Bylander, SF Roosevelt, 6-5, sr., F (11.2 ppg, 3 rpg, 2.2 apg)

Justin Bilal, SF Roosevelt, 6-5, sr., F (10.2 ppg, 4 rpg, 1.6 apg)

Hayden Rock, Sturgis, 5-11, sr., G (21.4 ppg, 4 rpg, 3.4 apg)

Bergan Tetzlaff, Brookings, 6-6, sr., F (15.3 ppg, 8.8 rpg, 3.2 apg)

• Player of Year — DeGroot.

• Repeat Selections — 2025 (Ellwein, DeGroot and Ericsson, first team; Schafer, Smith and Wiebenga, second team; 2024 (Ellwein and Smith, first team).

Class A

First Team

Brant Wassenaar, SF Christian, 6-4, jr., G (22.8 ppg, 7.4 rpg, 5.5 apg)

Marvin Richard III, Pine Ridge, 6-3, sr., G (30.3 ppg, 6.3 rpg, 5.5 apg, 92 steals)

Connor Mebius, West Central, 5-10, jr., G (17.6 ppg, 3.4 rpg, 5.6 apg)

Trey Hansen, Vermillion, 6-4, sr., G (25.9 ppg, 8 rpg, 6.1 apg, 68 steals)

Jackson Wadsworth, Hamlin, 6-3, jr., G (21.2 ppg, 5.3 rpg, 4.4 apg)

Sully Felberg, Clark-Willow Lake, 6-8, so., F (15.6 ppg, 7 rpg, 2.3 apg)

Second Team

Will Kuhl, West Central, 6-10, sr., F-C (15.7 ppg, 6.7 rpg, 1.6 apg)

Wyatt Gylten, St. Thomas More, 6-4, sr., G-F (19.2 ppg, 7 rpg, 4.2 apg)

Ryder Johnson, Groton Area, 6-5, sr., G (16.4 ppg, 5.7 rpg, 2.9 apg)

Riley Casey, Little Wound, 6-1, sr., G (26.8 ppg, 9.2 rpg, 5.8 apg, 75 steals)

Boden Stevenson, Hamlin, 6-5, jr., F (17.2 ppg, 6.1 rpg, 5.1 apg)

Tatum Sorensen, Dakota Valley, 6-2, sr., G (22.5 ppg, 6.7 rpg, 3.6 apg, 60 steals)

Third Team

Eddie Duffy, Stanley County, 6-2, jr., G-F (20.2 ppg, 6.8 rpg, 3.7 apg)

Tate Gerdes, Lennox, 6-3, sr., G (15.5 ppg, 6 rpg, 4 apg)

Aiden Hanssen, Lennox, 6-0, jr., G (17.8 ppg, 6 rpg, 3 apg)

Chris Bevers, Clark-Willow Lake, 6-3, jr., G (14.3 ppg, 6 rpg, 3 apg)

Zane Messick, Hill City, 6-0, sr., G (19 ppg, 4.3 rpg, 3.1 apg, 59 steals)

Cooper Goodbary, SF Christian, 6-4, sr., F (12.5 ppg, 5.6 rpg, 2.9 apg)

Honorable Mention

Luke Sheppard, Flandreau, 6-5, sr., F (16.3 ppg, 8.5 rpg, 5.2 apg)

Damien Clown, Cheyenne-Eagle Butte, 6-0, sr., G (15 ppg, 3 rpg, 2 apg)

Carter Craven, Winner, 6-6, jr., F (23.4 ppg, 10.7 rpg, 2.2 apg)

Brady Hiltunen, Sioux Valley, 6-2, jr., G (17 ppg, 4.5 rpg, 3.4 apg)

Levi Elk Nation, Cheyenne-Eagle Butte, 6-2, sr., G (13 ppg, 6 rpg, 5 apg)

Isaak Hunter, Miller, 6-4, sr., F (18.4 ppg, 7.3 rpg, 3 apg)

Paxton Deal, Stanley County, 6-0, sr., G (16.3 ppg, 3.8 rpg, 2.9 apg, 47 steals)

• Player of Year — Wassenaar.

• Repeat Selections — 2025 (Richard and Wassenaar, first team; Hansen, Gerdes and Mebius, second team; Craven, Johnson, Hunter and Felberg, third team; Goodbary and Kuhl, honorable mention); 2024 (Richard, first team; Hansen, honorable mention).

Class B

First Team

Grant Wilkinson, De Smet, 6-10, sr., C (24.4 ppg, 18.8 rpg, 45 blocks)

Teelen Kjerstad, Wall, 6-3, jr., G (27.9 ppg, 5.3 rpg, 4 apg, 91 steals)

Wesley Wittler, Sully Buttes, 6-1, sr., G (22.3 ppg, 10.5 rpg, 2.5 apg, 81 steals)

Brady Schroedermeier, Viborg-Hurley, 6-2, sr., F (22.7 ppg, 9.4 rpg, 2.7 apg, 70 steals)

Kamden Keszler, Castlewood, 6-3, jr., G (19.2 ppg, 3.5 rpg, 3.2 apg)

David Walter, Freeman, 6-5, so., G (17.7 ppg, 7.5 rpg, 3 apg)

Second Team

Brycen Bruening, Parkston, 6-2, jr., G (19.7 ppg, 6 rpg, 2.3 apg, 61 steals)

Colby Flowers, Wessington Springs, 6-5, sr., F (19 ppg, 9 rpg, 3 apg)

MJ Diehm, Lyman, 5-11, jr., G (19 ppg, 3 rpg, 6 apg, 60 steals)

Chance Schoenfeld, Deubrook Area, 6-9, sr., F-G (19.3 ppg, 8 rpg, 48 blocks)

Brooks Jett, Aberdeen Christian, 6-5, jr., f (13.9 ppg, 9.6 rpg, 29 blocks)

Ben Weber, Bridgewater-Emery, 6-6, sr., F (18.5 ppg, 10.7 rpg, 6 apg)

Third Team

Parker Graff, Wessington Springs, 6-1, sr., G (16 ppg, 5 rpg, 2 apg)

Tate Sorensen, Freeman, 6-2, sr., F (10.3 ppg, 5.6 rpg, 1.8 apg)

Emmet Dinger, Wall, 6-3, sr., F (15.7 ppg, 5 rpg, 2.5 apg)

Holden Wollman, Bridgewater-Emery, 6-2, sr., G (21.8 ppg, 6 rpg, 2 apg)

Jake Austin, Viborg-Hurley, 5-9, sr., G (12 ppg, 2.1 rpg, 2.3 apg)

Lucas Peskey, Iroquois-Lake Preston, 6-0, jr., G (19.6 ppg, 5.8 rpg, 3.2 apg, 56 steals)

Honorable Mention

Noah Luethmers, De Smet, 6-3, jr., G (14.3 ppg, 4.4 rpg, 2.2 apg)

Dawsen Volmer, Lyman, 6-4, jr., F-G (13 ppg, 7 rpg, 40 blocks)

Colt Keiser, Gregory, 6-6, sr., F (18.3 ppg, 10.7 rpg, 47 blocks)

Westyn Thorpe, Leola-Frederick Area, 5-10, sr., G (10.8 ppg, 3.8 rpg, 4.2 apg)

Kassen Keough, Langford Area, 6-0, sr., G (21 ppg, 5 rpg, 45 steals)

Hogan Hlavacek, Waubay-Summit, 6-7, so., C-F (16 ppg, 10.4 rpg, 2.2 apg)

Caleb Richmond, Wolsey-Wessington, 6-1, sr., G (15.3 ppg, 5 rpg, 4 apg)

• Player of Year — Wilkinson.

• Repeat Selections — 2025 (Wilkinson and Wittler, first team; Schroedermeier, Flowers and Weber, second team; Kjestad, Walter, Jett, Graff and Dinger, third team; Bruening, honorable mention); 20024 (Graff, third team; Weber and Wittler, honorable mention).

Follow Watertown Public Opinion sports reporter Roger Merriam on X (formerly known as Twitter) @PO_Sports or email: rmerriam@thepublicopinion.com

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South Dakota

Governor Rhoden signs school lunch bill into law

Published

15 hours ago

March 27, 2026

Press Room

Governor Rhoden signs school lunch bill into law

SIOUX FALLS, S.D. (Dakota News Now) – Governor Rhoden officially signed HB 1082 into law on Friday, March 27.

HB 1082 is a bill that establishes parameters for reimbursing school districts that provide free or reduced-price meals to students.

Representative Kadyn Wittman, who has worked to pass the bill for several years, expressed excitement and gratitude in a post to Facebook on Friday.

“10,000 kids across our state will now have access to free school meals. No stigma. No barriers. Just the support they need to learn and grow,” wrote Wittman.

“So incredibly grateful to everyone who made this happen. This is a big win for South Dakota families!”

You can see the full bill and its sponsors here.

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South Dakota

Retired Air Force four-star general Maryanne Miller speaks at South Dakota Mines

Published

1 day ago

March 27, 2026

Press Room

Retired Air Force four-star general Maryanne Miller speaks at South Dakota Mines

RAPID CITY, S.D. (KOTA) – Students at South Dakota Mines heard Wednesday from retired four-star general Maryanne Miller about her journey to the highest ranks of the U.S. military.

Miller is a retired four-star U.S. Air Force general. She is the only member of the Air Force Reserve ever to be promoted to this level.

She spoke about finding greatness and living a life of fulfillment. Her stories came from her time in the Air Force and as a volunteer for Saint Teresa of Calcutta’s Missionaries of Charity.

“We so much get focused on what is our next step in life, what’s the next career move, how do we make ourselves better in our career, and we forget about how do we make ourselves better as a human being,” Miller said. “Because they have to go tandem. If it’s not tandem, you’re going to get off track.”

Miller was commissioned in 1981 and rose through the ranks before becoming a four-star general in 2018. She was the only woman serving as a four-star officer in the military at the time. She retired in 2020 after serving for almost 40 years.

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