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.”
The South Dakota Lottery offers multiple draw games for those aiming to win big.
Here’s a look at June 20, 2026, results for each game:
Winning Powerball numbers from June 20 drawing
16-20-44-48-50, Powerball: 15, Power Play: 2
Check Powerball payouts and previous drawings here.
Winning Lotto America numbers from June 20 drawing
08-14-31-41-52, Star Ball: 04, ASB: 03
Check Lotto America payouts and previous drawings here.
Winning Dakota Cash numbers from June 20 drawing
02-09-15-27-34
Check Dakota Cash payouts and previous drawings here.
Winning Millionaire for Life numbers from June 20 drawing
01-10-16-30-31, Bonus: 04
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.
SIOUX FALLS, S.D. (KELO) — You can celebrate Juneteenth in central Sioux Falls Saturday. The festivities start at 10 a.m. in Fawick Park with a Freedom Walk. Activities also include a Spoken Word, Car show demonstration, community games, a fashion, art and beauty expo, a talent show and a DJ battle.
Also in central Sioux Falls is the Festival of Cultures hosted by Lutheran Social Services. The American Patchwork Quartet will perform at 11 a.m. and Nepali dancers NSKK will take the stage at 12:30. It’s all happening at the Sioux Falls Coliseum. Then, the Parade of Flags will take place at 7:20 p.m. at the Levitt Lawn.
Join cancer survivor Lisa Soundy for for a Walk and Talk about cancer survivorship. Hear Lisa share her personal experience with cancer. The event starts at 9:30 a.m. at the Prairie West Library in western Soiux Falls. It is hosted by Avera McKennan Hospital.
Fly a kite at the Brookings Kite Festival. It goes from 10 a.m. to 4 p.m. Saturday and Sunday and a lighted kite show will go from 8:30 to10 in the evening on Saturday. It takes place at the Fishback Soccer Complex and will also include food trucks and kids games.
Also, enjoy the final day of Czech Days in Tabor. The festivities include a craft fair, kiddie parade, dumpling making demonstration and a lot more. The festivities start at 7 a.m. with a 5K and run through the night.
Head to Sioux Valley Cycle Club in Sioux Falls for an ATV race. Gates open at 1 p.m., practice starts at 3:45, and racing starts at 4:45. Admission is $10, but kids 6 and under are free.
Take in Teapot Days in Tea, South Dakota. Events include a parade at 10 a.m., the Mighty Thomas Carnival beginning at noon and fireworks at 10:15 in the evening in the city park.
Take a lunch break and enjoy live music in downtown Sioux Falls. Head to the Ampt! event at the Phillips Avenue Plaza from 11:30 a.m. to 1:30 p.m.
You can enjoy more music downtown later in the night at Levitt at the Falls. Hear folk songs from the American Patchwork Quartet and openers Alma Latina Grupo Multicultural and the Levitt Vocal Jam Camp Showcase. The music starts at 7 p.m. Admission is free.
There’s also free music to enjoy west river throughout the afternoon and evening at Wild Bill Days on Main Street in Deadwood. Other events include a downtown art festival, gold panning and blacksmithing demonstrations from 10 a.m. to 8 p.m.
See if you can catch any fish at Family Park in western Sioux Falls. All the needed gear is provided, but you can bring your own gear if you would like. It goes from 9 a.m. to 11 a.m., and it is completely free.
There’s another fishing opportunity much further north. Head north to Roy Lake State Park for Cops and Bobbers and fish with local law enforcement. All the needed equipment and bait will be provided. It goes from 9 a.m. to 11 a.m. at the Roy Lake Store Docks and fishing pier. A park pass is required.
Help support Feeding South Dakota at the 13th annual Prime Time Gala & Concert. The event includes a silent auction, live auction, food and music from Dierks Bentley, Muscadine Bloodline and Elizabeth Jo. Guest Check-in is at 4 p.m. at the Denny Sanford Premier Center.
Catch a show at the Orpheum Theater. It’s the last weekend to see Legally Blonde presented by the Premiere Playhouse. The show starts at 7 p.m.
Experience a yarn adventure at Prairie Road Yarn in Sioux Falls. The Yarn Adventure Truck will be paying a visit from 9 a.m. to 5 p.m.
The Falls Park Farmers market in Sioux Falls is open from 8 a.m. to 1 p.m. The Brandon Farmers Market is open from 9 a.m. to 1 p.m. at 925 N. Splitrock Boulevard. The Brookings Farmers Market is open from 9 a.m. to noon in the 300 block of 6th Avenue.
The South Dakota Lottery offers multiple draw games for those aiming to win big.
Here’s a look at June 19, 2026, results for each game:
Winning Mega Millions numbers from June 19 drawing
13-16-21-26-50, Mega Ball: 12
Check Mega Millions payouts and previous drawings here.
Winning Millionaire for Life numbers from June 19 drawing
02-20-28-51-54, Bonus: 02
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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