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
South Dakota GFP Commission Holds July Meeting
Definition of a Buck Deer and Bull Elk Antler
The Commission finalized a clean-up to remove “polished antler” and replace with “antler” from the definition of a buck and bull to allow an individual to harvest a velvet antlered deer or elk.
Spring and Fall Turkey Seasons
The Commission made several changes to the spring and fall turkey seasons.
For the Spring Turkey Season, references to federal property closures were removed from administrative rule and the Day and Codington County combined unit was separated into county specific units for Day (PST-22A) and Codington (PST-05A) counties.
Changes to the Fall Turkey Season include a weapons restriction change allowing for the use of rifles or shotguns for hunting turkeys in the fall for all units, except for Minnehaha County. In addition, the changes to fall turkey unit boundaries will result in the same Spring and Fall turkey unit boundaries for all units, except for the Black Hills.
The Commission closed Bennett and Sanborn counties to spring firearm turkey hunting. The Commission closed Gregory and Mellette counties to fall turkey hunting and opened Hughes County. All spring and fall turkey hunting season unit license numbers were finalized.
Tagging and Transportation of Shooting Preserve Harvested Pheasants
The Commission adopted additional allowances for the transportation of harvested birds from a private shooting preserve directly to a lodge or cleaning facility not located on permitted acres prior to tagging. This finalization is the result of a public petition.
PROPOSALS
Aquatic Invasive Species Regulations
The Commission proposed to add golden mussels to the current list of Aquatic Invasive Species. Currently, golden mussels have established populations in western North America and are spreading east. They have similar effects as zebra mussels. They are not in South Dakota at this time.
The Commission also proposed to exclude phragmites species from types of vegetation that can be used as blind material on boats when being launched or trailered. Phragmites could be used as blind material, but cannot be transported from the waterbody.
Bait Regulations
The Commission proposed to remove the requirement to submit an annual summary of bait harvested for resident bait dealers. Resident bait dealers who trap their own bait would still be required to maintain daily records of bait trapped.
Muskellunge Limits
The Commission proposed to modify the daily and possession limit of muskellunge and northern-muskellunge (tiger) cross from catch and release to 1 daily, 2 in possession with a 45-inch minimum length limit for inland waters.
Fishing Tournaments
The Commission proposed to modify the dates when a fishing tournament cannot occur to clarify fishing tournaments cannot occur on the Friday of the 4th of July weekend, if the 4th falls on a Friday, Saturday, Sunday or Monday.
Fish Pathogens
The Commission proposed to update the list of fish pathogens of regulatory concern used for fish importation permit requirements. This change would reduce the regulatory burden on importers and suppliers by reducing the number of pathogens that must be tested for. The proposed changes reflect current fish health standards and disease risk assessments while maintaining safeguards to prevent the introduction of significant fish pathogens into South Dakota waters.
Paddlefish Transportation
The Commission proposed to modify the transportation requirements for paddlefish harvested during the archery season below Gavins Point Dam to allow for harvested paddlefish to be cleaned, including removal of the head, skin and tail, prior to transport.
Bobcat Hunting Season
The Commission proposed the 2026-2027 and 2027-2028 Bobcat Hunting Season with no recommended changes to administrative rule from past years. With no changes to rule, the current season structure will be retained.
Endangered and Threatened Species
The Commission proposed to remove the Eskimo curlew and Least tern from the list of
endangered birds.
The Eskimo curlew is believed to be extinct throughout its range. The last confirmed
observation occurred in Barbados in 1963, and there are no records of the species in the South Dakota Nongame Conservation Database.
The Least tern was removed from the Federal List of Threatened and Endangered Species in 2021. In South Dakota, Least terns have been monitored annually for more than 30 years, and recovery criteria have been met for multiple consecutive years, including the most recent monitoring period.
Public Comments Being Accepted
To hear the discussion on these topics, audio from the meeting is available through South Dakota Public Broadcasting and will soon be available on the GFP website as part of the meeting archive.
To see these topics in their entirety, visit gfp.sd.gov/commission/information.
To be included in the public record and to be considered by the Commission, comments must include a full name and city of residence and be submitted by 11:59 p.m. CDT on Sept. 6.
The next GFP Commission meeting will be held in Winner, September 10-11.
South Dakota
MN officials warn dogs adopted from South Dakota show ‘high prevalence of canine brucellosis’
Image on the left shows a dog waiting for adoption in a shelter (Photo by Beata Zawrzel/NurPhoto via Getty Images). image on the right shows an optical microscope view of bacterium brucella canis causes brucellosis (Photo by: BSIP/Education Images/Un (Getty Images)
The Minnesota Board of Animal Health is warning that some dogs adopted from South Dakota are testing positive for canine brucellosis, a contagious and uncurable infection.
Dogs from South Dakota carrying canine brucellosis
By the numbers:
State officials say that so far in 2026, there have been seven canine brucellosis positive dogs traced to South Dakota.
What they’re saying:
Companion Animal Program Veterinarian Dr. Steve Kivisto shared the following statement on the matter.
“We’re evaluating new import requirements and quarantine procedures for dogs coming into Minnesota from South Dakota due to a high prevalence of canine brucellosis in dogs rescued from that geographic area in the past few years,” said companion animal program veterinarian Dr. Steve Kivisto. “We’ve also had recent cases imported from other states and will consider additional requirements if those also prove to contain a pattern of canine brucellosis.”
Dig deeper:
Canine brucellosis is an infection that primarily affects dogs, but there are strains capable of infecting other species, including humans.
The infection in dogs is not curable, and should an owner choose to attempt treatment, their pet could still continue to shed the bacteria. Infected dogs would either need to be quarantined for life or humanely euthanized to prevent the spread.
People who live with or work closely with animals are also at risk of contracting brucellosis.
What you can do:
Officials say anyone bringing dogs into Minnesota for resale or adoption must have a veterinarian examine the animal and sign off on a certificate of veterinary inspection certifying that it appears free from disease.
Testing is also highly recommended since infected dogs can appear healthy.
The Source: This story uses information shared by the Minnesota Board of Animal Health.
South Dakota
South Dakota T. rex could bring $30 million or more at auction
A Tyrannosaurus rex fossil discovered on a ranch in western South Dakota will be auctioned off in New York City on Tuesday with a possible sale price of $30 million or more.
The 38-foot long skeleton, nicknamed Gus, stands more than 12 feet tall and has one of the most complete T. rex skeletons ever found. According to Sotheby’s auction house, which is handling the sale, Gus could bring the highest sale price ever for a dinosaur fossil.
The dinosaur is from the late Cretaceous Period and was believed to have lived on Earth 67 million years ago.
The Harding County ranch where the skeleton was found lies in the famed Hell Creek Formation, a geological region of northwestern South Dakota and parts of Montana, North Dakota and Wyoming where dinosaur finds are fairly common.
Several other major dinosaur finds have been made there, including Sue, the famous T. rex discovered in 1990. After legal wrangling over ownership, Sue was auctioned in 1997 at a sale price of $8.3 million to the Field Museum of Natural History in Chicago, where it remains today.
(Photo: Malcolm Ritter)
The first piece of Gus, a metatarsal from the dinosaur’s foot, was found in 2021 sticking out of the ground on a Harding County ranch owned by Gary and Dana Licking. The find was made by paleontologists with Theropoda Expeditions, a Texas company specializing in commercial excavation, preparation and mounting of dinosaur fossils.
The fossil consists of 183 bone elements, making up 61% of the possible bones in the dinosaur’s body and representing 75% to 80% of the original bone mass by weight, Sotheby’s said.
The dinosaur Sue is 40 feet long and 13 feet tall and is considered the largest and most complete T. rex skeleton ever discovered at 90% of possible bone mass.
“This is our longest-term project ever,” Cassandra Hatton, worldwide head of Sotheby’s Science & Natural History division, said in the video. “From the day the first bone was discovered, we’ve been going back and forth to South Dakota to oversee this whole process.”
The lowest opening bid accepted will be $19 million, with an estimated sale price up to $30 million or more depending on buyer interest, Sotheby’s said.
Gus is named after rancher Gary Licking, whose nickname was Gus. Licking died at age 67 in February 2022, before the full extent of the T. rex skeleton was known.
Gary and Dana Licking married in 1983 and lived on their family ranch 11 miles west of Buffalo, according to Gary’s obituary.
Dana Licking said in Sotheby’s video that she was impressed at the level of skill and professionalism displayed by the paleontologists who discovered the skeleton.
“I’m really grateful that they found it because it could have been lost and nobody ever would learn anything about it,” she said.
Walter Stein, owner of PaleoAdventures in Belle Fourche, in western South Dakota, is an independent paleontologist who is also working to uncover fossils in the Hell Creek Formation.
Western South Dakota is likely to remain a hotbed for discovery of dinosaur fossils, said Stein, who last year opened the Dinosaurs of the Hell Creek Museum in Belle Fourche, a 6,500 square-foot museum with a working paleontology lab, interactive exhibits and dinosaur displays.
“Finding a Tyrannosaurus rex skeleton with 183 bones doesn’t happen every day,” he said.
Stein said the auction of Gus could lead to a purchase by either a museum or a private individual or group.
But it is unlikely an American museum would have the funding to acquire Gus because many are struggling or struggling financially, Stein said. Across the world, however, interest remains high in major fossils in countries where funding may be more accessible, such as in Japan, Korea, China, Dubai, Saudi Arabia or in Europe, Stein said.
“On the one hand, I would love for this and every fossil I collect to go to a museum,” he said. “However, there’s so many dinosaur specimens and skeletons on display, it’s not going to affect the science that much if it ends up in private hands.”
— This story originally published on southdakotanewswatch.org.
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