South Dakota

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

Published

3 months ago

December 2, 2025

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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: GFP Commission modifies bounty program – focuses on youth trapping and coyote removal

Published

1 hour ago

March 6, 2026

Press Room

South Dakota: GFP Commission modifies bounty program – focuses on youth trapping and coyote removal

The South Dakota Game, Fish and Parks (GFP) Commission passed a resolution to end the current Nest Predator Bounty Program at their March meeting in Pierre and create two separate programs within the existing budget and time period.The Nest Predator Bounty Program began in 2019 with the implementation of the Second Century Initiative. This reinvigorated trapping as an outdoor recreational opportunity and a means to get youth engaged and spend more time outdoors.

Data collected from the program shows that the level of youth participation over the past 4 years has exceeded 30%. In 2024 and 2025, youth participation reached 46%.”The Nest Predator Bounty Program has been incredibly successful at engaging youth in wildlife management and our tradition of trapping in South Dakota,” said Kevin Robling, GFP Secretary.

In total, 342,743 nest predators were removed since the program’s inception.”Intense nest predator removal in localized areas during the nesting season can contribute to higher nest success and we encourage individuals to continue to participate in this management activity,” continued Robling. “In 2026, we are going to focus on continuing to get youth outdoors and addressing our coyote population.”

As part of this focus, the current Nest Predator Bounty Program is ending. The allocated $500,000 for this program will be split into two separate programs: the Youth Trapping Recruitment Program and the Coyote Bounty Program.

Youth Trapping Recruitment Program

The Youth Trapping Recruitment Program will be open for South Dakota youth age 17 and under. Tails from raccoon, striped skunk, badger, opossum, and red fox will be worth $10.The program will run from March 1-July 1, unless the $200,000 limit is reached first.”Youth recruitment and retention in trapping and wildlife management is a key component of this program,” said Robling. “We are thrilled with the amount of youth participation we have seen, so we want to continue this momentum.”

Coyote Bounty Program

The Coyote Bounty Program will be open for all South Dakota residents. Tails from coyotes will be worth $30.The program will run from April 1-July 1, unless the $300,000 limit is reached first.”Controlling the coyote population is critical for both our agricultural industry and wildlife populations,” stated Robling. “The newly created Coyote Bounty Program will assist in the management of these predators to help protect newborn calves and lambs for agricultural producers and enhance fawn survival for deer and antelope.”

Tail Submission Opportunities

Individuals wishing to participate in either of these programs may submit tails to their local GFP office during designated tail turn in opportunities. Households are eligible to submit up to $590 worth of tails in each program.

–South Dakota Game, Fish and Parks

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South Dakota

SD Lottery Millionaire for Life winning numbers for March 5, 2026

Published

13 hours ago

March 6, 2026

Press Room

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

Here’s a look at March 5, 2026, results for each game:

Winning Millionaire for Life numbers from March 5 drawing

17-20-23-30-33, 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

DOE selects nine school districts for 2026 South Dakota Perkins Reserve grant

Published

1 day ago

March 5, 2026

Press Room

DOE selects nine school districts for 2026 South Dakota Perkins Reserve grant

SIOUX FALLS, S.D. (Dakota News Now) – Nine school districts have been selected as recipients of the 2026 Perkins Reserve Grant by the South Dakota Department of Education.

The grant provides major equipment upgrades for Career and Technical Education programs, helping to equip students with the skills and experiences needed for post-secondary education and the workforce.

“CTE programs are constantly evolving to match the pace of workforce needs,” said Secretary of Education Dr. Joseph Graves.

“The South Dakota Perkins Reserve Grant aids schools in equipping students with current technologies, resources, and tools, offering students a realistic, hands-on learning experience that will strengthen their marketability to colleges or employers once they leave the K-12 education system.”

The following school districts have been named as the 2026 recipients:

Aberdeen School District:
- Awarded $30,233 for new precision machine equipment for the manufacturing program.
De Smet School District:
- Awarded $15,898 for modernizing metal fabrication within agriculture programs.
Lake Preston School District:
- Awarded $43,160 for expansion of program offers in multiple career clusters to strengthen industrial alignment.
McLaughlin School District:
- Awarded $11,997 to purchase equipment to offer a new culinary arts program.
Menno School District:
- Awarded $32,844 to purchase small engines and attend professional development opportunities to enhance the agricultural mechanics program.
Mitchell School District:
- Awarded $38,663 for the modernization of the automotive technology lab.
Timber Lake School District:
- Awarded $42,400 for the expansion of agriculture course offerings to strengthen industry alignment.
Wakpala School District:
- Awarded $40,145 to purchase a skid steer simulator to enhance the agriculture and construction program.
Wolsey-Wessington School District:
- Awarded $26,201 to purchase industry-aligned equipment to enhance the agriculture and construction program.