(SDBA – Sioux Falls, SD) Governor Larry Rhoden presented his first budget today, proposing no raises for teachers, healthcare providers and state employees.
Governor Rhoden says his budget follows core principles of fiscal responsibility.
Rhoden’s budget proposes 51-point-6 million dollars in new ongoing revenue but keeps compensation flat for the so-called Big Three budget categories.
The governor says modest sales tax growth following exceptional pandemic-era increases means the state must be conservative.
Major investments include 13-point-2 million dollars to staff the new Rapid City women’s prison and up to 15 million dollars each in zero-percent interest loans for airport expansions in Sioux Falls and Rapid City.
Rhoden also plans to address property tax relief next month.
“I share the desire to cut property taxes. But slashing healthcare, education, and public safety is not the way to do it.”
The governor left 14 million dollars unallocated for legislative priorities when lawmakers convene in January.
Lieutenant Governor Larry Venhuizen says Governor Rhoden’s budget reflects South Dakota’s strong fiscal management.
Venhuizen told legislators that credit rating agencies recently praised South Dakota’s financial stewardship.
“That’s the budget you are going to hear today. It includes some tough choices, but it keeps South Dakota on a very strong financial footing and we can all be proud of that.”
Governor Rhoden’s budget increases state reserves to 12.5 percent, up from the traditional 10 percent floor.
The budget proposes no raises for teachers, healthcare providers and state employees.
The budget maintains South Dakota’s 137th consecutive year of balanced budgets.
The governor says agricultural struggles are affecting state revenues.
“Ag is king in South Dakota. When ag does well, the state does well. But when ag struggles, our growth tends to slow down.”
The budget proposes 51-point-six million dollars in new ongoing revenue with major investments in the new women’s prison and airport expansions.
Rhoden left 14 million dollars unallocated for legislative priorities.
