SIOUX FALLS, S.D. (KELO) — South Dakota Gov. Kristi Noem says the state’s finances are now tighter.
And while President-elect Donald Trump has picked her to be secretary of the Department of Homeland Security, for now, she still holds office in Pierre, where she gave her budget address on Tuesday to lawmakers ahead of the upcoming session.
“Our revenue picture has tightened up this year,” Noem said.
Noem proposed the same boost for three significant categories.
“I am recommending that we give a 1.25% increase for the big three: for our schools, for our state employees and for our health care providers,” Noem said.
Following Noem’s address, KELOLAND News spoke with lawmakers about the 1.25% proposal.
“Compared to what we’ve been doing, that will feel like a cut to them, and so there will be a lot of fighting over that number,” said Republican Sen. Helene Duhamel of Rapid City, who will serve in the Senate during the 2025 legislative session. “I don’t know if there’s any flexibility, but that’s something that’s new that our ears perked up because right there the public schools, the big three will say, that’s a cut.”
“What stands out the most is one and a quarter percent given to the ‘big three,'” said Democratic Rep. Eric Emery of Rosebud, who will serve in the House. “That’s a little bit less than I expected. I think I would have liked to see maybe two and a half to three percent but, I think it’s going to be a big road ahead of us to climb that for the big three.”
The governor wants to see cuts in a few different areas.
“We’ll reduce the state match in funds for the temporary assistance for needy families,” Noem said. “Our economy is strong, and more South Dakotans are working than before, and I have asked the Board of Regents to propose two million dollars in budget reductions of their own. I propose reducing funding for South Dakota Public Broadcasting, to bring us in line with the national average.”
But Noem does want to dedicate some public dollars to private education.
“I am proposing that we establish education savings accounts for South Dakota students in this upcoming legislative session,” Noem said. “I’m setting aside $4 million in ongoing funds to stand up the program and to start providing support for South Dakota students. Now this investment will pay for a portion of private school tuition or curriculum for alternative education beginning with about $3,000 per student.”
One state-funded project which has received considerable attention is a proposed new men’s prison in Lincoln County. Noem laid out how she wants it funded.
“You have already set aside $567 million in the incarceration construction fund towards this project,” Noem said. “We are estimated that those dollars will bring in $76 million in interest just from being put away ahead of time to address the project. My budget meets the remaining need of $182 million in one-time dollars to fully fund the new prison.”
South Dakota’s legislative session begins Jan. 14. With Noem’s eventual resignation, whenever that may happen, to become the secretary of the Department of Homeland Security, current Lt. Gov. Larry Rhoden would become governor; he would then inherit the task of signing a budget crafted by the legislature.
