South Dakota Governor Noem Proposes $7.3B Budget

South Dakota Governor Kristi Noem has proposed a leaner budget for fiscal year 2026, amounting to $7.29 billion, which includes $4 million earmarked for a new Education Savings Account program aimed at providing up to $3,000 per student for private school tuition or alternative education. Despite a slight increase in overall budget figures, Noem's proposal includes nearly $72 million in cuts due to reduced sales tax collections and the end of federal COVID-19 stimulus funding. While she assured that public school funding would remain intact, the proposed funding increase for public education and healthcare is only 1.25%, falling short of current inflation rates. Noem's budget reflects a commitment to maintaining a balanced budget while addressing ongoing economic challenges, as lawmakers prepare to review her proposals in the upcoming legislative session. Additionally, she emphasized that the recent cuts are not necessarily reflective of an economic downturn, but rather a need to adjust spending following a period of increased funding availability. If confirmed as the Secretary of Homeland Security, Noem is expected to resign as governor, leading to a transition in state leadership.