On Tuesday, South Dakota's lawmakers will support Republican Gov. Kristi Noem's Legislature plans on the session's opening day.
The lawmakers will prioritize workforce needs, budget, and tax cuts for the two-month session.
South Dakota's Lawmakers Support Noem's Plans
Noem will address the GOP-controlled Legislature on the first day of the session. She sent the Legislature her proposed budget last month, and now, lawmakers should craft a plan for the next fiscal year.
Republican House Majority Leader Will Mortenson said South Dakota's session would last about two months, which would help keep them focused on the most important topics.
"I tell my caucus often that our only two jobs we absolutely have to do are passing a budget and getting the hell out of there," Mortenson said.
Most Republican majority leaders support Noem's agenda partly because of South Dakota's strong finances. A state Bureau of Finance and Management analysis showed that state revenues surpassed the Legislature's 2023 prediction by 11%, or $115 million, from July through November, the first five months of the fiscal year.
Republican priorities include new prison construction, making college more affordable, addressing labor shortages, and ensuring the sustainability of long-term care in rural communities.
Furthermore, Democrats were primarily concerned with teacher salaries, pre-K education, and childcare concerns.
Noem has proposed a nearly $7.3 billion budget for the fiscal year 2025, emphasizing a lean budget amid the growing inflation. She demanded 4% increases for the state's big three priorities of K-12 education, health care providers, and state employees.
Mortenson claimed that budget writers would consider the 4% proposal in the context of the overall spending plan. He said he was encouraged that the governor would focus the vast majority of their ongoing dollars on core priorities.
Noem Proposes Permanent Tax Cuts
Noem also proposed making a temporary sales tax cut permanent, which approved the four-year reduction in 2023. Republican state representative Chris Karr filed a bill to allow the changes, citing years of surplus state revenue.
"Government collects taxes to provide certain services. When those services are provided, any excess dollars should go back to the people because that's who it belongs to," Karr said. Sales taxes are the primary source of state revenue for South Dakota.
Mortenson predicted that House Republicans would unite around a long-term reduction in the sales tax.
Senate Majority Leader Casey Crabtree stated that Senate Republicans will consider other potential tax cuts, including property taxes. "I think the conversation is what do we cut and how much do we cut going forward," he said.
Mortenson said that workforce demands were significant. According to the state Department of Labor and Regulation, South Dakota has a 2% unemployment rate as of November 2023, and over 20,000 job vacancies were posted online.
He also viewed college affordability as critical for their state's future to maintain young people in South Dakota and draw in others from out of state.
