South Dakota Deserves Straight Talk About the Budget

For Immediate Release

December 7th, 2025

Governor Larry Rhoden’s first budget address sounded simple: a conservative plan with clear goals. But look closer and it is full of contradictions South Dakotans cannot ignore. There are claims that do not hold up, raising serious questions about honesty, transparency, and whether we are really being told the truth about our state’s finances.

The governor talks about “limited government,” saying we should spend less and “do it well.” Yet his budget proposes tens of millions for new or expanded programs, from IT upgrades and prison expansions to tech college construction, a new law enforcement plane, and National Guard facilities. Whether these are good ideas or not, calling this “limited government” is hard to defend.

Rhoden also claims we do not spend one-time money on ongoing costs, but that is exactly what keeps happening. One-time funds are being used for building repairs and state employee pay raises. Short-term fixes might work for now, but they contradict the fiscal principles the governor claims to protect.

He says we avoid “gimmicks,” yet the state increasingly relies on unstable or temporary revenue. Special funds meant for other purposes have been tapped just to make ends meet, which is a textbook budget gimmick.

The governor also paints a mixed picture of the economy. He calls it “strong,” yet revenue is flat, projections have been missed for two years, and the state faces a tight fiscal year. A strong economy does not usually produce falling revenue in a state that depends on sales tax.

He insists sales tax and income growth move together. Yet wages rose 5.5 percent from 2022 to 2023 and 4 percent from 2023 to 2024, while sales tax revenue fell 2.6 percent in 2024 and another 0.6 percent in 2025. These trends don’t align.

And while the governor calls education a “top priority,” the budget gives schools a 0 percent increase this year. Worse, the state has repeatedly ignored its legal obligation to increase education funding. Words matter, but so do numbers, and right now the numbers do not match the rhetoric.

South Dakotans deserve a budget that is honest and straightforward, not full of contradictions. The speech may sound reassuring, but the numbers tell a different story. It is time to demand clarity, honesty, and consistency from our leaders.