Governor Larry Rhoden gave his budget address to state lawmakers Tuesday.
During the address, Rhoden proposed no increases in funding to the so-called “Big Three” of K-12 schools, healthcare providers, or state employees.
Rhoden says even with zero increase this year, state funding for the ‘Big Three’ over the last eight years has been 6.2% ahead of what’s required by statute.
Rhoden also said the state is projecting revenue growth.
Despite that, he said ongoing revenues are currently $7 million below expectations.
The 101st session of the South Dakota legislative session formally begins January 13, 2026.













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