South Dakota lawmakers have approved a $7.5 billion balanced budget for the 2027 fiscal year. The spending plan is up about 2.4%, or $172 million, from last year.
Senator Mark Lapka says the Legislature began budget talks in December facing what he called a “bleak” financial outlook. But higher‑than‑expected revenue projections—about $30 million above the governor’s estimate—allowed lawmakers to boost funding in key areas.
The state’s “big three” priorities—education, state employees, and Medicaid providers—will receive 1.4% increases, totaling about $34.5 million more than originally proposed. Some lawmakers opposed the budget, arguing the increases fall short of state law requiring education funding to rise by inflation or 3%, whichever is lower.
The budget includes $3.1 billion in federal funds and authorizes the equivalent of 14,121 full‑time employees, up slightly from last year.
Lawmakers also approved several targeted increases, including funding for school meal reimbursements, Medicaid reimbursement rates for rural hospitals and clinics, and additional positions in state agencies. A separate bill revising the current year’s budget adds $111 million for one‑time investments in security upgrades, technology, and technical college equipment.
Thursday marked the final day of the legislative session, with one additional day scheduled March 30 to consider any vetoes.
