>> THIS IS A PRODUCTION OF SOUTH DAKOTA PUBLIC BROADCASTING.

♪♪ >> GOOD AFTERNOON AND WELCOME TO SDPB'S SPECIAL COVERAGE OF THE FISCAL YEAR 2024 BUDGET ADDRESS FROM GOVERNOR KRISTI NOEM.

I'M JACKIE HENDRY, JOINED TODAY BY STPB'S POLICY REPORTER.

THIS IS HER CHANCE TO OUTLINE HER 18-MONTH BUDGET PRIORITIES AHEAD OF THIS SESSION.

ONE OF THE TOPICS WE EXPECT TO HEAR ABOUT TODAY IS HER CAMPAIGN PROMISE FOR RE-ELECTION TO REMOVE THE SALES TAX ON GROCERIES.

LEE, WHAT HAVE YOU BEEN HEARING ON THAT INCIDENT >> THAT'S RIGHT, JACKIE.

THE GOVERNOR WILL OUTLINE HOW SHE PLANS TO CRAFT THE STATE BUDGET, WITH A $100 MILLION TO $116 MILLION TAX CUT INVOLVED THERE.

YOU KNOW, THIS IS A REALLY BIG POLICY PROPOSAL, AND PRELIMINARILY WHAT I'M HEARING FROM SOME SENATORS IS A LITTLE BIT OF HESITANCY ABOUT THE IDEA.

WE'LL SEE IF THE GOVERNOR IS ABLE TO MOVE SOME SENATORS ON THIS IDEA, FOLLOWING THIS SPEECH.

YOU KNOW, THIS IS SOMETHING THAT CAME UP LAST YEAR DURING THE LEGISLATIVE SESSION.

IT PASSED THE HOUSE.

BUT QUICKLY FAILED IN THE SENATE.

THIS IS A NEW LEGISLATURE.

AND, SO, A LOT OF NEW IDEAS AND NEW APPROACHES TO THIS IDEA SO WE'LL SEE HOW THIS GOES IN THE UPCOMING LEGISLATIVE SESSION.

>> AS WE WAIT FOR THE SPEECH TO GET LOCAL, ONE OF THE OTHER TOPICS I WOULD IMAGINE -- AND WE'RE GOING TO GO THE FLOOR.

>> THE JOINT SESSION OF THE HOUSE AND SENATE WILL COME TO ORDER.

TODAY I WILL LEAD US IN PRAYER, AND THEN SPEAKER-ELECT BARTELS WILL LEAD US IN THE PLEDGE.

[ BANGING GAVEL ] LET'S PRAY.

LORD, GOD, WE ARE BROUGHT HERE TODAY AS LEADERS WHO HAVE BEEN ELECTED TO SERVE OUR STATE.

LORD, SOUTH DAKOTA'S A STATE THAT'S BEEN RICHLY BLESSED BY YOU.

AND WE KNOW THAT WE CERTAINLY HAVE OUR CHALLENGES, BUT WE TRUST THAT YOU WILL HELP US TO MEET THEM AND TURN THESE CHALLENGES INTO OPPORTUNITIES.

YOU HAVE BLESSED SOUTH DAKOTA WITH HISTORIC GROWTH.

YOU HAVE WORKED THROUGH OUR PEOPLE TO MAKE THIS STATE AS STRONG AS IT HAS EVER BEEN.

AS THIS LEGISLATURE MEETS TO CONSIDER OUR PATH FORWARD, WE PRAY FOR YOUR GUIDANCE, WE PRAY FOR YOUR WISDOM AND FOR YOUR CONTINUED BLESSING.

OUR STATE MOTTO IS CLEAR.

UNDER GOD, THE PEOPLE RULE.

UNDER YOU, THE PEOPLE OF SOUTH DAKOTA SENT US TO PIERRE TO SERVE THEM.

LORD, WE JUST PRAY THAT YOU WOULD HELP TO OPEN OUR EARS AND QUIET OUR HEARTS.

HELP US TO UNDERSTAND THE ABUNDANCE OF YOUR BLESSING.

HELP US TO KEEP SOUTH DAKOTA SAFE AND STRONG.

YOUR HOLY SCRIPTURE SAYS IN THE BOOK OF MATT EWE, FOR WHERE YOUR TREASURE IS, THERE YOUR HEART WILL BE ALSO.

HELP US TO USE THESE TREASURES WISELY ON BEHALF OF THE PEOPLE THAT WE SERVE IN SOUTH DAKOTA.

YOUR BLESSING WILL CONTINUE TO BE POURED OUT ON US AS LONG AS WE TRUST IN YOUR WISDOM AND IN YOUR HOLY WILL.

LORD, WE PRAY ALL THESE THINGS IN CHRIST'S HOLY NAME.

AMEN.

>> AMEN.

>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC, FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

>> WELL, LADIES AND GENTLEMEN, IT IS INDEED MY PRIVILEGE TODAY TO WELCOME YOU TO THE STATE CAPITOL.

TODAY'S AN EXTREMELY IMPORTANT DAY AS WE PREPARE FOR THE 98th LEGISLATIVE SESSION.

BEFORE THE GOVERNOR GIVES HER ADDRESS, I WILL REMIND YOU OF THE PURPOSE FOR WHICH WE ARE GATHERED HERE TODAY.

IN ACCORDANCE WITH THE SOUTH DAKOTA CONSTITUTION, THE GOVERNOR SHALL PROPOSE TO YOU A BUDGET IN WHICH THE EXPENDITURES AND APPROPRIATIONS MAY NOT EXCEED ANTICIPATED REVENUE AND EXISTING FUNDS AVAILABLE FOR EXPENDITURE OR APPROPRIATION.

THE APPROPRIATIONS BY YOU, THE LEGISLATURE, MAY NOT EXCEED ANTICIPATED REVENUE OR EXISTING FUNDS AVAILABLE FOR EXPENDITURE OR APPROPRIATIONS CORDINGLY.

THE GOVERNOR, THROUGH THE BUREAU OF FINANCE AND MANAGEMENT, SHALL PREPARE AND SUBMIT TO YOU A BUDGET WITH COPIES FOR YOU TODAY OR NO LATER THAN THE FIRST TUESDAY AFTER THE SECOND -- THE FIRST TUESDAY AFTER THE FIRST MONDAY IN DECEMBER.

SERGEANT AT ARMS, WOULD YOU PLEASE ANNOUNCE THE ARRIVAL OF THE GOVERNOR?

>> WITH ALL OF US IN THIS BEAUTIFUL CHAMBER, PLEASE WELCOME THE HONORABLE GOVERNOR KRISTI NOEM.

[ Applause ] >> THANK YOU.

THANK YOU.

THANK YOU.

GO AHEAD.

THANK YOU.

THANK YOU.

WELL, GOOD AFTERNOON.

LIEUTENANT GOVERNOR RHODEN, Mr. SPEAKER, MEMBERS OF THE HOUSE AND THE SENATE AND MY FELLOW SOUTH DAKOTANS, TODAY BEFORE I BEGIN, I WOULD LIKE TO THANK SOME FOLKS THAT PUT A LOT OF WORK INTO THIS BUDGET PROPOSAL TODAY.

BEHIND ME, UP ABOVE ME, IS MY BUREAU OF FINANCE IN MANAGEMENT.

THE FOLKS AT THE DEPARTMENT OF REVENUE.

AND THEY ARE THE ONES THAT HAVE SPENT AN INCREDIBLE AMOUNT OF TIME OVER THE LAST YEAR PUTTING TOGETHER THESE NUMBERS, PREPARING FOR TODAY, MAKING SURE THAT OUR FIGURES AND OUR NUMBERS WERE ACCURATE AND GIVING US THE RIGHT ECONOMIC PROJECTIONS FOR THE FUTURE SO THAT WE CAN PLAN AND MAKE INVESTMENTS WISELY.

I AM SO GRATEFUL FOR WHAT THEY DO FOR THE STATE OF SOUTH DAKOTA.

THEY PERFORM THEIR WORK WITH EXCELLENCE.

AND WOULD YOU ALL PLEASE STAND AND HELP ME THANK THEM FOR ALL THE WORK THAT THEY DO TO HELP US HERE IN THE STATE OF SOUTH DAKOTA?

[ Applause ] THANK YOU.

JIM TERWILLIGER LEADS THAT BUREAU.

HE'S CALLED A COMMISSIONER.

I CALL HIM TWIGS, SO THAT'S HIS NICKNAME, EVERYBODY.

IF YOU HAVE ANY QUESTIONS ABOUT DATA AND INFORMATION THAT YOU GET, YOU CAN SURE ASK TWIGS ANY TIME.

I ALSO WANT TO THANK MY FAMILY THAT'S HERE TODAY.

BRIAN IS HERE, THE FIRST FIRST GENTLEMAN, BUT ALSO HE HAS BROUGHT WITH HIM HIS PARENTS, AL AND SHARON NOEM, AND I HAVE THE MOST WONDERFUL, PERFECT FATHER-IN-LAW AND MOTHER-IN-LAW.

SO IF YOU WOULD THANK THEM SO MUCH FOR SUPPORTING ME AND FOR BEING HERE TODAY, THEY'RE RIGHT OVER HERE AT THE BACK OF THE CHAMBER, I WOULD APPRECIATE IT.

[ Applause ] THANK YOU.

NOW TODAY I'M GOING PRESENT MY BUDGET TO YOU FOR CONSIDERATION.

AND THIS BUDGET WILL COVER THE REMAINDER OF FISCAL YEAR 2023 AND ALL OF FISCAL YEAR 2024.

BEFORE I DISCUSS OUR FUTURE, I WANT TO REMIND YOU OF WHERE WE HAVE BEEN.

AND HOW WE STAND FINANCIALLY TODAY.

THE LAST FOUR YEARS, WE HAVE MADE SOUTH DAKOTA THE STRONGEST STATE IN AMERICA.

WE LEAD THE NATION IN ALMOST EVERY SINGLE ECONOMIC METRIC.

OUR PERSONAL INCOME GROWTH IS NUMBER ONE IN THE COUNTRY.

AND OVER THE LAST YEAR, BOTH OUR NEW HOUSING DEVELOPMENT AND OUR NEW BUSINESS APPLICATIONS HAVE BEEN THE BEST IN AMERICA.

OUR KIDS LEAD THE NATION IN EDUCATIONAL OUTCOMES, AND WE ARE BREAKING TOURISM RECORDS YEAR AFTER YEAR.

[ Applause ] THIS PAST YEAR, OUR UNEMPLOYMENT RATE HAS BEEN THE LOWEST THAT IT HAS EVER BEEN IN HISTORY.

TODAY WE HAVE LESS THAN 700 PEOPLE IN THE STATE OF SOUTH DAKOTA THAT ARE ON UNEMPLOYMENT.

[ Applause ] OUR POPULATION IS EXPANDING AT TEN TIMES THE NATIONAL AVERAGE, AND I WILL CONTINUE TO RECRUIT FREEDOM-LOVING AMERICANS TO COME JOIN US HERE IN SOUTH DAKOTA.

PARTICULARLY THOSE THAT CAN FILL OUR HIGH-DEMAND JOB POSITIONS THAT WE NEED.

MY BUDGET TODAY WILL HELP ADDRESS A LOT OF THOSE WORKFORCE CHALLENGES THAT WE HAVE AS WELL.

NOW, SOUTH DAKOTA'S GOVERNMENT IS SMALL, BUT IT'S EFFECTIVE.

WHILE WE'VE GROWN, WE'VE ALWAYS BEEN FISCALLY RESPONSIBLE.

WE'VE HAD THE BEST-FUNDED PENSION PLAN IN THE COUNTRY.

WE CONTINUE TO HAVE A TRIPLE A CREDIT RATING AND WE BALANCE OUR BUDGET.

[ Applause ] I RECOGNIZE THAT TAXPAYER DOLLARS ARE NOT OUR OWN, THAT THEY BELONG TO THE PEOPLE OF SOUTH DAKOTA.

WE ALL MUST REMEMBER THROUGHOUT OUR BUDGET DISCUSSIONS THAT THIS MONEY BELONGS TO THE HARDWORKING PEOPLE OF SOUTH DAKOTA.

IN SOUTH DAKOTA, OUR STATE MOTTO IS, UNDER GOD, THE PEOPLE RULE.

AND THOSE AREN'T JUST WORDS THAT WE SAY.

WE BELIEVE THEM.

WE TAKE ACTION ON THEM.

AND WE MUST, FOR THE FUTURE SECURITY OF OUR GREAT STATE.

FRANKLY, THE IRRESPONSIBILITY OF THE FEDERAL GOVERNMENT DEMANDS IT.

NO NATION IN HISTORY HAS EVER SURVIVED THE TAX BURDEN AND THE SPENDING SPREE THAT THIS WHITE HOUSE IS PROPOSING.

THEY HAVEN'T BALANCED THE FEDERAL BUDGET IN DECADES.

CONGRESS CONTINUES TO RAISE THE DEBT LIMIT WITH NO PLAN FOR SPENDING, AND LEADERS IN WASHINGTON, D.C., PRINT MONEY ONLY TO TURN IT INTO DEBT AND GO INTO DEBT WITH FOREIGN ENTITIES THAT ARE OUR ENEMIES.

THEN THEY DECLARE THAT THEY MUST REACH INTO THE POCKETS OF EVERYDAY AMERICANS AND GRAB MORE OF THEIR EARNINGS TO KEEP US SAFE, ENSURE LAW AND ORDER, AND TO SUBSIDIZE PROGRAMS DESIGNED TO ENSLAVE FAMILIES TO GOVERNMENT.

WE HAVE SEEN THE INCREDIBLE POWER GRAB OF THESE LEADERS THE PAST FEW YEARS.

THEY HAVE USED UNCONSTITUTIONAL ACTIONS AND THE ENTICEMENT OF MORE MONEY TO TAKE UNPRECEDENTED ACTION TO MAKE PEOPLE MORE DEPENDENT, TO MAKE PEOPLE WEAK AND APATHETIC.

IT IS IRRESPONSIBLE AND IT IS WRONG.

THAT IS NOT HOW WE RUN OUR STATE.

WE MAKE THE HARD DECISIONS.

WE RECOGNIZE THAT A LIMITED GOVERNMENT RESPECTS PEOPLE.

AND THEIR DOLLARS.

AND THAT'S THE BEST WAY TO PRESERVE THE AMERICAN DREAM FOR OUR CHILDREN AND FOR OUR GRANDCHILDREN.

WE DON'T MAKE DECISIONS THAT ONLY BENEFIT US TODAY.

WE LOOK FAR INTO THE FUTURE AND WE REALIZE THE RAMIFICATIONS OF OUR DECISIONS AND MAKE THE HARD CHOICES SO THAT FUTURE SOUTH DAKOTANS HAVE THE CHANCE TO GROW UP IN A PLACE OF OPPORTUNITY AND FREEDOM.

NOW, THE NATION IS WATCHING HOW THIS BODY MAKES DECISIONS.

THAT MAY NOT HAVE BEEN TRUE FIVE OR TEN YEARS AGO.

WHETHER YOU LIKE IT OR NOT, PEOPLE NOW KNOW WHERE SOUTH DAKOTA IS.

THEY SEE THIS STATE AS A BEACON OF HOPE, A PLACE OF LIBERTY.

HOW YOU DECIDE TO GOVERN, HOW YOU BUDGET AND YOU COMMUNICATE TO OUR PEOPLE WILL BE WATCHED, IT WILL BE EVALUATED, AND IT WILL BE JUDGED.

HAS YOUR JOB GOTTEN EASIER WITH MORE REVENUE?

I WOULD SAY NO.

IT IS MUCH HARDER.

WE MUST BE DISCIPLINED TO PROTECT OUR PEOPLE FROM AN EXPANSION OF GOVERNMENT IN OUR LIVES THROUGH NEW PROGRAMS AND SUBSIDIES.

LET'S NOT FORGET THAT GOVERNMENT SHOULD BE BEHOLDEN TO THE PEOPLE AND NOT THE OTHER WAY AROUND.

[ Applause ] OUR FOUNDING FATHERS DID NOT BELIEVE IN A CENTRALIZED GOVERNMENT.

THEY BELIEVED IN THE RIGHTS OF INDIVIDUALS AND THEIR ABILITY TO GOVERN THEMSELVES.

NOW, OUR STATE IS BRINGING IN INCREDIBLE REVENUE.

PEOPLE ARE MAKING MORE MONEY, OUR BUSINESSES HAVE EXPANDED, WE HAVE RECRUITED NEW INDUSTRIES, AND THAT'S BECAUSE OF THE WAY THAT WE HAVE FOLLOWED OUR STATE'S MOTTO, UNDER GOD, THE PEOPLE RULE.

WE HAVE PERMANENTLY GROWN OUR STATE'S ECONOMY.

WE'VE LIVED THROUGH UNPRECEDENTED CHALLENGES SINCE I'VE BEEN YOUR GOVERNOR.

WE'VE HAD A CYCLONE, A PANDEMIC, A DEAR RAFE I DON'T, MAKE NO MISTAKE, THIS ECONOMIC GROWTH, IT'S AN UNPRECEDENTED EVENT AS WELL.

WE MUST BE LEADERS WHO PROTECT SOUTH DAKOTA'S WAY OF LIFE AS WE LOOK INTO THE FUTURE.

NOW, ON NOVEMBER 8th, THE PEOPLE OF THIS GREAT STATE GAVE US A MANDATE.

THEY TURNED OUT IN RECORD-BREAKING NUMBERS TO MAKE SURE THAT WE IN THIS BUILDING HEARD FROM THEM LOUD AND CLEAR.

THEY DEMAND LOW TAXES, LESS REGULATION, AND MORE FREEDOM.

THEY WERE ALSO VERY CLEAR THAT THEY WANT US TO TAKE CARE OF PEOPLE AND TO CREATE OPPORTUNITIES TO SUCCEED.

AS GOVERNOR, I WILL CONTINUE TO LISTEN TO OUR PEOPLE.

I WILL GUIDE OUR DECISIONS AND OUR DISCUSSION BASED ON MY CONSTITUTIONAL AUTHORITY.

WE HAVE $423 MILLION IN RESERVES.

HISTORICALLY OUR GOAL IS TO KEEP 10% OF THESE FUNDS IN RESERVE.

SINCE I'VE BEEN GOVERNOR, WE HAVE ALMOST DOUBLED THAT NUMBER.

WE ENDED LAST YEAR WITH A RECORD-BREAKING BUDGET SURPLUS OF $115 1.5 MILLION.

$115.5 MILLION.

THAT HISTORIC SURPLUS IN FISCAL YEAR 2022 WAS LARGELY THANKS TO SALES AND USE TAX RECEIPTS GROWING BY OVER 12% OVER THE PRIOR FISCAL YEAR.

SO IN FISCAL YEAR 2023, SALES AND USE TAXES HAVE GROWN BY ANOTHER 14.1%.

EARLY INDICATIONS FOR NOVEMBER HAVE US BEATING REVENUE PROJECTIONS BY ANOTHER 58.8 MILLION.

PUTTING US UP $135.3 MILLION FISCAL YEAR TO DATE.

SALES TAX ALONE IS RUNNING 81.8 MILLION AHEAD OF THE ESTIMATES THAT YOU ADOPTED.

IN SOUTH DAKOTA, WE KNOW THAT WE HAVE TO PREPARE FOR THE FUTURE.

AND LET ME BE CLEAR.

WE HAVE DONE EVERYTHING WE CAN TO HELP OUR STATE BE SUCCESSFUL.

HOWEVER, ECONOMISTS INDICATE THAT THERE WILL BE CHALLENGES AHEAD.

BAD POLICIES ARE COMING OUT OF WASHINGTON, D.C., THAT WILL UNLEASH A RECESSION ON THIS COUNTRY.

WE WILL BE IMPACTED.

EARLIER THIS YEAR, OUR COUNTRY HAD TWO CONSECUTIVE QUARTERS OF NEGATIVE ECONOMIC GROWTH.

THE FEDERAL RESERVE'S INCREASE OF INTEREST RATES IS ANOTHER INDICATOR THAT A RECESSION IS ON THE HORIZON.

BUT SOUTH DAKOTA'S GROWTH IN TAX REVENUES CONTINUE.

BECAUSE OUR STATE'S ECONOMY IS IN A FAR BETTER POSITION THAN THE NATION AS A WHOLE.

ECONOMISTS EXPECT THAT THE UPCOMING RECESSION WILL BE PRIMARILY INVESTMENT LED.

THEY EXPECT THAT OUR UNEMPLOYMENT RATE WILL REMAIN LOW AND THEY DON'T EXPECT THAT CONSUMER SPENDING WILL BE HEAVILY IMPACTED.

THOSE FACTORS AFFECT HOW WE'RE GOING TO BUDGET HERE IN OUR STATE.

IN MY BUDGET TODAY, I'M KEEPING OUR REVENUE PROJECTIONS FOR THE FUTURE VERY CONSERVATIVE.

THE PEOPLE OF SOUTH DAKOTA DESERVE SAFE PLANNING THAT PROTECTS THEM FROM FUTURE TAX INCREASES OR DRASTIC CUTS TO STATE SERVICES.

WE EXPECT THAT THERE WILL BE $310 MILLION IN ONGOING REVENUE AVAILABLE FOR FISCAL YEAR 2024.

WE'RE ANTICIPATING THAT $216 MILLION IN ONE-TIME REVENUE WILL BE AVAILABLE FOR THE UPCOMING FISCAL YEAR AS WELL.

THE BUDGET THAT I AM PROPOSING TO YOU TODAY, IT INVESTS EVERY SINGLE ONE OF THOSE REVENUES WISELY.

ELIMINATING THE SALES TAX ON GROCERIES IS THE BIGGEST WAY THAT -- IN MY BUDGET THAT WE CAN HELP SOUTH DAKOTANS TACKLE THE CHALLENGE OF JOE BIDEN'S INFLATION AND PROTECT THEIR HARD-EARNED MONEY.

UNFORTUNATELY, FOOD COSTS HAVE RISEN BY FAR TOO MUCH.

FAMILIES ARE STRUGGLING TO MAKE ENDS MEET AS A RESULT OF THAT.

YOU'VE HEARD ME TALK ABOUT -- BEFORE ABOUT THE RAPID INCREASES WE'VE SEEN IN THE COST OF MILK, GROUND BEEF AND EGGS, OTHER GROCERIES.

EGGS THEMSELVES HAVE INCREASED OVER 140% OF WHAT THEY WERE A YEAR AGO.

EVEN SOUTH DAKOTA IS HAVING OUR BEST PERSONAL INCOME GROWTH, STILL, THEN, EVEN OUR FAMILY'S BUDGETS ARE NOT KEEPING UP.

WE CAN GROW THOSE INCOMES OF EVERY SINGLE FAMILY EVEN MORE BY LETTING THEM KEEP MORE HARD-EARNED DOLLARS IN THEIR POCKETS.

NOW, GAS PRICES CONTINUE TO INCREASE BECAUSE OF PRESIDENT BIDEN'S ENERGY POLICIES AND NEW REGULATIONS, NEW TAXES, A LACK OF UTILIZATION OF AMERICAN ENERGY SOURCES, A DWINDLING RESERVE, THEY ALL INDICATE TO US THAT THAT TREND WILL CONTINUE.

SENIOR CITIZENS, WORKING PARENTS, SINGLE MOMS, EVERY SINGLE SOUTH DAKOTAN RIGHT NOW IS PAYING MORE FOR THEIR FOOD, FOR THEIR GAS, TO HEAT THEIR HOME, THEIR FAMILY FINANCES ARE STRUGGLING UNDER THE STRAIN AND OVER THE LAST TEN YEARS, AMERICANS TYPICALLY ON AVERAGE WOULD SAVE, PUT INTO THEIR SAVINGS ACCOUNT 7 TO 8% OF THEIR MONTHLY INCOME, ON AVERAGE.

DURING THE PANDEMIC, THEIR SAVINGS WAS 20 TO 30% PER MONTH THAT THEY PUT IN TO PREPARE FOR THE FUTURE.

RIGHT NOW THEY'RE SAVING LESS THAN 4% BECAUSE ALMOST EVERY SINGLE DOLLAR THAT THEY MAKE IS GOING TO PAY THEIR MONTHLY BILLS, TO BUY FOOD, AND TO PAY THEIR GAS COSTS AND THEIR BILLS.

THEY ARE NO LONGER SAVING MONEY FOR COLLEGE, TO BUY A NEW HOUSE, OR A NEW CAR.

THEY'RE JUST BARELY GETTING BY.

WE NEED TO GIVE THEM RELIEF, AND WE CAN DO SO BY GIVING THEM $100 MILLION TAX CUT BY ELIMINATING THE SALES TAX ON GROCERIES.

WE HAVE $310 MILLION IN PERMANENT REVENUE GROWTH.

WE STILL, EVEN AFTER THIS TAX CUT, WILL HAVE $208 MILLION THAT WILL BE AVAILABLE TO US TO MEET THE NEEDS THAT THE STATE GOVERNMENT IS RESPONSIBLE FOR.

WE HAVE BEEN EXCEEDING ESTIMATES BY ABOUT $25 MILLION PER MONTH.

THE PEOPLE OF SOUTH DAKOTA OVERWHELMINGLY WANT THIS TAX CUT.

AND THEY KNOW THAT WE CAN AFFORD IT.

NOW, REMEMBER, OUR REVENUES ARE STRONG BECAUSE WE'VE GROWN OUR ECONOMY.

IT HAS THE STRONGEST IN THE NATION RESULTS THAT WE HAVE BEEN ABLE TO SEE.

PEOPLE HAVE MOVED THEIR FAMILIES, THEY HAVE MOVED THEIR JOBS, AND THEY'VE MOVED THEIR BUSINESSES TO SOUTH DAKOTA.

OUR NEW HOUSING DEVELOPMENTS ARE HERE TO STAY.

NEW INDUSTRIES ARE THRIVING.

THE JOBS OF THE FUTURE ARE RIGHT HERE IN SOUTH DAKOTA.

AND ONCE AGAIN, WE HAVE THE FASTEST-GROWING INCOMES IN AMERICA.

THIS GROWTH IS SUSTAINABLE.

IT IS PERMANENT.

AND THERE WON'T BE A BETTER OPPORTUNITY IN THE FUTURE TO DO THIS TAX CUT.

MY TEAM AND I ARE FULLY CONFIDENT THAT THIS IS THE RIGHT TAX CUT AT THE RIGHT TIME.

AND I WANT YOUR HELP TO GET IT DONE.

NOW, MEDICAID -- EXPANSION [ Applause ] MEDICAID EXPANSION PASSED ON THE BALLOT, AND, THEREFORE, IT WILL BE IMPLEMENTED.

IN EVERY OTHER STATE WHERE MEDICAID EXPANSION WAS PASSED, THE COSTS EXCEEDED THEIR EXPECTATIONS.

THAT'S WHY THIS PAST YEAR WE DID OUR HOMEWORK, WE RESEARCHED THOSE STATES, WE CONSULTED WITH EXPERTS TO PUT TOGETHER THIS BUDGET PLAN TO ENSURE THAT THE LAW WOULD BE FOLLOWED.

THE FEDERAL GOVERNMENT INCENTIVIZES STATES TO IMPLEMENT MEDICAID BY SUBSIDIZING COSTS THE FIRST FEW YEARS.

AFTER THAT, THE BURDEN IS GOING TO FALL ON THE STATE.

THE FIRST YEAR THE COST FOR MEDICAID EXPANSION WILL BE $66 MILLION.

THE STATE'S RESPONSIBILITY WILL BE $13 MILLION BECAUSE THE REST WILL BE COVERED BY THE FEDERAL GOVERNMENT.

IN THE SECOND YEAR, THE COST WILL BE $70 MILLION.

AND THE STATE WILL PAY $16 MILLION OF THAT.

AFTER THAT, THE RESPONSIBILITY FOR THE PROGRAM FALLS TO US.

WE EXPECT THAT THE COST OF MEDICAID EXPANSION WILL BE $66 MILLION IN YEAR ONE.

IN YEAR TWO, IT WILL BE JUST UNDER $70 MILLION.

AND IT WILL RISE TO A COST OF MORE THAN $80 MILLION BY YEAR FIVE.

NOW, MAKE NO MISTAKE, THE EXPANSION OF MEDICAID, AS IT WAS PASSED ON THE NOVEMBER BALLOT IN SOUTH DAKOTA, IS AN EXPANSION OF A GOVERNMENT PROGRAM.

IT WILL GIVE FREE HEALTHCARE TO A POPULATION IN OUR STATE THAT THE MAJORITY OF THEM ARE ABLE-BODIED, SINGLE MALES.

OUR GOAL IN POLICY SHOULD ALWAYS BE TO GIVE PEOPLE THE OPPORTUNITY TO HAVE MORE FREEDOM IN HEALTHCARE -- AND HEALTHCARE OPTIONS, NOT GOVERNMENT-RUN PROGRAMS.

LET'S KEEP THAT IN MIND IN THE COMING DAYS AND GIVE PEOPLE THE DIGNITY AND THE RESPONSIVE AND RESPONSIBLE HEALTHCARE THAT THEY CAN CONTROL, NOT THE GOVERNMENT.

[ Applause ] THERE ARE ONGOING BUDGET INCREASES THAT WE WILL ADDRESS EVERY SINGLE YEAR IN THE LEGISLATURE.

STATE STATUTE REQUIRES THAT WE ADDRESS STATE AID TO EDUCATION, THAT WE ALSO TAKE CARE OF STATE EMPLOYEES AND HEALTHCARE PROVIDERS.

THIS YEAR I AM RECOMMENDING A 5% INCREASE FOR ALL THREE.

WHICH IS ALMOST DOUBLE WHAT IS REQUIRED BY STATE STATUTE.

A FEW YEARS BACK, THE LEGISLATURE, THEY CREATED A PROCESS TO ESTABLISH A RATE-SETTING METHODOLOGY FOR HEALTH AND HUMAN SERVICE PROVIDERS.

THIS WOULD AFFECT THOSE SERVICES THAT ARE DELIVERED BY COMMUNITY-BASED PROVIDERS.

THIS METHODOLOGY, IT REFLECTS A REASONABLE AMOUNT THAT WE SHOULD PAY FOR SERVICES THAT ARE PROVIDED.

NOW, UNFORTUNATELY, AS THE COST OF LIVING HAS INCREASED, REIMBURSEMENT RATES FOR MANY OF THESE SERVICES HAVE STRUGGLED TO KEEP PACE.

TODAY I AM RECOMMENDING THAT WE INVEST $22 MILLION IN TARGETED INCREASES TO REIMBURSE AT LEAST 90% OF THE REASONABLE RATE TO ALL OF THESE PROVIDERS FOR THEIR SERVICES.

NOW, SOME HAVE FALLEN REALLY FAR BEHIND.

TO GET TO 90%, WE WILL NEED TO GIVE 21% INCREASES TO OUR NURSING HOMES.

A 17% INCREASE TO COMMUNITY SUPPORT PROVIDERS FOR SOUTH DAKOTA'S -- SOUTH DAKOTANS WITH DEVELOPMENTAL DISABILITIES.

AND A 26% INCREASE FOR PSYCHIATRIC RESIDENTIAL TREATMENT FACILITIES.

NOW, THESE PROVIDERS ARE CRITICAL TO OUR STATE, AND THEY ENSURE THAT WE CAN TAKE CARE OF SOME OF THOSE AMONG US THAT ARE VULNERABLE, THAT NEED THE SERVICES AND DEPEND ON THE SERVICES.

[ Applause ] WE MUST ADDRESS THE FACT THAT WE ARE HAVING A VERY DIFFICULT TIME ALSO RECRUITING STATE EMPLOYEES.

TODAY THEY'RE FALLING BEHIND INDUSTRY, AND WE OFTEN TRAIN PEOPLE FOR THEIR POSITIONS ONLY TO HAVE THEM LEAVE FOR JOBS ELSEWHERE.

MY BUDGET HAS $11 MILLION IN TARGETED PAY INCREASES FOR SPECIFIC JOB AREAS AND $11 MILLION IN ADDED BENEFITS TO ENSURE THAT STATE GOVERNMENT HAS THE WORKFORCE THAT IT NEEDS TO CARRY OUT THE CRITICAL SERVICES THAT ARE NECESSARY FOR US TO FULFILL THOSE RESPONSIBILITIES.

I WANT TO REMIND SOMEONE ELSE -- EVERYONE HERE OF SOMETHING ELSE.

IT'S ONE THING THAT THE MEDIA FORGETS TO COVER EVERY SINGLE YEAR.

THE GOVERNOR AND THE LEGISLATURE DO NOT DECIDE WHERE ALL OF THESE DOLLARS GO THAT ARE IN THESE 5% INCREASES THAT GO TO EDUCATION, HEALTHCARE PROVIDERS.

WE DON'T DECIDE HOW THOSE ARE SPENT.

I WOULD ENCOURAGE ALL OF YOU AND ALL OF THEM TO TALK ABOUT PUTTING AS MUCH OF THESE DOLLARS INTO PAY INCREASES AS THEY POSSIBLY CAN.

SOUTH DAKOTA HAS THE FASTEST-GROWING INCOMES IN THE COUNTRY.

BUT IF YOU DON'T CONTINUE TO INVEST IN YOUR WORKERS, IN YOUR PROVIDERS OR IN YOUR TEACHERS, THEY'RE GOING TO FIND GOOD-PAYING JOBS SOMEWHERE ELSE.

AND WE NEED THEM.

WE NEED THEM HERE IN THIS STATE.

[ Applause ] BECAUSE OF PRESIDENT BIDEN'S INFLATION, BUILDING PROJECTS THAT HAVE ALREADY RECEIVED YOUR LEGISLATIVE APPROVAL ARE COMING IN FAR OVERBUDGET.

I'M RECOMMENDING $25.6 MILLION IN ONE-TIME FUNDING TO FINISH THESE CRITICAL PROJECTS THAT WE'VE ALREADY STARTED.

THIS REQUEST INCLUDES A $13 MILLION INCREASE FOR THE STATE PUBLIC HEALTH LAB, A $7 MILLION INCREASE TO THE BOARD OF REGENTS PROJECTS THAT WE COMPLETED AND APPROVED LAST YEAR, AND $6 MILLION TO THE DEC, DAKOTA EVENTS COMPLEX AT THE STATE FAIR.

ALL OF THESE PROJECTS HAVE RECEIVED YOUR PRIOR LEGISLATIVE APPROVAL AND THEY NEED TO BE COMPLETED.

[ Applause ] MARGARET THATCHER ONCE FAMOUSLY SAID, THAT THERE IS NO SUCH THING AS SOCIETY.

THERE ARE INDIVIDUAL MEN AND WOMEN AND THERE ARE FAMILIES.

WELL, AMEN, SISTER.

WE HAVE TALKED HERE ABOUT BUILDING STRONGER FAMILIES SINCE I'VE BEEN YOUR GOVERNOR.

WHEN I BECAME YOUR GOVERNOR, I IMPLEMENTED PAID FAMILY LEAVE FOR STATE EMPLOYEES.

WE TOLD STATE EMPLOYEES THAT IF THEY WERE BRINGING A NEW CHILD INTO THEIR HOME, WHETHER BY BIRTH OR BY ADOPTION, THAT THE STATE WOULD COVER 60% OF THEIR PAY VIA PAID FAMILY LEAVE.

TODAY I'M ANNOUNCING THAT WE WILL BE EXTENDING THAT BENEFIT TO COVER 100% OF PAY FOR STATE EMPLOYEES.

THAT WILL COST US $3 MILLION IN ONGOING FUNDS.

ONE OF THE BIGGEST CHALLENGES FACING OUR STATE OVERALL IS WORKFORCE.

TOO OFTEN NEW PARENTS HAVE TO LEAVE THE WORKFORCE WHEN A NEW CHILD JOINS THEIR FAMILY.

THOSE EARLY DAYS ARE SO CRUCIAL TO GIVE MOMS AND DADS THE OPPORTUNITY TO BOND WITH THE NEW CHILD.

BY EXTENDING PAID FAMILY LEAVE OPPORTUNITIES, WE CAN HELP THOSE WORKERS AND WE CAN HELP FAMILIES.

TO DO THIS, I'M INCLUDING A $20 MILLION ONE-TIME INCENTIVE SPREAD OUT OVER FOUR YEARS TO INCENTIVIZE PRIVATE BUSINESSES TO BUY IN TO A NEW PAID FAMILY LEAVE OPPORTUNITY.

[ Applause ] WE WILL ALSO BE SUPPORTING MOTHERS AND FAMILIES THROUGH FUNDING FOR ADOPTION, FOR PREGNANCY AND POST-PARTUM CARE FOR MEDICAID PATIENTS, WE'LL ALSO BE FUNDING SCHOLARSHIPS FOR FOSTER CHILDREN, AND YOU'LL HEAR MORE DETAILS ABOUT EACH OF THESE PROPOSALS IN MY STATE OF THE STATE ADDRESS IN JANUARY.

BUT IT ISN'T JUST BIRTH AND ADOPTIONS WHERE OUR FAMILIES NEED OUR HELP.

WE CAN STRENGTHEN FAMILIES BY CONTINUING TO HELP THEM THROUGH SOME TOUGH CIRCUMSTANCES TOO.

OVER THE LAST COUPLE OF YEARS, YOU HAVE HELPED INVEST IN REGIONAL BEHAVIORAL CRISIS CENTERS.

TOO OFTEN WHEN SOMEONE IS EXPERIENCING A MENTAL HEALTH CRISIS, THEY JUST END UP IN JAIL OR IN AN EMERGENCY ROOM.

THAT ISN'T HOW WE GET PEOPLE THE HELP THAT THEY NEED.

IT ISN'T A RESPONSIBLE USE OF TAXPAYER DOLLARS.

THESE FACILITIES WILL HELP THESE INDIVIDUALS GET BETTER CARE AS SOON AS POSSIBLE AND MUCH CLOSER TO HOME.

WE'VE BUILT THESE FACILITIES IN COMMUNITIES ACROSS OUR STATE.

YOU REMEMBER THAT TWO YEARS AGO WE FUNDED FACILITIES IN PENNINGTON COUNTY AND IN WATERTOWN.

LAST YEAR YOU PROVIDED ANOTHER $15 MILLION TO EXPAND THESE REGIONAL FACILITIES STATEWIDE.

WELL, YOU BUILT THE BUILDINGS AND NOW WE NEED TO FUND THE OPERATIONS.

MY BUDGET PROPOSES $5.6 MILLION IN ONGOING REVENUE TO THESE REGIONAL FACILITIES TO GET INDIVIDUALS THE HELP THAT THEY NEED SOONER THAN THEY ARE TODAY.

IT WILL NOT ONLY BE BETTER CARE, IT WILL ALSO BE MUCH MORE EFFICIENT AND IT WILL BE MUCH MORE COST EFFECTIVE THAN WHAT WE'RE DOING.

[ Applause ] THE FINAL WAY THAT THIS BUDGET IS GOING TO CONTINUE TO BUILD ON SOUTH DAKOTA STRENGTHS IS BY INVESTING IN OUR PUBLIC SAFETY AND OUR INFRASTRUCTURE.

THESE ARE THE CORE FUNCTIONS OF STATE GOVERNMENT.

OVER THE LAST FOUR YEARS, WE HAVE MADE TREMENDOUS PROGRESS AND IMPROVEMENT IN OUR INFRASTRUCTURE.

WE'VE REPAIRED DAMS, ROADS, BRIDGES, WE BUILT RAILROADS TO HELP SUPPORT SOUTH DAKOTA'S INCREDIBLE GROWTH.

MY BUDGET CONTINUES TO GUARANTEE OUR STATE'S PUBLIC SAFETY AS WELL.

SOUTH DAKOTA HAS SET ITSELF APART AS A PLACE THAT RESPECTS LAW ENFORCEMENT.

WE RESPECT OUR MILITARY.

WE REALIZE THAT OUR PEOPLE CAN'T ENJOY THE STATE'S TREMENDOUS FREEDOM IF THEY'RE NOT SAFE IN THEIR HOMES AND IN OUR STREETS.

LAST YEAR WE STARTED THE HARD WORK OF ADDRESSING THE CHALLENGES WITHIN THE DEPARTMENT OF CORRECTIONS, AND IN OUR PRISON SYSTEM.

WE PUT $86 MILLION INTO AN INCARCERATION CONSTRUCTION FUND, AND WE FUNDED $3.8 MILLION FOR LAND AND DESIGN COSTS FOR A NEW WOMEN'S MINIMUM SECURITY PRISON OUT IN RAPID CITY.

THE NEW INCARCERATION TASK FORCE HAS AGREED WITH ALL OF THOSE RECOMMENDATIONS.

THE ENGINEERING AND DESIGN PROCESS CAME BACK WITH DOLLAR FIGURE ESTIMATES.

AND UPDATED POPULATION PROJECTIONS INDICATE THAT WE'RE GOING TO NEED 300 BEDS AT THIS NEW WOMEN'S FACILITY.

THE COST ESTIMATE FOR CONSTRUCTION IS $200,000 PER BED, OR $60 MILLION TOTAL.

NOW, WE CAN COVER THIS COST WITH THE MONEY THAT YOU SET ASIDE IN THE INCARCERATION CONSTRUCTION FUND.

MY BUDGET REFLECTS THAT.

BUT WE ALSO NEED TO ADDRESS THE STATE PENITENTIARY.

WE KNOW IT'S OUTDATED.

WE KNOW IT'S NOT COMPLIANT WITH A.D.A.

REQUIREMENTS.

AND IT'S OVERCROWDED.

IT'S BEEN AN ISSUE NOT JUST THIS YEAR BUT LONG BEFORE I WAS YOUR GOVERNOR.

I'M RECOMMENDING THAT WE TAKE THE SAME MULTIYEAR APPROACH THAT YOU'VE TAKEN WITH THE WOMEN'S PRISON IN RAPID CITY.

MY BUDGET INCLUDES $52 MILLION IN FUNDING TO PURCHASE LAND AND TO CONDUCT ENGINEERING AND DESIGN FOR A NEW FACILITY.

$27 MILLION OF THAT WILL COME FROM THE REMAINING DOLLARS THAT ARE IN THE INCARCERATION CONSTRUCTION FUND.

AND $25 MILLION WILL BE FROM ONE-TIME GENERAL FUNDS.

I'M RECOMMENDING THAT WE TRANSFER EXCESS FUNDS THAT ARE ABOVE AND BEYOND THE TRADITIONAL 10% IN RESERVES AND ADDRESS THIS SITUATION.

YOU REMEMBER WE TALKED ABOUT THAT WHEN WE PUT EXCESS DOLLARS AT THE 12% AND 14% LAST YEAR THAT WE NEEDED TO DO SO TO PREPARE FOR THIS TYPE OF A BUILD.

WE HAVE TO ALWAYS -- WE HAVE ALWAYS BEEN ABLE TO DO WHAT IS OUR RESPONSIBILITY HERE IN THE STATE OF SOUTH DAKOTA, BUT WE ALSO HAVE A RESPONSIBILITY TO NOT JUST BUILD THE PRISONS THAT WE NEED TO KEEP PEOPLE SAFE AND TO DO AND CARE FOR THEM WELL WHILE THEY'RE IN OUR RESPONSIBILITY, WE ALSO NEED AND HAVE A RESPONSIBILITY TO SECURE PEOPLE'S PERSONAL INFORMATION.

WE CAN'T DO THAT WITH OUR CURRENT OPERATIONAL SYSTEM THAT WE'RE USING IN STATE GOVERNMENT TODAY.

OUR STATE'S ACCOUNTING AND OUR SOFTWARE SYSTEM IS 35 YEARS OLD.

IT'S VULNERABLE TO HACKERS, AND IT IS IN DANGER OF CRASHING IN THE FUTURE.

IMAGINE USING THE SAME COMPUTER THAT YOU USED 35 YEARS AGO.

MANY OF YOU WOULDN'T EVEN DREAM OF IT.

YET, OUR STATE IS STILL DOING THAT.

ALSO, WE HAVE NO BACKUP FOR THIS OUTDATED SYSTEM.

WHICH IS A MAJOR SECURITY SYSTEM WHEN IT COMES TO PEOPLE'S PERSONAL INFORMATION AND IT COMES WITH INCREDIBLE LIABILITIES AS WELL.

THINK ABOUT ALL OF OUR AGENCIES AND ALL THE PERSONAL INFORMATION THAT THEY'RE RESPONSIBLE TO HELP SECURE FOR THE PEOPLE OF SOUTH DAKOTA.

FOR INSTANCE, THE DEPARTMENT OF HEALTH, AND ALL THE HEALTHCARE INFORMATION THAT THEY HOLD FOR INDIVIDUALS.

THINK ABOUT SOCIAL SERVICES AND THEIR CASE WORK.

THINK ABOUT CHILD PROTECTIVE PROGRAMS TO NAME A FEW.

NOW, WE HAVE AND NEED TECHNOLOGY SYSTEMS THAT WILL ENSURE PRIVACY FOR ALL OF OUR CITIZENS.

EVERY SINGLE HOUR OUR STATE SERVERS ENCOUNTER THOUSANDS OF HACKING ATTEMPTS.

WE NEED A SYSTEM THAT WILL ENSURE PRIVACY FOR ALL OF OUR CITIZENS.

IT WILL TAKE US FOUR YEARS AND $70 MILLION IN ONE-TIME FUNDING TO REPLACE THIS ACCOUNTING SYSTEM.

BUT WE HAVE TO GET IT DONE.

WE DON'T WANT TO LOOK BACK AND WISH THAT WE HAD TAKEN THIS THREAT SERIOUSLY.

MY BUDGET ALSO PROVIDES ONE-TIME FUNDING TO UPGRADE THE STATE'S EMERGENCY ALERT SYSTEM AND TO UPGRADE REMAINING STATE RADIO INFRASTRUCTURE TO SUPPORT OUR LAW ENFORCEMENT.

NOW, THEY ARE OUR HEROES.

BUT THEY HAVE TO HAVE THE TOOLS AND THE EQUIPMENT THAT THEY NEED TO CONTINUE TO SERVE OUR STATE.

[ Applause ] OUR NATIONAL GUARD SERVICE -- SERVE US EVERY DAY AND WE CAN DO MORE TO SUPPORT THEM AS WELL.

CURRENTLY THE STATE COVERS 50% OF TUITION IF A GUARD MEMBER ATTENDS A BOARD OF REGENTS INSTITUTION.

WE COVER ABOUT 80% OF TUITION IF THEY ATTEND ONE OF OUR STATE TECHNICAL COLLEGES.

I WANT TO TAKE BOTH OF THOSE NUMBERS TO 100%.

WE SHOULD FULLY SUPPORT THE MEN AND WOMEN OF OUR NATIONAL GUARD AS THEY PURSUE THEIR EDUCATION AND THEY SERVE OUR STATE AND OUR COUNTRY.

[ Applause ] WE'RE ALSO GOING TO ADDRESS THE NEEDS OF FINISHING THE SIOUX FALLS READINESS CENTER.

AND WE'RE GOING TO BE PROVIDING $8 MILLION IN ADDITIONAL FEDERAL FUND AUTHORITY TO HELP THEM COMPLETE THAT PROJECT.

I'M ALSO SUPPORTING $29 MILLION IN FEDERAL FUND AUTHORITY FOR THE FIELD MAINTENANCE SHOP FOR THE NATIONAL GUARD IN WATERTOWN.

AND THIS WILL HELP US GET MORE OF OUR READINESS CAPABILITIES IN THE SAME LOCATION.

[ Applause ] NOW I LOVE SOUTH DAKOTA.

IT IS A BEACON OF HOPE FOR THE REST OF THE NATION FOR WHAT IS POSSIBLE WHEN YOU FOLLOW CONSERVATIVE PRINCIPLES AND FISCAL RESPONSIBILITY.

WE HAVE BECOME A SUCCESS STORY BECAUSE WE KEEP GOVERNMENT LIMITED.

AND WE LIVE WITHIN OUR MEANS.

OUR BLESSINGS DON'T JUST HAPPEN TO US.

OH, YES, GOD IS GOOD ALL THE TIME.

ALL THE TIME.

BUT WE HAVE CHOICES TO MAKE THAT WILL COME WITH CONSEQUENCES FOR GENERATIONS TO COME.

IF WE ARE WISE, WE WILL PRESERVE FOR OUR CHILDREN THE LAST BEST HOPE ON EARTH.

IF WE FAIL, WELL, RONALD REAGAN DEFINED THAT TYPE OF FAILURE AS SENTENCING OUR CHILDREN TO TAKE THE LAST STEP INTO A THOUSAND YEARS OF DARKNESS.

WELL, I HAVE FAITH THAT WE WILL BE UP TO THE TASK AT HAND.

THAT WE WILL REMEMBER THE SACRIFICES OF OUR FOUNDING FATHERS.

THE BLOODSHED BY THE GREATEST GENERATION SO THAT YOU CAN BE HERE IN THIS CHAMBER TODAY.

AND THE COMMITMENT OF OUR DEPLOYED MILITARY WHO STAND RIGHT NOW IN HARM'S WAY SO THAT WE CAN BE FREE.

WE HAVE NO IDEA WHAT HARD IS.

WHAT THEY DID, WHAT THEY DO, THAT'S HARD.

WE ARE LUCKY.

WE ARE HONORED.

WE ARE BLESSED.

LET US NEVER FORGET THAT.

AND LET'S GET TO WORK.

MERRY CHRISTMAS.

[ Applause ] [ Applause ] >> THAT WAS GOVERNOR KRISTI NOEM'S BUDGET ADDRESS FISCAL YEAR 2024.

WE'LL WAIT FOR THEM TO CLOSE.

>> IS HEREBY DISSOLVED.

THANK YOU.

THANK YOU VERY MUCH.

>> AND WITH THAT, SESSION IS CLOSED.

WHILE LEE AND I WAIT TO BRING YOU SOME REACTION FROM LAWMAKERS AFTER THE GOVERNOR'S BUDGET ADDRESS, I JUST WANT TO GO THROUGH SOME OF THE MAJOR HIGHLIGHTS OF THIS ADDRESS.

OBVIOUSLY AS WE MENTIONED BEFOREHAND, THE REMOVAL OF THE TAX ON GROCERIES, THE FOOD TAX, THAT WAS ONE OF THE GOVERNOR'S RE-ELECTION PROMISES, THAT WAS A BIG POINT OF HER ADDRESS THIS AFTERNOON.

WE'LL WAIT TO SEE WHAT LAWMAKERS HAVE TO SAY ABOUT THAT.

WE'RE ALSO EXPECTING MEDICAID EXPANSION TO BE A BIG PART OF THE CONVERSATION, AS VOTERS MADE THEIR VOICES HEARD IN THE NOVEMBER ELECTION.

AS THE GOVERNOR MEMTIONED -- MENTIONED, SHE EXPECTS THOSE COSTS TO EXCEED EXPECTATIONS, WHILE THE FEDERAL GOVERNMENT HAS PROMISED TO INCENTIVIZE, THE FIRST COUPLE YEARS, THAT WILL CHANGE OVER TIME.

THE GOVERNOR ANTICIPATING UP TO $80 MILLION IN COSTS FOR THE STATE ONCE WE GET UP TO THE NEXT FIVE YEARS AFTER THOSE INITIAL YEARS THAT THE FEDERAL GOVERNMENT HAS AGREED TO INCENTIVIZE.

SOME OTHER POINTS OF NOTE THAT MIGHT HAVE COME AS A SURPRISE TO SOME.

ONE OF THE BIG POINTS OF APPLAUSE TOWARDS THE END OF THE SPEECH WAS THE GOVERNOR'S WISH TO COVER 100% OF TUITION COSTS AT STATE AND TECHNICAL COLLEGES FOR THE STATE'S NATIONAL GUARD OFFICERS.

THAT DID RECEIVE APPLAUSE FROM LAWMAKERS.

WE'LL WAIT TO SEE HOW THAT UNFOLDS DURING THE REGULAR SESSION.

SOME OTHER POINTS HAVING TO DO WITH INFLATIONARY COST INCREASES, AS THAT RELATES TO SOME OF THE LONG-TERM PROJECTS THAT LAWMAKERS HAVE ALREADY AGREED TO COVER.

THOSE MIGHT INCLUDE BOARD OF REGENTS BUILDING COSTS, THE D.E.C.

CENTER, THE STATE HEALTH LAB, THESE ARE PROJECTS THAT WERE ALREADY APPROVED UNDER A PRECEDING BUDGET THAT AS THE GOVERNOR MENTIONED SHE BLAMES JOE BIDEN'S INFLATIONARY -- PRESIDENT JOE BIDEN'S INFLATION UNDER HIS PRESIDENCY FOR COST INCREASES FOR SOME OF THOSE PROJECTS.

WE'RE GOING TO TAKE IT NOW TO SDPB'S LEE STRUBINGER FOR SOME LAWMAKERS' REACTIONS.

>> THANKS, JACKIE.

I'M STANDING HERE WITH DEMOCRATIC STATE SENATOR RONALD NESIBA, INCOMING MINORITY LEADER FOR THE STATE SENATE FOR THE DEMOCRATIC PARTY.

I WAS WONDERING, WHAT'S YOUR REACTION TO THE GOVERNOR'S BUDGET THAT SHE JUST OUTLINED?

>> WELL, LET ME JUST START BY SAYING, THAT THERE'S SOME THINGS THAT DEMOCRATS HAVE BEEN ADVOCATING FOR YEARS.

THE FIRST TIME I WAS EVER IN THIS BUILDING WAS TO ADVOCATE FOR CUTTING THE SALES TAX ON FOOD BACK IN 2004.

I HAD A BILL TWO YEARS AGO, REACHED OUT TO MILITARY AFFAIRS TO INCREASE OUR TUITION INCREASES TO 100%, AND WE'VE ALSO HAD BILLS FOR PAID FAMILY LEAVE.

AND, SO, ON THOSE THREE THINGS, WE LOOK FORWARD TO WORKING WITH THE GOVERNOR AND TRYING TO GET THOSE THINGS DONE.

>> WHY DO YOU THINK NOW IS THE TIME FOR THOSE POLICIES?

>> RIGHT.

WE DO HAVE JUST AMAZING REVENUES THAT ARE COMING IN AT THE MOMENT.

SO UNPRECEDENTED.

SHE REALLY TALKED ABOUT THE $300 MILLION THAT WE'RE ON PACE TO BE OVER BUDGET, MORE THAN $100 MILLION IN ONE-TIME MONEY.

SO WE CAN AFFORD TO DO A VARIETY OF THINGS SIMULTANEOUSLY.

WE CAN CUT TAXES, AND WE CAN INCREASE BUDGETS THAT NEED TO BE INCREASED.

NOW, WHERE I DO DISAGREE WITH THE GOVERNOR IS THAT SHE DID TALK MULTIPLE TIMES ABOUT BIDEN INFLATION.

SHE NEVER MENTIONED, THOUGH, THAT BIDEN'S ARPA, THE AMERICAN RECOVERY ACT, GAVE OVER $3 BILLION TO THE STATE OF SOUTH DAKOTA.

IT'S AN IMPORTANT REASON FOR WHY SOUTH DAKOTA INCOME HAS BEEN GROWING SO RAPIDLY OVER THE LAST YEAR OR TWO.

AND, SO, THAT'S IMPORTANT.

SO, IF WE HAVE 8% INFLATION THAT WE HAD LAST YEAR, AND WE ONLY GAVE A 6% COST-OF-LIVING ADJUSTMENT, OUR EDUCATORS, OUR STATE EMPLOYEES, C.S.P.s, WENT BACKWARDS 2% LAST YEAR, BECAUSE IF YOU GET -- HAVE 8% INFLATION AND YOUR BOSS GIVES YOU A 6% COST-OF-LIVING ADJUSTMENT, YOU GO BACKWARDS BY 2.

THIS YEAR INFLATION IS STILL ABOUT 8%.

SHE'S PROPOSING A 5% INCREASE.

SO BY MY ACCOUNTING, OUR STATE EMPLOYEES, OUR TEACHERS, ARE FALLING BEHIND 5% IN REAL TERMS OVER THE LAST TWO YEARS.

SO WHAT I WAS REALLY HOPING TO HEAR FROM HERE TODAY WAS A 10% ACROSS-THE-BOARD INCREASE.

SHE'S ONLY HALFWAY THERE IN TERMS OF WHAT WE NEED TO DO FOR EDUCATION, STATE EMPLOYEES AND THE C.S.P.s.

>> I WANT TO GET BACK TO THAT 310 IN PERMANENT ONGOING REVENUE THAT THE GOVERNOR SAID.

YOU MENTION THOSE ARPA DOLLARS HAD HAD COME IN -- THAT ARE STILL COMING IN OVER THE COURSE OF THESE LAST FEW YEARS.

BUT THAT MONEY'S NOT GOING TO LAST FOREVER.

WILL $310 MILLION BE ONGOING AFTER THAT RUNS OUT?

>> AGAIN, I DO THINK THAT WHAT WE'VE SEEN OVER THE LAST SEVERAL YEARS IS THAT SOUTH DAKOTA'S POPULATION IS CONTINUING TO INCREASE.

WE'RE HAVING AN INCREASE IN OUR WORKFORCE, AND, AGAIN, INFLATION ALSO INCREASES OUR SALES TAX REVENUE.

AND, SO, I DO THINK THAT WE ARE GOING TO, EVEN IF WE DO HAVE A RECESSION, WHICH I EXPECT NEXT YEAR OR THE YEAR AFTER, I DO THINK THAT WE WILL BE ABLE TO HAVE THE REVENUE STREAM TO BOTH CUT TAXES AND TO INCREASE OUR EXPENDITURES SIMULTANEOUSLY, WHILE BALANCING OUR BUDGET.

>> SENATOR NESIBA, THANKS SO MUCH FOR JOINING ME.

I APPRECIATE IT.

>> GOOD.

THANK YOU, LEE.

THANK YOU, UPSTAIRS, JACKIE.

>> BACK TO YOU.

>> THANKS, LEE.

I'M HERE WITH REPRESENTATIVE MORTENSON, FROM PIERRE, INCOMING MAJORITY LEADER IN THE HOUSE.

REPRESENTATIVE MORTENSON, KIND OF INITIAL THOUGHTS ON WHAT YOU HEARD TODAY?

>> YOU BET.

IT WAS A PROMISING SPEECH FROM THE GOVERNOR.

SHE DID A NICE JOB OF LAYING OUT HOW WE'RE GOING TO MEET SOME OF OUR OBLIGATIONS AND MAYBE SOME OPPORTUNITIES SHE SEES FOR US TO TAKE.

IT'S HER OBLIGATION UNDER THE CONSTITUTION TO LAY OUT A RECOMMENDATION AND A BUDGET FOR US.

AND IN ANOTHER MONTH, WE'LL GET TOGETHER TO WORK THROUGH IT AND TO MAKE THE BUDGET.

SO SHE RECOMMENDS, I THINK SHE DID A NICE JOB, BUT WE'LL PUT PENCIL TO PAPER ON EVERY SINGLE ONE OF THEM AND SCRUTINIZE IT ALL THE WAY DOWN, AS SHE ASKED US TO DO AND GET TO A PRODUCT BY MARCH.

>> NOW, YOU WERE HERE LAST SESSION, YOU SAW HOW THINGS SHOOK OUT WITH REMOVING THE FOOD TAX -- A PROPOSAL TO REMOVE THE FOOD TAX.

CHAMBERS COULDN'T QUITE AGREE.

NOW THIS IS SOMETHING ON THE GOVERNOR'S TO-DO LIST FOR THE SESSION.

WHAT ARE YOUR THOUGHTS ON THAT?

HOW DO YOU SEE IT SHAKING OUT?

>> ONE THING ABOUT IT, IT WASN'T JUST LAST YEAR THAT THAT CAME AROUND.

THAT'S BEEN AN IDEA THAT'S BEEN AROUND THIS BUILDING FOR MORE THAN A DECADE.

IT'S A POLICY DEBATE THAT I THINK THAT WE'RE ALL PRETTY USED TO, RIGHT?

I MEAN, WE UNDERSTAND WHO MAYBE BENEFITS AND SOME OF THE PRACTICAL LOGISTICAL CONCERNS.

THIS IS REALLY THE FIRST YEAR WE CAN AFFORD TO BE TALKING ABOUT THAT IN VERY REAL TERMS.

AND I THINK THE GOVERNOR DID A NICE JOB IN EVEN HER CAMPAIGNING THIS FALL, MAKING THE CASE FOR IT.

ONE THING ABOUT IT, THOUGH, ON THE LEGISLATIVE SIDE, THAT'S NOT REALLY A DECISION WE'RE GOING TO MAKE UNTIL WE KNOW WHERE IT FITS IN THE BROADER BUDGET PICTURE.

SO WE'RE TALKING LATE FEBRUARY, EARLY MARCH ON THAT.

I SUSPECT THAT WE AS A STATE AND AS A BIG FAMILY, YOU'RE GOING TO GET TO HAVE A ROBUST CONVERSATION ABOUT IT BETWEEN NOW AND MARCH WHEN THAT DECISION'S ACTUALLY GOING TO GET MADE.

>> AND ONE LAST QUESTION FOR YOU.

ANOTHER BIG SPENDING ITEM IS THE STATE'S PRISONS.

WE KNOW ROUGHLY $34 MILLION -- I'M SORRY -- $52 MILLION JUST TO PURCHASE NEW LAND FOR OUR OUTDATED STATE PENITENTIARY.

WHAT ARE SOME OF THE THINGS THAT YOU'RE HEARING FROM YOUR COLLEAGUES AND IS THAT TOO BIG OF AN ASK FOR A YEAR LIKE THIS?

>> WELL, I WILL TELL YOU, NOBODY IS SMILING THINKING ABOUT HAVING TO BUILD PRISONS.

OH, IT'S SOMETHING THAT I THINK WE'VE TRIED OVER TEN YEARS OF DIFFERENT POLICY ITERATIONS TO AVOID.

BUT THE FACT OF THE MATTER IS, THAT'S A CORE OBLIGATION OF STATE GOVERNMENT.

THERE'S A LOT OF THINGS THAT WE CAN DO IF WE HAVE MONEY TO OR IT WOULD BE NICE TO DO THIS OR THAT.

PROTECTING THE PUBLIC AND BUILDING OUR PRISONS AND MAINTAINING THEM IN A SUITABLE CONDITION IS A CORE OBLIGATION OF STATE GOVERNMENT.

AND SO, THAT'S SOMETHING THAT THE LEGISLATURE WORKED ON THROUGH THIS SUMMER, I WAS HAPPY TO SEE THAT THE GOVERNOR FOLLOWED THE RECOMMENDATIONS OF THE INCARCERATION TASK FORCE AND, SO, WE'RE TALKING ABOUT A LOT OF MONEY, THOUGH.

AND, SO, YOU KNOW, THERE'S $112 MILLION THAT SHE PROPOSED TO BE SPENDING ON A WOMEN'S FACILITY IN RAPID CITY.

AND BASICALLY LAY THE GROUNDWORK FOR A MEN'S FACILITY IN PIERRE.

I DON'T KNOW THAT OUR APPROPRIATORS ARE SALIVATING AT GETTING DOWN TO WHAT EVERY SINGLE ONE OF THOSE DOLLARS IS GOING.

AS SOON AS YOU TALK ABOUT NINE FIGURES, WE ALL GET PRETTY COMFORTABLE WITH THAT, THAT'S WHEN THE SCRUTINY REALLY TURNS UP.

>> REPRESENTATIVE MORTENSON, THANK YOU FOR YOUR TIME.

I APPRECIATE IT.

LEE, BACK TO YOU.

>> THANKS, JACKIE.

I'M STANDING HERE WITH SENATE SENATOR KASEY CRABTREE, THE INCOMING MAJORITY LEADER IN THE STATE SENATE, REPUBLICAN FROM MADISON.

WHAT WAS YOUR REACTION TO THE GOVERNOR'S SPEECH?

>> I THINK THE GOVERNOR DID A GREAT JOB.

TODAY REALLY STARTS THE UNOFFICIAL START OF THE LEGISLATIVE SESSION.

RIGHT?

WE'LL PICK IT BACK UP HERE IN JANUARY.

BUT GREAT START TODAY.

LOTS OF GOOD THINGS FOR US TO DISCUSS.

AND REALLY LOOKING FORWARD TO GETTING TO WORK.

>> YOU KNOW, I'VE TALKED WITH A LOT OF LAWMAKERS OVER THE YEARS WHO SAY, THE YEARS WHEN THE STATE HAS MONEY, THOSE ARE THE MOST CONTENTIOUS YEARS.

SOUNDS LIKE WE HAVE A LOT OF MONEY TO WORK WITH THIS COMING SESSION.

HOW DO YOU THINK THAT'S GOING TO SHAKE OUT?

>> WELL, YOU KNOW, SOUTH DAKOTA'S BY AND LARGE, A GREAT, GREAT PLACE, RIGHT?

WE HAVE SOME TOUGH CHALLENGES, BUT WE'VE GOT A GREAT STATE WITH A LOT OF GREAT THINGS GOING ON.

AND, SO, SOMETIMES IT'S REALLY ABOUT MAKING SURE THAT WE DON'T DO TOO MUCH ONE WAY OR THE OTHER.

BUT I THINK WE LOOK AT THIS, YOU'RE RIGHT, THE SESSION'S MUCH EASIER WHEN THERE'S LESS DOLLARS.

BUT WE'VE GOT SOME TOUGH CHALLENGES TO TACKLE.

AND I THINK THAT THE TOUGHNESS OF THE SITUATION WHERE SOMETIMES IT'S NOT SO EASY, IT SHOULD BE TOUGH TO GET THINGS PASSED, IT SHOULD BE TOUGH TO SPEND TAXPAYERS' MONEY.

SO I THINK THAT'S A GOOD THING.

BUT I THINK WE'LL BE ABLE TO WORK TOGETHER REALLY WELL.

WE HAVE A HOUSE AND A SENATE THAT'S REALLY FOCUSED ON TACKLING SOME OF THE TOUGHEST CHALLENGES THAT ARE OUT THERE, AND I THINK THAT WILL HELP US A LOT.

IT WILL BE GOOD.

>> SO, $310 IN ONGOING REVENUES.

OBVIOUSLY THE GOVERNOR MENTIONED DURING HER CAMPAIGN FOR GOVERNOR THE $100 MILLION SALES TAX CUT ON FOOD.

THAT IDEA FAILED IN THE SENATE LAST YEAR.

WHERE DO YOU -- OBVIOUSLY YOU HAVEN'T TALKED TO YOUR MEMBERS AFTER THE SPEECH, BUT, YOU KNOW, WHERE DO YOU THINK YOUR MEMBERS KIND OF SIT ON THAT IDEA, WHICH WILL LIKELY TAKE UP A LOT OF SESSION?

>> YEAH.

I THINK IT WILL BE A NUMBER ONE THING THAT'S DEBATED THIS SESSION.

WHEN WE LOOK AT, YOU KNOW, THE FUTURE HERE, WHAT OUR CAUCUS IS GOING TO DO, COME BACK TOGETHER, THE HOUSE WILL DO THE SAME, WE'LL COME BACK TOGETHER, WE'LL GET A CHANCE NOW TO SET OUR PRIORITIES AND OUR BUDGET.

AND THEN TRY TO FIND THOSE WAYS WE CAN MATCH THOSE UP.

AND, SO, THERE WILL BE A LOT OF DISCUSSIONS ON THAT.

AND I KNOW WE'RE WILLING TO TACKLE THE TOUGHEST PROBLEMS TOGETHER.

AND I THINK WE'LL WORK REALLY WELL, BOTH THE HOUSE AND THE SENATE TOGETHER, BUT ALSO THE HOUSE AND SENATE AND THE GOVERNOR TOGETHER.

SO I'M REALLY LOOKING FORWARD TO THAT.

>> WISH WE COULD TALK MORE BUT I'VE GOT TO SEND IT TO JACKIE.

THANK YOU SO MUCH.

>> THANK YOU.

>> BACK TO YOU, JACKIE.

>> THANKS, LEE.

I'M HERE WITH REPRESENTATIVE AARON HEALEY, NOW ASSISTANT MINORITY LEADER FROM SIOUX FALLS.

REPRESENTATIVE HEALEY, WHAT WAS MISSING FROM TODAY'S BUDGET ADDRESS?

>> YEAH, I REALLY FELT LIKE CHILD CARE WAS MISSING.

WE SEE A MAJOR CRISIS HERE IN OUR STATE.

IT IS A WORKFORCE DEVELOPMENT ISSUE.

WE REALLY NEED TO ENSURE THAT WE ARE SUBSIDIZING CHILD CARE FOR OUR STATE SO WE CAN SEE MORE AFFORDABLE CHILD CARE FOR PEOPLE WHO NEED TO GO TO WORK AND PEOPLE WHO HAVE KIDS.

>> AND WE DO KNOW FAMILY LEAVE WAS ANOTHER POLICY THAT WE HEARD ABOUT TODAY, UPPING COVERAGE FOR STATE EMPLOYEES AND INCENTIVES FOR PRIVATE BUSINESSES.

WHAT WAS YOUR RESPONSE WHEN YOU HEARD SOME OF THOSE PRIORITIES?

>> THAT WAS DEFINITELY A WIN.

I WAS VERY ENCOURAGED TO SEE THAT WE'RE GOING TO SEE 100% WAGES PAID FOR 12-WEEKS' LEAVE.

THAT'S REALLY IMPORTANT FOR HARDWORKING SOUTH DAKOTANS WHO ARE EXTENDING THEIR FAMILIES AND BRINGING BABIES AND CHILDREN HOME.

I'M ALSO REALLY ENCOURAGED TO SEE THAT BUSINESSES ARE GOING TO BE ALLOWED TO PARTICIPATE.

>> AS WE'RE LOOKING AT SOME OF THESE OTHER INCREASES, FOR EXAMPLE, PROPOSED 5% INCREASE FOR STATE EMPLOYEES, STATE PROVIDERS, AND SOME OF THESE OTHER -- EDUCATION AID, ARE THESE INCREASES ENOUGH?

ARE WE MISSING SOMETHING IN SOME OF THESE OTHER PLACES THAT THE STATE HAS OBLIGATIONS TO?

WHAT ARE YOUR THOUGHTS?

>> I WAS HOPING TO SEE A LARGER INCREASE, A 5% INCREASE ISN'T ENOUGH FOR AN 8% RATE OF INFLATION THAT WE'VE SEEN FOR OVER TWO YEARS NOW.

I WOULD HAVE REALLY LIKED TO SEE A HIGHER RATE BECAUSE WE ARE TRYING TO KEEP UP WITH THE COST OF LIVING AND WITH LIVING ADJUSTMENTS, AND IT IS VERY DIFFICULT TO DO THAT WHEN YOU ONLY SEE A 5% INCREASE THIS YEAR AND ONLY A 6% INCREASE OF LAST YEAR.

SO WE HAVE A LOT OF MAKING UP TO DO IN THE YEARS TO COME.

>> AND BEFORE I LET YOU GO, WHEN WE TALKED ABOUT MEDICAID EXPANSION OR HEARD ABOUT MEDICAID EXPANSION FROM THE GOVERNOR, OBVIOUSLY VOTERS APPROVED THIS.

THE LEGISLATURE IS OBLIGATED NOW TO SEE THAT THROUGH.

THE GOVERNOR DID NOTE A HOPE TO GIVE PEOPLE OPTIONS OUTSIDE OF THESE GOVERNMENT SAFETY NETS, KIND OF IMPLYING THAT IT IS THE LEGISLATURE'S RESPONSIBILITY TO GIVE FOLKS OPTIONS OUTSIDE OF THAT GOVERNMENT REALM.

WHAT DID YOU TAKE AWAY FROM THAT?

AND DO YOU OPEN SEEING -- DO YOU ANTICIPATE SEEING ANY BILLS TO THAT END FROM YOUR CAUCUS OR DOWN THE LINE?

>> I WAS REALLY HAPPY TO SEE THAT MEDICAID EXPANSION DID PASS.

I THINK THAT IS A WONDERFUL OPTION FOR LOW-INCOME ADULTS, FOR CHILDREN, FOR PREGNANT WOMEN, FOR THE ELDERLY AND FOR PEOPLE WITH DISABILITIES.

I HOPE THAT WE UTILIZE THIS OPTION.

ONE THING THAT WE DID HEAR FROM HER, WHICH I HAVE TAKEN A SPECIAL INTEREST IN MYSELF IS EXTENDING POST-PARTUM CARE TO 12 MONTHS FOR WOMEN.

>> REPRESENTATIVE ERIN HEALEY, DISTRICT 14 IN THE SIOUX FALLS AREA, THANK YOU SO MUCH.

LEE, I'LL SEND IT BACK TO YOU.

>> GREAT, JACKIE, THANK YOU.

I'M STANDING HERE WITH REPUBLICAN REPRESENTATIVE TONY VAN HEYESEN FROM SIOUX FALLS.

REPRESENTATIVE-ELECT, I SHOULD SAY, YOU'RE GOING TO BE ON THE BOARD OF APPROPRIATIONS WHICH CRAFTS THE STATE BUDGET.

SO THIS SPEECH OBVIOUSLY A REALLY BIG DEAL.

BHARP SOME OF YOUR TAKEAWAYS?

>> CERTAINLY A POSITIVE SPEECH, OPTIMISTIC SPEECH.

WE'RE FORTUNATE TO BE HERE IN SOUTH DAKOTA WHERE THE ECONOMY IS SO STRONG AND WE HAVE THIS OPPORTUNITY.

OF COURSE THE HIGH INFLATION WE'RE SEEING NATIONALLY ALSO MEANS WE HAVE A LOT OF NEEDS AND A LOT OF RECIPIENTS OF STATE FUNDS LOOKING FOR MORE.

SO WHAT I HEARD TODAY WAS AN EXCELLENT PRESENTATION BY THE GOVERNOR, VERY WELL THOUGHT OUT.

IT'S HER JOB TO PRESENT A BALANCED BUDGET THAT IS A BASIS FOR OUR DISCUSSION.

AND NOW THOSE OF US IN THE LEGISLATURE, PARTICULARLY ON THE APPROPRIATIONS COMMITTEE, WILL BE GOING THROUGH THAT LINE BY LINE AND ASKING QUESTIONS AND GETTING THAT TO A FINAL PRODUCT IN MARCH.

>> YEAH.

SO THE GOVERNOR TALKED ABOUT $310 IN ONGOING REVENUE GOING FORWARD.

OBVIOUSLY THE $100 MILLION SALES TAX WOULD BRING THAT DOWN TO $200.

>> RIGHT.

>> YOU KNOW, THE STATE HAS RECEIVED A LOT OF FEDERAL MONEY FROM CORONAVIRUS RELIEF.

IS THAT 310 IN ONGOING, WILL THAT CONTINUE ONCE THOSE DOLLARS RUN OUT?

>> WELL, THAT'S AN IMPORTANT QUESTION.

NOW, WE'VE BEEN WONDERING THAT NOW FOR TWO OR THREE YEARS.

THE CORONAVIRUS MONEY STARTED COMING IN IN 2020, ALMOST THREE YEARS AGO.

WE'VE ALSO SEEN THIS INFLATION GO UP AND THE OTHER THINGS THAT HAVE HAPPENED.

SO WE'VE SEEN REVENUE GROWTH, AS THE GOVERNOR SAID, UNLIKE ANYTHING WE'VE EVER SEEN BEFORE.

THE FIRST FOUR OR FIVE MONTHS OF THIS FISCAL YEAR, 14%.

WE USED TO HOPE FOR 5%.

A BIG QUESTION IS, IS THIS SUSTAINABLE GOING INTO THE FUTURE?

BUT AT THIS POINT, WE'RE TWO, THREE YEARS INTO THIS SO A LOT OF IT PROBABLY IS SUSTAINABLE.

BUT THAT'S GOING TO BE A KEY QUESTION GOING FORWARD AS WE DON'T WANT TO BE IN A POSITION WHERE WE OVERSPEND AND THEN FIND OURSELVES FALLING OFF A CLIFF.

>> WHAT ARE SOME OF THE TOP ISSUES THAT YOU THINK THE STATE CAN REALLY ADDRESS?

YOU KNOW, WHEN WE THINK ABOUT THE BUDGET, WHERE THOSE DOLLARS REALLY GO.

>> WELL, I THINK A LOT OF THEM ARE WHAT THE GOVERNOR SPOKE TO.

CERTAINLY TAX RELIEF, I THINK THERE'S A WIDE RECOGNITION THAT THIS IS THE YEAR FOR TAX RELIEF, AS STRONG AS OUR ECONOMY HAS BEEN.

TAKING CARE OF THE MAIN RECIPIENTS OF FUNDS, EDUCATION, MEDICAID PROVIDERS, STATE EMPLOYEE SALARIES, I WAS VERY HAPPY TO HEAR THAT SHE'S PROPOSING MORE FUNDING FOR NURSING HOMES, COMMUNITY SUPPORT PROVIDERS.

WE'VE HEARD THAT THEY'RE REALLY FALLING BEHIND.

AND THEN WE'RE GOING TO BE DOING A LOT OF TALK ABOUT PRISON CONSTRUCTION.

YOU KNOW, NO ONE WANTS TO BUILD A PRISON, BUT THE ONLY THING WORSE IS TO NOT HAVE A PRISON.

WE NEED TO FIGURE OUT WHAT WE NEED TO DO TO PREPARE FOR OUR STATE FOR THE NEXT 100 YEARS THERE.

>> REPRESENTATIVE, THANK YOU SO MUCH FOR YOUR TIME.

I APPRECIATE IT.

>> THANK YOU.

>> BACK TO YOU, JACKIE.

>> THANKS, LEE.

THAT WILL CONCLUDE SDPB'S SPECIAL COVERAGE OF THE FISCAL YEAR 2024 BUDGET ADDRESS FROM GOVERNOR KRISTI NOEM.

FOR ONGOING COVERAGE, YOU CAN CERTAINLY FOLLOW US ONLINE AT SDPB.ORG/NEWS.

ON TOMORROW'S "IN THE MOMENT," A FULL HOUR OF COVERAGE AND ANALYSIS OF TODAY'S BUDGET ADDRESS AS WELL.

YOU CAN LISTEN LIVE AT NOON CENTRAL, 11:00 MOUNTAIN AND AGAIN AT 7:00 CENTRAL, 6:00 MOUNTAIN ON SDPB RADIO.

AND BE SURE TO JOIN US AGAIN, THE STATE OF THE STATE SPECIAL COVERAGE, THAT COMES JANUARY 10th, AT NOON CENTRAL, 11:00 MOUNTAIN.

BUT IN THE MEANTIME, ON BEHALF OF ALL OF US AT SOUTH DAKOTA PUBLIC BROADCASTING, I'M JACKIE HENDRY.

THANK YOU FOR WATCHING.