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ICYMI: Gov. Noem Delivers 2021 Budget Address

December 7, 2021

PIERRE, S.D. – Today, Governor Kristi Noem delivered her 2021 Budget Address. The Address included Governor Noem’s recommendations for the remainder of Fiscal Year 2022 and Fiscal Year 2023. You can watch the full Budget Address here.


Governor Noem highlighted South Dakota’s strong economy and resulting strong revenues. “South Dakota has the strongest economy in America,” said Governor Kristi Noem. “But know this: South Dakota is not successful because of government. Our state motto says it best: Under God, the People Rule.”


Total general fund receipts are up 11.4% over last year’s historic numbers. She advised the legislature that there are $215.5 million in one-time dollars for fiscal year 2022 and $157.6 million in ongoing general funds. The state also has American Rescue Plan (ARPA) dollars from the federal government available.


“To the fullest extent that we can, we are going to put those funds to work for our state, to address our state’s most pressing needs, to make fiscally responsible, one-time expenditures that will not grow the government, but that will save our people money in the long run,” Governor Noem advised the legislature in spending this money.


Governor Noem highlighted several key funding initiatives to invest in South Dakota’s workforce, build infrastructure for the future, and strengthen our public safety.


Investments in South Dakota’s workforce include:

  • $150 million in state general funds for workforce housing, plus $50 million in ARPA dollars for matching sewer projects. These funds will be matched equally by developers and municipalities for a $600 million total investment;
  • 6% inflationary increases to state employees, education, and healthcare providers;
  • $100 million in ARPA dollars allocated to the Department of Social Services for childcare grants;
  • $30 million to facilitate new cybersecurity training at Dakota State University;
  • $17 million to enhance workforce training capacity at our technical colleges;
  • $35 million to the Department of Tourism to facilitate tourism and workforce marketing efforts; and
  • $2.5 million in ongoing funding to expand the Bright Start program for new mothers statewide.


Infrastructure projects for the future include:

  • $660 million in ARPA funding for statewide water projects;
  • $6.5 million for dam repairs, especially the Richmond Dam near Aberdeen;
  • $5.6 million to repair public recreation areas damaged by 2019 floods, including $3 million for Lake Alvin;
  • $69.6 million in ARPA Capital Projects Funds to build and remodel the State Public Health Lab; and
  • $10 million to Custer State Park to create 175 new campsites.


Efforts to strengthen public safety include:

  • $28 million to build a new Department of Corrections (DOC) Community Work Center for Women in Rapid City;
  • $2.1 million in targeted pay increase for DOC employees;
  • $15 million to construct regional mental health crisis management centers across the state;
  • $24 million for a comprehensive reform proposal for EMS and first responders;
  • Funding to respond to emerging threats, like human trafficking, drugs, crimes against children, Medicaid fraud, and cyber threats; and
  • Improvements to National Guard Readiness Centers, including the Wagner Readiness Center, Sioux Falls Readiness Center, and facilities in Rapid City.


You can review Governor Noem’s full budget proposal for Fiscal Years 2022 and 2023 here. For information about specific funding initiatives, download the one-pagers (Budget Topic Briefs) here.