Workforce needs, the budget and tax cuts will be on the minds of South Dakota lawmakers when the Legislature convenes Tuesday for a two-month session.
Republican will address the GOP-controlled Legislature on the session's opening day. Last month, she to the Legislature, and now it's up to lawmakers to craft a plan for the next fiscal year, among other measures.
Republican House Majority Leader said South Dakota's short session 鈥 38 days spread over about two months 鈥 鈥渉elps keep us focused on only the most important topics."
鈥淚 tell my caucus often that our only two jobs we absolutely have to do are passing a budget and getting the hell out of there,鈥 Mortenson said.
Republican majority leaders largely support Noem's agenda, in part because of South Dakota's strong finances. State revenues have exceeded the Legislature's 2023 forecast by 11%, or $115 million, from July through November, the first five months of the fiscal year, according to a state Bureau of Finance and Management
Republican priorities are , college affordability, workforce needs and the sustainability of long-term care in rural communities. They expect to be working with less money after years of COVID-19 pandemic-era federal aid.
Democrats are focused on child care needs, pre-K education and teacher pay.
Noem has emphasized a lean budget amid rising inflation, proposing a nearly $7.3 billion plan for fiscal year 2025. She called for 4% increases for the state's 鈥渂ig three鈥 priorities of K-12 education, health care providers and state employees.
Budget writers will review the 4% proposal in the context of the entire budget, Mortenson said.
鈥淚 was encouraged that the governor focused the vast majority of our ongoing dollars on core priorities,鈥 he said.
Noem also has proposed making a temporary sales tax cut permanent. The four-year reduction was approved in 2023.
Republican state Rep. Chris Karr has filed a bill to make that change, citing years of state revenue surpluses.
鈥淕overnment collects taxes to provide certain services. When those services are provided, any excess dollars should go back to the people because that's who it belongs to," Karr said. Sales taxes are the main driver of South Dakota's state revenues.
Mortenson predicted House Republicans will coalesce around a permanent sales tax cut.
Senate Majority Leader said Senate Republicans will consider other potential tax cuts, possibly including property taxes.
鈥淚 think the conversation is what do we cut and how much do we cut going forward,鈥 he said.
Workforce needs loom large, Mortenson said. South Dakota has more than 20,000 job openings advertised online and had a 2% unemployment rate as of November 2023, according to the state Department of Labor and Regulation.
Mortenson also sees college affordability as 鈥渁bsolutely critical for our state鈥檚 future,鈥 to keep young people in South Dakota and attract others from out of state.
Democrats, who hold 11 of 105 seats, are pursuing bills 鈥渢hat really directly help working-class people,鈥 Senate Minority Leader Reynold Nesiba said.
He listed proposals to lengthen the period for people to file a worker compensation claim if injured at work, and to incrementally raise the minimum wage to $15 an hour, as voters did in 2022.
Advocates for LGBTQ and voting rights expressed concern about possible lawmaker actions.
Samantha Chapman, advocacy manager for the American Civil Liberties Union of South Dakota, called recent legislation restricting gender identity a 鈥渕isuse of the way our government is supposed to work, to constantly be passing bills that are clawing away at a small portion of our population's rights.鈥
Crabtree said that when discussions of those issues arise, 鈥測ou're going to see common sense prevail."
Dakotans for Health co-founder Rick Weiland said he is leery of the Legislature potentially trying to raise the bar for ballot initiatives, citing a defeated that sought to require 60% of voters to support certain spending or tax measures for the initiatives to pass.
Republican state Rep. Jon Hansen, who sponsored the measure, said in a 2021 floor session that certain money issues deserve more support than a simple majority vote.
鈥淚 think each and every time they try to mess with the will of the voters and direct democracy, they get themselves in trouble," Weiland said.
He is leading efforts to put two measures on the 2024 ballot: one in the state constitution, and another to repeal the state鈥檚 grocery tax.
South Dakota outlaws all abortions but for life-saving circumstances. Weiland called it the most extreme abortion law in the country. Noem campaigned for on , but the with the temporary sales tax cut of $104 million annually.
Noem is in her second term as governor. Once seen as a potential 2024 presidential candidate, she has embraced former President Donald Trump's reelection bid, .
