SD State Budget
Did you know that two thirds of our funding comes from the federal government?
OK, pet political projects may or may not be stupid. But even if there’s a strong consensus from the citizenry that a project is necessary, its scope and style should be tailored to our means. This will ensure that South Dakotans, and not bureaucrats in Maryland and Virginia, are calling the shots in our state.
What’s in a Number?
The 2026 SD budget is a nearly $7,900 expenditure per every man, woman, and child in the state. (Divide the total budget by the total state population.) If we were paying this out of pocket, that would be a life-altering chunk of change for a family of four. That does not count what counties and communities charge us for schools and local projects.
The state budget is $7,300,714,543 (7+ Billion).
Slide 7 from the Fiscal Year 2026 Budget Overview gives a graphic overview of how the multi-Billion dollar budget pie is sliced.
Look at the last page in the State Revenue Estimates presented to the Appropriations Committee.
Remember: The state budget is $7,300,714,543 (7+ Billion).
That’s a lotta lettuce!
The anticipated revenues from in-state taxes and fees are $2,446,139,236 (~2.5 Billion).
Where does the revenue come from to pay the additional $4,854,575,307 (~5 Billion) in the budget?
This “red” state of South Dakota depends on federal government funding for about 66% of its budget.
Federal funding gives the federal government enormous power over the state.
If South Dakotans want to drive our own agenda, then we must pay our own way. To do that, we either tax ourselves into personal poverty to pay for every program and project that seems like a good idea to someone; or we get serious about not funding inorganic growth projects or monuments to political ambition. Let’s be private wealth creators, not public wealth consumers. Live within our means or bow down.
good post, you are correct, but one has to remember, there are two "states" - The Republic and the Federal State.
The "Republic of South Dakota" is the People of South Dakota whom are a independent and sovereign people, they have their own state revenues and state expenses to manage themselves. It has a annual tax budget of $2,400,000,000 billion dollars.
The "Federal State of South Dakota" is the federal state, basically the "federal government' which raises federal taxes to fund federal Departments, Offices, Agencies, Administration, and Services. It has a annual budget of nearly $3,000,000,000 billion dollars.
Now, it is true, as a "republic" the People of South Dakota can also submit requests to the U.S Treasury to obtain federal grants and monies where they wish. These funds would be separate from the "Federal State"
Since 1871, when they "incorporated" the District of Columbia aka UNITED STATES, they created the administrated deep state, while in 1874 created a separate municipal government in D.C which now 'acts' as one large territory which has since incorporated all 50 Federal States as one.
This has blurred some of the jurisdictional boundaries making many to believe the two are one.
From 1789-1860, we only had the State, Treasury, War, Interior, Post Office at teh Federal Level. WE agreed to allow federal enclaves in the our republic, but the federal monies stayed in the U.S Treasury to run those federal offices.
But today, the U.S Treasury deposits federal money in the State Treasuries who now act as contractors to manage certain "federal programs and services" which blinds the two all together.