HB 1326 allocates state funding for the 2026-2027 fiscal year to cover ordinary expenses of the legislative, judicial, and executive branches, state institutions, public debt interest, and common schools. The bill establishes budget limits for various state agencies and departments, including the Governor's office, economic development initiatives, housing authority, and science and technology programs. Key provisions include reducing $20 million in federal grant authority for expiring Infrastructure Investment and Jobs Act broadband grants while maintaining funding for other economic development services. The legislation sets expenditure caps for each budget unit and allows agencies to use base funds to supplement line item changes, with conditions effective through June 30, 2027.
SB 231 creates a Water Infrastructure Development Fund to support rural water projects in South Dakota. The fund, initially seeded with $3 million from the state general fund (Section 2), provides grants (up to 10% of project costs) and loans (up to 50% of project costs) managed by the Board of Water and Natural Resources (Section 1). It directly affects rural communities needing upgrades to water infrastructure, such as new systems or repairs. The bill declares an emergency to allow immediate implementation upon passage (Section 3).
HB 1281 reduces sales and use tax rates on non-prepared food (like groceries) for consumers while increasing tax rates on other items, including certain excise taxes and use taxes. The bill establishes a new fund specifically for school district capital projects, such as building construction or major equipment purchases. It defines "food" to exclude prepared meals (e.g., restaurant takeout), alcohol, tobacco, and candy, ensuring the tax cut applies only to basic grocery items. The policy shifts tax burden from grocery shoppers to other taxable goods and services to finance school infrastructure.
HB 1291 amends South Dakota's formula for calculating school district funding by changing how "fall enrollment" is determined. It specifically adjusts the count of students in state custody (like foster care) and those receiving tuition from other districts when calculating a district's base funding. The bill also updates the method for calculating "target teacher ratio" based on district size and ties future teacher salary adjustments to the consumer price index (inflation). These changes directly affect how much state funding school districts receive under South Dakota's education finance system.
HB 1262 appropriates $2 million from the general fund to construct a juvenile corrections center in Brown County, including necessary infrastructure like utilities and equipment. The bill directs the Department of Corrections to manage the project, with the Bureau of Human Resources overseeing design and construction. It declares an emergency to expedite funding, requiring immediate use of the allocated funds for the facility's completion. The bill does not affect specific individuals but directly provides resources for a state-run juvenile corrections facility in Brown County.
HB 1293 appropriates $6.8 million from South Dakota's general fund to increase benefit amounts for the Temporary Assistance for Needy Families (TANF) program. It directs the Department of Social Services to provide TANF benefits equal to fiscal year 2025 levels starting immediately and continuing through July 1, 2027. The bill declares an emergency to allow immediate implementation of these increased benefits. This funding directly affects TANF recipients by raising their monthly support payments for a two-year period.
SB 222 appropriates $10 million from South Dakota's general fund to the Department of Agriculture and Natural Resources for grants supporting water, wastewater, storm water, and nonpoint source pollution projects. It directly affects municipalities and water systems serving residents, with funding calculated as a percentage of project costs based on population: up to 80% for systems serving ≤1,000 people (capped at $9,000/person), 50% for 1,001-2,500 people ($7,000/person), and 30% for >2,500 people ($3,000/person). Projects addressing regionalization, drought resiliency, or environmental compliance may exceed these caps, and engineering studies for long-term water issues can receive up to 100% funding. The bill declares an emergency to expedite funding and requires projects to align with the state water plan.
SB 242 appropriates $2.5 million from the general fund to the South Dakota Department of Education for grants to "sparse school districts" (as defined in state law). The funds are distributed based on each district's 2026 fall enrollment, with grants used for facility improvements, educational technology, or instructional materials. Districts must use the funds by June 30, 2027, or the unspent money reverts to the state treasury. This bill directly affects rural or low-enrollment school districts eligible under state definitions.
SB 225 directs that 4% of the interest earnings from South Dakota's unclaimed property trust fund (without touching the principal) be distributed annually to school districts starting in fiscal year 2026. The funds will be apportioned to school districts based on their student enrollment, following the existing method used for other school funding. This adds a new source of revenue for school districts through the trust fund's interest, calculated using the fund's market value as of December 31 each year. The bill modifies existing statutes to implement this distribution, ensuring the funds are added to the general fund before being allocated to schools under current apportionment rules.
SB 217 appropriates $750,000 from South Dakota's general fund to create a fire management officer position within the Department of Public Safety. This funding specifically supports wildland fire operations east of the Missouri River, beginning June 30, 2026. The bill does not establish new policies but allocates resources for an existing operational need.
