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South Dakota 2026 legislative session ends with changes on property taxes, more school lunch supports

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Lee Strubinger, of South Dakota Public Broadcasting, is shown in an image of February 2025, as he covers issues in the South Dakota Legislature.
Lee Strubinger, of South Dakota Public Broadcasting, is shown in an image of February 2025, as he covers issues in the South Dakota Legislature.

Lawmakers in the South Dakota Legislature have wrapped their work for the session, after final pieces of the state budget were finalized for the 2027 fiscal year.

The Legislature adjourned Thursday after being in session for 38 work days. Among some key legislation passed, some counties could select to have state sales taxes replace some property taxes, and there will be an expansion of state support for free and reduced school meals.

The lawmakers approved a $7.5 billion budget before gaveling out. As is often the case, the final action of the year came in setting the increases for public education, state employees and community health care services in the so-called Big Three.

Governor Larry Rhoden had proposed no raises for the Big Three, but the final decision was for 1.4 percent raises.

The fiscal year 2026-27 overall budget increases roughly 2 percent from the current fiscal year, and adds 26 more state employees,

Lawmakers return to Pierre on March 30 to consider any governor vetoes.


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Bret Hayworth is a native of Northwest Iowa and graduate of the University of Northern Iowa with nearly 30 years working as an award-winning journalist. He enjoys conversing with people to tell the stories about Siouxland that inform, entertain, and expand the mind, both daily in SPM newscasts and on the weekly show What's The Frequency.
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