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Govt Spending

State budget freezes and new revenue

Facing a tight budget year, Gov. Rhoden has proposed funding freezes for schools, state employees, and Medicaid-funded health programs. Democrats say they will seek new revenue streams in 2026 to counter those freezes, putting taxes, spending priorities, and program funding at the center of the session.

How should South Dakota respond to proposed freezes on schools, state employees, and Medicaid programs?

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Sources

Healy — https://www.sdnewswatch.org/2026-legislature-property-taxes-data-centers-sd
Amid a tight budget year, Democrats will be looking for new revenue streams in 2026 to counter the funding freezes Gov. Rhoden has proposed for schools, state employees and Medicaid-funded health programs, Healy said.
Positions on this issue  ·  liberal → conservative
  1. Raise new progressive revenue and increase funding for schools and Medicaid
  2. Find targeted new revenue to avoid freezes on schools and health programs
  3. Hold the line with freezes and only minor budget reallocations
  4. Keep freezes and cut elsewhere before considering any tax increases
  5. Deepen spending cuts and reject new taxes or revenue streams