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HomeLatest NewsState NewsGovernor Noem's Fiscal Year 2021 Budget Address Summary

Governor Noem’s Fiscal Year 2021 Budget Address Summary

Gov. Noem FY2021 Budget Address: No Inflationary Update to Medicaid Providers, Schools, and State Employees

Gov. Kristi Noem presented her second budget address to the South Dakota Legislature Tuesday Dec. 3. The fiscal year (FY) 2021 budget recommendations will fund necessary state government services and special appropriations for the fiscal period beginning July 1, 2020 and ending June 30, 2021. The governor assured South Dakota’s financial commitment to fiscal responsibility and conservative management, implementing efficiencies within state agencies, and the transparency announcement of Open SD Budget.

Gov. Noem depicted assumptions to the South Dakota economy hit by widespread flooding and natural disasters, with low inflation and uncertain outlook with the agriculture economy. The revised ongoing receipts for FY2020 were $5.9M lower than adopted in February.  In addition, the governor revealed the $30M in tax cuts to South Dakotans from the Federal 2016 Internet Tax Freedom Forever Act.

The $1.72 billion general budget proposal includes FY2020 mid-year adjustments of $18.5M for one- time funds for:

  • $5.1M State Radio Infrastructure and System Upgrade
  • $5.0M Connect South Dakota Initiative- broadband installation
  • $5.0M New USD Health Science Center
  • $396k DSU Cyber Security Incubator

The FY2021 budget year includes $22.7 million in general state spending for the upcoming year. High level key takeaways for providers include:

  • No inflationary update for Medicaid Providers, Education, or State Employees
  • $3.7M Mandatory Inflationary Update for FQHCs, Rural Health Clinics, Prescription Drugs
  • $3.7M Intensive Meth Treatment and Enforcement
  • $1.1M Assisted Living Rate Tiers
  • $870k Rural Recruitment Assistance for Healthcare Workforce
  • $100k Family Residency

Gov. Noem’s Budget recommendation slides can be found here. ​


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