HomeLatest NewsAdvocacyGovernor Kristi Noem Delivers Budget Address with a Focus on Education, State...

Governor Kristi Noem Delivers Budget Address with a Focus on Education, State Employees and Healthcare

On December 5, 2023, Governor Kristi Noem delivered the 2023 Budget Address, unveiling her budget proposal for the remainder of Fiscal Year 2024 and Fiscal Year 2025.

Governor Noem started off her speech on a positive note, emphasizing to lawmakers the importance of putting people first in South Dakota and her budget proposal reflects that. “It’s a budget that prioritizes people, not programs. It’s a budget that shows what can be done with smart, conservative fiscal policies. And it is a budget that focuses on our core responsibilities of state government.”

The speech was delivered to a joint session of the legislature, in addition to televised live to a statewide audience, the Governor told South Dakota, “Our budget must be focused on the core purposes of state government as defined by our state constitution. My budget proposal today focuses on strengthening education, building a stronger workforce, keeping people healthy, investing in long term infrastructure, and avoiding debt so we can preserve our low tax, low regulatory environment that we are blessed with today.”

What does this mean for healthcare? First, the Governor is proposing a 4% increase for providers, with the Governor stating, “This increase doesn’t pick winners and losers. Nursing homes will get 4%. Community service providers will get 4%. Developmental disability providers will also get 4%.” The Governor acknowledged potential debates that may take place during the budgeting process but reminded policymakers that decisions were made last year to ensure all groups were covered. “Last year we made those types of targeted adjustments and worked hard to make sure they were covering the needs of each specialized group. This year, an equal increase is appropriate because inflation increases are hitting all providers.”

The Governor also touched on Medicaid Expansion, telling lawmakers state government will ensure that this program is funded responsibly and efficiently.  Last year the legislature provided $11.4 million dollars for Medicaid expansion, a portion of the full amount.  For fiscal year 2025 the Governor is proposing $18.3 million dollars to continue to cover costs. As outlined in the Governor’s speech, the program will need “$64 million by 2026” to be fully funded, Governor Noem stating, “we will continue to address these funding issues in years to come.”

  • To take a closer look at the Governor’s budget address, click here.
  • FY 25 budget documents, visit this page.
  • To watch the archived televised version of the Governor’s Budget Address visit SDPB’s webpage here.

The 99th Legislative session will begin January 9 with the Governor’s State of the State Address. SDAHO’s advocacy team will be in Pierre for the entire run of the session providing information to policy makers and being a voice for our members and the healthcare community. For the latest information on bills impacting the healthcare community, visit the SDAHO advocacy page, there you will find our Bill Tracker, to help navigate this years healthcare legislation.

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