State employees and education organizations are hopeful with Governor Kristi Noem’s first budget presentation.
In it, she calls for a point two percent increase in funding to both entities from what former Governor Dennis Daugaard recommended.
Governor Noem wants a market adjustment increase in compensation for all permanent state employees of 2.5 percent.
She’s also proposing ongoing general funds to pay for employee health insurance premiums. Last year, then-Governor Daugaard called for state employees to pick up the tab on premiums, which would have also required a statute change.
Eric Ollila is the executive director of the South Dakota State Employees Organization.
He says they’re pleased to see the governor’s nod to the contribution of state employees.
“We know here at the capitol that state employees are involved in every aspect of the state,” Ollila says. “K-12, healthcare, all that stuff, state employees facility that. It was nice to get that acknowledgement from Governor Noem. I can tell you the state employees that have already contacted me are happy with the proposal.”
Ollila says he wants state workers to walk away with at least the 2.5 percent market adjustment increase for permanent employees, as well as the ongoing 1.7 million dollars to eliminate the need for an employee health insurance premium.
Education funding is receiving a similar bump up in pay for state aid to K-12 and technical institutes.
Mary McCorkle is president of the South Dakota Education Association. She says it’s encouraging to see the governor’s 2.5 percent increase for education.
“It means more support for our students,” McCorkle says. “It means retaining educators, it means enabling school districts to provide the things our students need. So, it’s good for our kids.”
Now that lawmakers know the governor’s budget, appropriators will begin crafting a budget that meets both Noem’s and the legislature’s priorities. Lawmakers and the governor’s office will release anticipated revenue forecasts in the coming weeks and revise the state’s budget from there.