Gov. Kristi Noem’s $7.3 billion proposed fiscal year 2025 budget includes four percent cost of living adjustments for state employees, education and nursing home providers.
Advocates for each of those industries—known as the Big Three—are applauding the starting point.
State law requires legislators to increase funding to the Big Three at inflation or three percent. Republican Gov. Noem wants more.
“We have to take care of our people first. We must address our responsibilities first before we consider special interest projects,” Noem said in her address on Tuesday.
The decision on Big Three increases is one of the final big budget negotiations every year. Last session lawmakers gave seven percent increases—two percent above Noem’s recommendation.
They also gave targeted raises to certain employees.
Eric Ollila, executive director of South Dakota State Employees Organization, thanks Noem for setting the framework for state employees at 4 percent.
“What they needed coming into this next year was certainty that the state and legislature and governor is going to take care of them—be there for them,” Ollila said. “I only heard positive things about the four percent raise proposal from state employees.”
SDPB employees are state employees and subject to cost-of-living increases.
Nursing home officials are also satisfied with Noem’s proposal. Mark Deak, with South Dakota Health Care Association, said they’re very happy with the increases long-term care received last year.
“We had an average increase of over 25 percent. Of course, that was much needed and that went a long way to help,” Deak said. “I really see her proposal here, this year, as just another step in the right direction.”
Four percent is also welcome news for South Dakota’s public schools.
That’s according to Loren Paul, the president of South Dakota Education Association.
“SDEA’s top priority continues to be making sure the schools have necessary resources to provide our students with the great education they deserve,” Paul said. “That includes having qualified teachers in every classroom.”
Paul said that starts with necessary funding to keep educators in the classroom.
Noem chided school districts for teacher pay remaining toward the bottom in the nation.
“Since I took office, and with this 4% proposal, we will have increased state funding for our K-12 schools by 26.3%. But actual average teacher salaries have lagged far behind,” Noem said. “Why should we continue to send money to school administrators and school boards when they do not pass it along to teachers?"
Paul said salary data lags by a year and a half. He said the state is only just now understanding how past funding increases in prior years are affecting teacher salaries.
As for South Dakota Democrats, they wanted to see more from the Republican governor’s proposed budget address pressing issues in the state.
Sen. Reynold Nesiba is the leader of Democrats in the state Senate. The Sioux Falls lawmaker said both the governor and Democrats share a commitment to helping kids and grandkids.
However, he said kids in schools are being denied food for unpaid balances.
“We have employees in our school districts that are being told that they have to turn kids away. Hungry kids struggle to learn. So, we should address that. For less than $40 million a year we could provide breakfast and lunch for all kids,” Nesiba said. “We can create opportunity, we can create freedom and we can cut through a lot of red tape to South Dakota families who’re having to fill out [forms] to qualify for those various programs. Let’s feed the kids.”
Nesiba said Democrats want to see a five percent raise for the Big Three.
Republicans hold a supermajority in both chambers.
Rep. Linda Duba, D-Sioux Falls, sits on the committee that crafts the state budget.
She said while four percent is great, it’s just slightly ahead of inflation. Duba said lawmakers must consider other costs schools face.
“We still have a need to raise the salaries and also pay those individuals who are janitors, school bus drivers, education assistants, food service workers, all of those people count as well. Not to mention the rising cost of supplies and the rising costs of supplies and food that we leverage in our school districts every day. Let’s be mindful of that, instead of saying this all goes to teacher pay—because that is not necessarily true.”
Duba also said she wishes Noem talked about addressing the state’s child care crisis, as well.
Lawmakers gavel in Jan. 9 for regularly scheduled legislative session. Then, state lawmakers will take the governor’s budget recommendation and craft their own for Noem’s approval.
