Noem will propose 4 percent increases for educators, state employees, care providers

Governor to deliver annual budget address to Legislature Tuesday

Gov. Kristi Noem wants 4 percent wage increases for South Dakota’s public educators, state employees, and nursing homes in the state’s next budget.

The second-term Republican governor, in her annual budget address to the state Legislature Tuesday, will unveil a multi-billion spending proposal that marks the last of the state’s American Rescue Plan Act funds while also investing in basic government operations, including inflationary increases for state workers, the public school system, and its Medicaid partners.

And though Noem cautioned lawmakers earlier this fall to brace for a somewhat lean budget year as federal stimulus funds dry up, the cost of living adjustment she’ll propose this week exceeds the expectations of many in Pierre.

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“We’re dealing with an environment where every family is dealing with inflation,” Noem said in an exclusive interview with The Dakota Scout Monday evening. “I don’t think legislators are expecting 4 percent, but I think it shows that we recognize inflation costs and that those big three commitments … are the responsibility of state government.”

Beyond inflationary adjustments, which are paid for using ongoing revenues, the governor will also propose using about $250 million in one-time dollars to advance a pair of prison projects the Department of Corrections has in the works on both ends of the state.