PIERRE, S.D. – South Dakota lawmakers passed the state’s main budget bill Thursday after conservatives made South Dakota Public Broadcasting a flashpoint in a broader argument over spending growth and the size of state government.

House Bill 1326 passed the House 50-17 and the Senate 25-9. Before final Senate passage, senators tabled Amendment 1326B. The “G-bill,” as it is called, was delivered to Gov. Larry Rhoden on Thursday.

The bill funds state government for fiscal year 2027, which begins July 1. The enrolled bill includes $296,053 in new general fund support for South Dakota Public Broadcasting to replace federal money previously received from the Corporation for Public Broadcasting.

Freedom Caucus members led the opposition against the budget bill, joined by a few other conservative lawmakers, including Sen. Taffy Howard, R-Rapid City. Budget leaders, Democrats, and other Republicans said the bill still had to fund schools, health care, corrections, public safety, and other core services. 

The SDPB fight also followed last year’s failed effort by then-Gov. Kristi Noem to cut the network. In this year’s debate, Sen. John Carley, R-Piedmont, said that earlier proposal would have reduced SDPB funding to about $1.9 million.

SDPB became the symbolic fight

“It removes the $296,000 of increased money for South Dakota public broadcasting,” Sen. John Carley, R-Piedmont, said. “It does not strip away any of their existing funding.” The Senate later tabled his amendment.

Carley also said NPR and PBS programming carried on SDPB was biased, arguing neither outlet presented “a fair, accurate, or unbiased portrayal of current events” to taxpayers.

In the House, Rep. Dylan Jordan, R-Clear Lake, tried a different route. He sought a separate vote on SDPB funding instead of leaving it inside the larger budget bill. That effort failed, and the bill moved ahead intact.

Budget backers said the bill funds core obligations

“This is a balanced budget for the 137th year in a row,” Rep. Mike Derby, R-Rapid City, said. “This is a budget that invests in the people of South Dakota where they need it most.”

Derby also said the bill includes a 1.4 percent increase for K-12 education and technical colleges, a 1.4 percent increase for community-based providers, and a 1.4 percent increase for state employees.

The enrolled bill also includes support for critical access hospitals and federally qualified health centers, as well as higher corrections appropriations.

In the Senate, Sen. Mark Lapka, R-Leola, defended the bill on final passage.

Opponents said spending keeps growing

“The state budget has grown from roughly $4.3 billion to about $7.3 billion over the last decade,” Rep. Josephine Garcia, R-Watertown, said. “That level of growth should cause this body to pause.”

“All too often the ending is the same,” Sen. Taffy Howard, R-Rapid City, said. “We leave here today expanding government at taxpayers’ expense.”

Democrats backed the bill

“It funds our schools, it strengthens health care, it supports public safety, and it invests in the future of our state,” Rep. Erin Healy, D-Sioux Falls, said.

Healy also thanked appropriators, including Rep. Erik Muckey, D-Sioux Falls, and thanked SDPB for its role in making government more accountable and transparent.

What happens next

HB 1326 now goes to Rhoden for his consideration. If he signs it, the measure becomes the state’s operating budget for the fiscal year that starts July 1.