Sales tax growth, drought and labor shortages shape SD’s budget outlook, economic advisers say

By: Makenzie Huber

Outlets: South Dakota Searchlight

Published: August 27, 2026

Words: 710

Last Updated: 2 weeks, 5 days ago

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The South Dakota Governor’s Office is entering the state’s next budget-writing season with a rosier revenue picture than feared earlier this year, but advisers warned Thursday of uncertainty around federal policy, drought and workforce shortages.

The Governor’s Council of Economic Advisors met by video conference to give state financial officials ground-level economic insight as they work to prepare the annual budget that Gov. Larry Rhoden will propose to lawmakers in …

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