District 7 and 8 Lawmakers Discuss Budget Increases and New Industry Incentives at Legislative Coffee

Northeast Radio SD News – South Dakota - State legislators from Districts 7 and 8 gathered on Saturday for a public forum to update constituents on key issues as the 2026 Legislative Session moves toward its final weeks. The “Legislative Coffee” event featured a detailed look at the state budget, the debate over legal gender definitions, and the potential entry of hyper-scale data centers into the South Dakota economy.

Funding “The Big Three”

A primary focus of the discussion was the annual funding adjustments for K-12 education, state employees, and Medicaid providers—collectively known as “The Big Three.”

·         Current Proposals: Lawmakers noted that while a 1% increase is currently the baseline, discussions continue to determine if that figure can be increased.

·         Economic Context: One representative characterized a 1% increase as a “failure,” pointing to the fact that South Dakota is currently experiencing negative sales tax growth for only the third time in 30 years.

·         Ongoing Negotiations: Legislators expressed hope that ongoing scrutiny of the budget might reveal enough savings to provide a higher percentage increase before the Session concludes.

Codifying Gender Definitions

Lawmakers addressed House Bill 1046, a measure intended to establish legal definitions for “man,” "woman,” and “sex” within state law.

·         Necessity Questioned: Several legislators described the bill as addressing a “non-existent problem,” with one member categorizing it as an “unneeded bill” despite its passage through the House.

·         Legislative Sentiment: While the bill received support on the floor, some representatives admitted they voted for it reluctantly, suggesting the timing was influenced by it being an election year.

·         Constitutional Perspectives: One lawmaker emphasized that while he recognizes traditional biological definitions, he maintains a personal stance of not judging how individuals choose to perceive themselves.

Hyper-Scale Data Centers and Economic Growth

The forum also touched on legislative efforts to attract “hyper-scale” data centers to the state. These facilities, often valued in the billions of dollars, would require specific tax and utility frameworks.

·         Tax Revenue Clarification: Legislators pushed back against claims that these centers would not generate tax revenue, noting that a single project could generate over $300 million in state and local taxes over ten years.

·         Ratepayer Protections: A key priority for the delegation is ensuring that new industrial developments do not increase costs for current electric and water utility customers.

·         Late-Mover Advantage: By being the 42nd state to consider these specific incentives, lawmakers argued that South Dakota can implement “consumer protections” based on the experiences of other states to ensure the best outcome for residents.

Compiled from reports authored by Jay Roe, Brookings Radio News Director