An eager reader responds to Wednesday’s post on the $3.14 billion in federal funding that Governor Larry Rhoden includes in his $7.44-billion budget proposal by asking how South Dakota’s dependency on Uncle Sam for 42.2% of its budget compares to bordering states.
The National Association of State Budget Officers provides an answer in this report on state expenditures for Fiscal Years 2022–2024.
Nationwide, in FY 2024, federal expenditures made up 34.2% of state budgets, down from a covid peak of 40.8% in FY 2021.
In FY2024, NASBO estimates the federal share of South Dakota’s budget was 42.97%, the fourth-highest in the nation, behind Louisiana, Mississippi, and Indiana. We and the other three leaders in federal dependency all have Republican governors and Republican legislative majorities ranging from 66% in Mississippi to 90% in South Dakota.
Our neighbors depended on Uncle Sam for less of their budgets:
- Montana: 40.29%
- Minnesota: 32.56%
- North Dakota: 31.29%
- Iowa: 30.93%
- Nebraska: 29.91%
- Wyoming (lowest in the nation!): 18.53%
In the 25 states with federal budget dependency higher than the national average, legislatures have an average Republican membership of 60%. In the 25 states with federal budget dependency lower than the national average, legislatures have an average Republican membership of 52%.
In his budget address Tuesday, Governor Rhoden bragged that South Dakota has “the second most competitive tax system in the nation” and reminded us that we have no personal or corporate income tax. But we keep our taxes low by depending on Uncle Sam to do more of the heavy lifting in our state budget than all but three other states.
Elect Republicans, get more federal dependency. Funny—that’s not what Republicans campaign on.