The Real Cost

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The Real Cost

By: Gov. Larry Rhoden
September 18, 2026

Things are pretty good in South Dakota. Our economy remains one of the strongest in the nation. Our unemployment rate has been lowest in America for several years running. And our GDP growth routinely outpaces the rest of the country. But things aren't perfect - there's always ways we can improve. As I travel the state, I hear from South Dakotans who are frustrated by stubbornly high prices in too many aspects of their day-to-day lives, whether that be at the gas pump, the grocery store checkout, or when they receive their medical bill.

When government gets too involved in the economy, it tends to make things a lot more expensive. Businesses waste time, effort, and money trying to comply with regulations. Fortunately, South Dakota doesn't have that problem in the way other states do. We base our regulations in common sense, we cut red tape, and we have the 2^nd fewest overall regulations in the nation.

But continued challenges at the national level do impact South Dakotans, and we are doing what we can to address them.

For instance, gas prices have been far too high. Let me be clear: I recognize the need to keep America safe from the threat of a nuclear Iran. But I also want South Dakotans to be able to afford to fill up their tank. So I've been working with the Trump Administration to make ethanol more available, which gives people a more affordable option at the pump. Earlier this year, the Trump Administration granted South Dakota a waiver so that we can provide E-15 year-round. This keeps gas prices down and has the added benefit of giving corn farmers an additional market to sell their crops to!

Healthcare costs also continue to rise year after year. This past year, for the first time in South Dakota history, it cost state taxpayers more to cover Medicaid costs than to pay for K-12 education. Frankly, it should not be that way, but it's a direct result of the federal government kicking more and more of the cost of Medicaid down to the states. And we're working with the Trump Administration to address that, as well.

South Dakotans are also frustrated about rising property taxes - in fact, that's the most consistent affordability concern I hear about. I'm proud to say that we delivered the largest property tax cut in South Dakota history this year, and you'll see your taxes drop by a healthy margin next year. In counties where the local option property tax cut is implemented, the cut will be an average of 34%, which is meaningful relief. But even in places that don't opt into Senate Bill 96, the cut will still be around 15% statewide, so every homeowner should see a real impact.

These are the kinds of things that government should focus on. It isn't our job to tell you how to live your life or to tell business owners how they should do their jobs. It's our role to create a level playing field, then get out of the way, so that folks can enjoy their God-given rights to life, liberty, and the pursuit of happiness. And that is the approach I will continue to take.

I will continue to find ways to be part of the solution and help lower costs so that we can make life more affordable for the people of South Dakota. That is how we will keep our state strong, safe, and free.

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