Some lawmakers and health advocates worry that Noem’s budget cuts could harm essential services for South Dakotans in need

Noem argues that these cuts are necessary because the departments have been returning money due to lower-than-expected usage. But some lawmakers and health advocates are raising red flags. They’re concerned that these cuts could hurt Medicaid expansion and other vital services for South Dakotans who really need help.
The slow enrollment in Medicaid expansion is also a hot topic. Voters approved this expansion in 2022, but the numbers haven’t met expectations. Noem’s budget predicts only about 32,000 people will enroll, which is way less than what was planned. This has led to proposals to cut state jobs tied to these programs.
Advocates like Ben Hanson from the American Cancer Society are worried that cutting funding now could be a mistake. He believes the state hasn’t done enough to promote Medicaid expansion, leaving many people unaware of their options. There’s a call for better outreach, especially to young adults who often lack insurance.
The Community HealthCare Association of the Dakotas is also pushing for a marketing campaign to help enroll more people. They want to make the process easier and more efficient, especially for those who might qualify for multiple programs.
Despite the slow enrollment, the state’s Medicaid costs are rising. Noem’s budget includes a significant increase in spending for Medicaid, which has lawmakers like Rep. Tony Venhuizen concerned about the potential for deficits if the cuts are too deep.
Venhuizen is also looking to propose a constitutional amendment that would allow the Legislature to cut Medicaid expansion if the federal government doesn’t keep its funding promises. This is a big deal, especially since voters already approved a measure last year that could impose work requirements on Medicaid enrollees.
Some lawmakers, like Rep. Linda Duba, are calling it irresponsible to cut funding for social services while pushing for new spending in other areas. Noem’s budget includes funds for education savings accounts and a new prison, which has raised eyebrows among those who feel social services should be prioritized.
In addition to the Medicaid cuts, Noem is also proposing reductions to other programs, like Temporary Aid for Needy Families (TANF) and the indigent medication program. These cuts could leave many low-income families and individuals without the support they need.
Overall, it’s a tense time in South Dakota as lawmakers prepare to discuss these budget proposals. The outcome could have a significant impact on many residents who rely on these essential services. Everyone’s watching closely to see how this unfolds.