South Dakota’s public university system has enjoyed a period of tuition freezes, with three consecutive years of no increases supported by the Legislature. However, this era is likely coming to an end, as the state’s budget faces challenges, including lower-than-anticipated revenue.
Despite no budget increase requests for the current year, Governor Kristi Noem’s proposed budget cuts include a $2 million reduction in operational funding and a $9 million cut to the building maintenance fund for the system.
Executive Director Nathan Lukkes, addressing the Senate Education Committee, highlighted that the state’s public university system has kept tuition rates low compared to surrounding states, offering students a competitive advantage.
Over the past five years, South Dakota’s total cost for an in-state undergraduate degree has increased by 5.2%, compared to neighboring states that saw increases of over 11%.
South Dakota’s efforts to minimize cost increases included trimming redundancies, cutting under-attended classes, and freezing tuition. Lukkes emphasized that while the state’s low tuition is a strong point, South Dakota lags behind other states in terms of income-based financial aid programs. To address this gap, the state increased funding for the Opportunity Scholarship and launched the Freedom Scholarship, both aimed at helping students from lower-income backgrounds.
Public university enrollment is on the rise, driven by efforts to recruit both in-state and out-of-state students. With a decline in the college-age population nationwide, Lukkes noted that universities will need to be more competitive to attract students.
The Board of Regents plans to closely monitor the fiscal year 2026 budget and engage in discussions regarding potential tuition and fee increases during its April meeting, while striving to minimize any increases for students.
