Governor Rhoden on Tuition and Workforce Growth

I had the opportunity to sit down with South Dakota Governor Larry Rhoden during his visit to Dakota State University to discuss tuition changes and efforts to retain college graduates in the state.

When asked about reports that tuition will rise next academic year, the Governor explained that tuition had been frozen for the past four to five years due to strong state revenues. However, this year, budget constraints forced a shift.

“We froze tuition for four or five years,” he said, adding that “if you take the inflation rate over those five years, it has been pretty dramatic.” However, with the current economic climate, the state faced major budget challenges. “The governor’s office proposed $80 million in cuts,” he noted. Although the legislature later adjusted revenue projections and restored some funding, “we still ended up with $70 million in trust to pay agencies.” As a result, tuition will increase by approximately 2.9%, which the Governor described as “just the reality of the budget situation we were in this year.”

To help ease the financial burden, Rhoden highlighted expanded scholarship opportunities. Programs like the Freedom Scholarship and others targeted toward high-need fields have been established to support students with tuition costs.

On the topic of retaining South Dakota college graduates, Rhoden pointed to ongoing efforts through the state’s “Opportunity Tour” initiative, which aims to strengthen the local workforce and encourage students to stay after graduation.

“We’re focusing on presenting high-paying job opportunities right here in South Dakota,” he said. “Dakota State is a great example. Of the 500 students in their cybersecurity program, about 80% stayed in the state after graduation. In fact, when we account for out-of-state students who chose to stay, there’s a net gain.”

The Governor emphasized the state’s broader economic growth, especially in sectors beyond traditional agriculture, such as biofuels and value-added agricultural products, creating even more opportunities for young professionals.

“South Dakota has made significant progress over the past 10–20 years,” he noted. “We continue to look for ways to expand industries and provide pathways for graduates to build their futures here.”