What The $10 Million Budget Cuts Mean For Sioux Falls Residents

In 2025, the quest to cut government spending across America has impacted everything from federal programs to local projects.

Now, Sioux Falls is launching its own budget 'belt-tightening'.

Crunching Numbers

In advance of Mayor Paul TenHaken’s 2026 proposed budget presentation next week, the city is outlining $8 to $10 million of cuts over the next three years, as mandated by South Dakota Senate Bill 216, which caps property tax growth for municipalities, counties, and school districts, resulting in a permanent revenue reduction from property taxes.

What's Being Cut

The City has identified $6 million of permanent reductions for the 2026 proposed budget, including:

General Government and Operations

Part-time and consulting alignment
Full-time workforce (3 FTEs eliminated: Mayor’s Office (1), Attorney’s Office (1), and Communications (1))
Reduction of funding for subsidy agreements

Culture and Recreation

Library hours of service reduction for Sioux Falls and Brandon locations (up to two hours per day)
Outdoor pool closures after the first weekend in August
Reimagine Midco Aquatics concession offerings
Evolve the playground recreation program to incorporate the mobile recreation unit
Phased closure of non-refrigerated outdoor ice rinks

Streets, Planning and Development

Alignment of de-icing materials
Phasing in City-owned motor graders
Extend equipment replacement cycles and reduce equipment rentals
Credit card fees shifting to customers who choose to use this form of payment

Public Safety and Health

Public Health Grants expired (3 public health full-time employees reduced)
Health clinic collaboration with community partners and streamlining citywide code enforcement
Police and Fire overtime reduction strategies
Police tracking team and grant-funded coordinator eliminated; training reduced
Fire program supplies and training reduced

Mayor TenHaken will present the full proposed 2026 budget on July 24 at 3:00 PM at Carnegie Town Hall on West 10th Street.

The Sioux Falls City Council will consider the proposed 2026 budget in September. If these recalibrations and reductions are approved through the budget, they will take effect throughout 2026.

Get our free mobile app

LOOK: Every Kid Wanted to Go to These Famous TV and Movie Locations

Before Google Earth and instant streaming, your imagination had to do the traveling, and TV and movies were your passport. From pirate coves to suburban streets, these were the places every kid dreamed of visiting.

Gallery Credit: Stephen Lenz

LOOK: These TV Guide Covers Will Take You Back to a Golden Age of Television

From "Who Shot J.R.?" to the tearful goodbye on the final episode of M*A*S*H, TV Guide — and those unforgettable covers — were once a treasured part of every TV lover’s routine.

Gallery Credit: Stephen Lenz

If You Grew Up in the '70s and '80s, These Foods Were Super Fancy

From Babybels to Toblerone chocolate, take a nostalgic bite out of these 'fancy' childhood foods that made us feel way more elegant than we really were.

Gallery Credit: Stephen Lenz