Senate approves broader municipal holiday spending authority after amendment fails

Pierre, S.D. — The South Dakota Senate passed Senate Bill 127 on Feb. 11, which authorizes municipalities to expend funds to observe additional holidays beyond those currently specified in statute.

State Senator Jon Rolle explained the bill as intended to allow smaller communities to use municipal funds for decorations and observances they already undertake, noting the existing statute previously referenced a smaller list of holidays. The original bill ties eligible holidays to the list of state-recognized holidays in statute (for example: New Year's Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day, Thanksgiving, Christmas and Native American Day).

State Senator Jordan Howard offered Amendment 127A to limit the expansion to three holidays (Christmas, Thanksgiving and July Fourth), arguing taxpayer funds should be prioritized for holidays with broad cultural significance. Howard said the amendment would keep municipalities free to celebrate other holidays but would restrict what taxpayer dollars could cover. The amendment failed on a roll call, 14 yeas to 20 nays (1 excused).

Following the failed amendment, the Senate approved SB 127 in final passage by a roll call of 31 yeas, 3 nays and 1 excused. The president declared the bill passed and the title was deemed correct.

Why it matters: The bill extends explicit municipal authority to spend public funds on additional holidays; supporters argued it clarifies existing practice and aids small communities, while opponents sought to narrow taxpayer-funded celebrations.

Next steps: With passage in the Senate, the bill proceeds through the legislative process for final enactment.