SD Veterans Affairs proposes suspending VSO salary supplement, eliminating headstone-setting payment in FY26 request

The South Dakota Department of Veterans Affairs told a legislative committee it is proposing FY26 budget reductions that would suspend the state salary supplement for county and tribal veteran service officers and eliminate the state’s headstone-setting payment for headstone placement in private cemeteries.

Aaron Pollard, deputy secretary for the Department of Veterans Affairs, presented the department’s FY26 requests and said the overall departmental ask includes a net increase in general funds offset by decreases in federal authority and small adjustments to other funds. “The veteran population in South Dakota is approximately 62,000,” Pollard said, noting the department estimates its reach—including spouses—at “approximately 220 to 250,000 South Dakotans.”

Why it matters: county and tribal veteran service officers (VSOs) are the local touchpoint for veterans seeking benefits. The department told the committee the proposed suspension of the salary supplement would lower state support for those locally employed VSOs and that eliminating the headstone-setting payment would remove the state contribution to placement in private cemeteries.

Details of the proposal and statutory framework The department said the proposed reduction would suspend roughly $191,812 in general funds tied to the salary supplement and eliminate about $52,700 in general funds tied to the headstone-setting payment; the department said most of that $52,700 is for headstone placement rather than burial allowances, and that burial allowances have been rarely paid in recent years.

Pollard explained the salary supplement is authorized under state codified law and is conditional on counties meeting a locally funded minimum salary for their VSO posts. He described the supplement as a state payment to counties or tribes that qualify under those statutory minimums. During questioning, Pollard identified the statutory reference the committee could consult as “33 a 1 dash 32” (as cited in the presentation materials).

Committee members pressed the department on mechanics and potential consequences. Vice Chair Derby asked whether counties or tribes would have to pick up the cost if the supplement were suspended; Pollard said state law still requires each county to have a county veteran service officer, so counties could not simply eliminate the position. Senator Zickman and other members highlighted concerns that the state mandates the positions but may be reducing support, noting the potential for counties to be forced to absorb the cost or reduce services.

Headstone-setting payment Pollard told members the state pays up to $200 toward placement of a government‑furnished headstone in a private cemetery; he said the federal government supplies the headstone itself and that headstone placement and perpetual maintenance are covered at state veteran cemeteries. He noted the state payment is typically made to the contractor who sets the headstone, not directly to families. When asked whether families would see bills if the state payment were cut, Pollard said, “At surface, I would say yes,” but added contractors’ pricing decisions could vary.

What was not decided Committee members discussed the policy implications but did not vote on the proposals during the briefing. Pollard described the reductions as areas the department identified where cuts could be made without undermining core service delivery; the committee asked for additional detail on county impacts, staffing levels, and usage history for the burial and headstone payments.

Ending Legislators asked the department to provide follow-up material on county-level staffing, historic payment counts for burial allowances and headstone payments, and the statutory citations that govern the salary supplement. The committee paused further action pending budget deliberations.