AGP Executive Report

State Government & Cybersecurity: South Dakota is seeing a steady drumbeat of cyberattacks, including incidents tied to government systems in Mitchell and Rapid City, with experts warning some attacks may be linked to Iran-backed hackers—another reminder that small businesses and local agencies need stronger defenses. Local Tax Policy: Clay County commissioners approved the first reading of a proposed local option sales tax to cut owner-occupied property taxes, setting up a second vote Aug. 25 after a 3-2 split. Livestock Oversight: The SD Brand Board will raise its livestock ownership inspection fee to $1.45 per head starting Oct. 1, citing rising personnel and operating costs. Education Funding: Rapid City Area Schools is putting a new bond referendum on the November ballot, targeting safer entrances, HVAC upgrades, and a South Park Elementary replacement. Medical Cannabis & Banking: A federal reclassification of medical marijuana to Schedule III could open doors for tax deductions and banking, but South Dakota officials say they still have unanswered questions. Consumer Protection & Big Tech: A federal trial began against Meta over alleged addictive features harming kids, with South Dakota among 29 states supporting the lawsuit. Agriculture Markets: Corn futures climbed after USDA trimmed crop condition ratings, while cattle futures also moved higher on stronger beef values. Energy & Costs: GasBuddy reports show diesel pricing varies widely across counties, with Codington’s low at $4.55 in the week ending Aug. 8. Community & Business Life: Deadwood’s Kool Deadwood Nites kicks off with expectations of record crowds, and St. Francis House in Sioux Falls is set to receive an $8,750 grant to expand therapy-based enrichment and financial literacy.

Meta Trial: New York AG Letitia James kicked off a bipartisan coalition’s trial against Meta, arguing addictive Facebook/Instagram design harms youth and that Meta collected data from kids under 13 without parental consent. National Debt: The U.S. debt is on track to top $40 trillion this week, earlier than expected, as borrowing accelerates amid tariff-driven revenue losses and rising bond yields—raising the stakes for the next debt-limit fight. South Dakota Cybersecurity: South Dakota rejected federal cybersecurity grants and is spending more than $7 million in state funds to respond to frequent breaches, including hundreds reported to the AG’s office. Agriculture & Food Prices: JPMorgan’s food-crisis warning is gaining traction as crop-tour data points to weaker yields in parts of the Midwest, including South Dakota, pushing corn/soy markets higher. Local Business & Infrastructure: Midco launched Midco Mobile in Sioux Falls with low-cost wireless plans, while Aberdeen is partnering on a Missouri River water plan to support long-term growth. Public Safety & Health: Researchers are testing whether bedbugs can carry MRSA, but experts stress it’s not proven in real-world settings. Defense Education: The South Dakota Board of Regents will seek $1 million for a Center for National Defense to expand national defense studies across state universities. Tech/Healthcare Skepticism: Rural residents in South Dakota are wary of AI as a healthcare fix, even as federal leaders promote AI tools for access.

Medical Cannabis Oversight: South Dakota lawmakers heard that a federal reclassification of medical marijuana could help the state’s industry claim business tax deductions and access banking, but officials say they still have “more questions than answers” about how the change will play out. Local Governance & Energy: Aberdeen City Council reviewed proposed guidelines for data centers, focusing on noise and energy needs as state lawmakers weigh “data center bill of rights” ideas. Education & Workforce: Sioux Falls Public Schools Education Foundation awarded $250 grants to 63 first-year teachers to buy classroom materials, while the Board of Regents advanced a plan for a $1 million Center for National Defense to feed South Dakota’s defense workforce. Agriculture Markets: Pro Farmer Crop Tour day one showed South Dakota corn under drought stress while Ohio scouts battled mud, as USDA trims ratings. Business & Risk: Gevo formally canceled its South Dakota jet fuel facility and moved the project to North Dakota. Public Health & Safety: A medical marijuana oversight meeting also raised concerns that inspections and penalties may be too harsh, with calls for mock inspections. Tourism & Economy: A letter urges Congress to reauthorize the Federal Legacy Restoration Fund to clear a backlog of deferred maintenance on South Dakota’s public lands. Bankruptcy: A Rapid City hotel operator filed Chapter 11 after city action tied to unsafe properties and delinquent utilities.

Workforce & Training: Southeast Technical College broke ground on the $18M James Abdnor Center for Advanced Manufacturing in Sioux Falls, aiming to expand capacity by 100+ students a year and feed South Dakota’s manufacturing pipeline. Tax Policy: Counties are adopting a new optional half-percent sales tax to shift property-tax burden to shoppers; opponents in Codington are pushing for a vote, raising concerns renters and lower-income households could pay more without direct relief. Higher Education: Dakota Wesleyan University announced a new provost and faculty promotions, including Dr. Michelle “Mickie” Metzinger as provost and leadership changes in nursing and accounting. State Budgeting: The South Dakota Board of Regents set FY28 budget priorities, including workforce-aligned investments such as a proposed Center for National Defense. Cybersecurity Costs: South Dakota rejected millions in federal cybersecurity grants and is spending $7M+ in state funds as reported breaches keep mounting, with the AG’s office tracking 1,062 incidents over five years. Health Education Expansion: Northern State University and Avera expanded their nursing partnership with a new Avera Simulation Center in NSU’s Business and Health Innovation Center. Energy & Prices: GasBuddy reports show spotty low prices across counties for E85, midgrade and diesel, underscoring continued fuel volatility. Local Business Impact: Early reports from the Sturgis Motorcycle Rally point to strong sales and lodging demand, with some businesses already booking for 2027. Legal/Politics: A court fight over South Dakota ballot-signature deadlines continues after a First Amendment challenge, with the state appealing higher.

South Dakota Politics & Economy: Sen. John Thune says year-round E15 likely needs compromises for small oil refiners, signaling a tough Senate path for the farm-bill language that would expand higher ethanol blends. Energy & Infrastructure: Thune also framed the midterms around pocketbook issues, with gas prices and everyday costs driving voter sentiment. Local Business & Community: South Dakota’s Southeast Technical College is tied to a major manufacturing push, with Thune and others highlighting workforce training as a jobs engine. Regulation & Courts: A new lawsuit argues NorthWestern’s merger shouldn’t be decided without Brad Molnar, adding to ongoing scrutiny of utility governance. Public Safety & Consumer Watch: Kentucky AG joined a coalition urging tougher federal penalties for ATM thefts, a move that could affect how states and businesses think about cash-access security. Ag & Rural Life: Pipestone County’s Ag Olympics crowned Windy Ridge Veterinary Clinic, underscoring how local ag groups keep community business networks active.

Ethanol policy in Washington: Sen. John Thune says year-round E15 likely won’t clear the Senate without compromises for small oil refiners, after the House advanced a year-round E15 path and the Senate farm bill version faces an uncertain vote. Local business & jobs: Democratic gubernatorial nominee Dan Ahlers argues South Dakota’s economic development dollars don’t do enough for small businesses, citing a Sioux Falls investment that he says produced low-wage jobs. Energy resilience push: A viewpoint piece challenges Gov. Larry Rhoden’s “resilience” spending and points to solar-plus-battery programs in Ann Arbor as a model for keeping power on during outages. Gas prices watch: GasBuddy data show South Dakota regular averaging $3.91 for the week ending Aug. 8, with county-by-county lows ranging from $3.54 (Minnehaha midgrade) to $3.57 (Aurora regular). Health care expansion: An interventional cardiology clinic opened in El Dorado and Camden, offering general and specialized heart care including peripheral artery disease. Politics & elections: Democrats in deep-red states have been dropping out to clear the way for independents, including South Dakota’s nominee, as the party tries to make Senate races more competitive.

State Tax Snapshot: South Dakota collected $100.8 million in motor vehicle license taxes in 2024, about 3.8% of the state’s $2.7 billion total tax take, per the U.S. Census Bureau. Energy & Cost of Living: GasBuddy data shows South Dakota’s regular gas average fell to $3.91 for the week ending Aug. 8, with the lowest reported regular price at $3.87 in Tripp County and premium lows hitting $4.39 in Brule County. Regulatory & Utilities: A new lawsuit argues NorthWestern’s merger shouldn’t be decided without Brad Molnar, while Molnar’s suspension fight in Montana centers on due process and workplace safety claims. Small Business Policy: Democratic gubernatorial nominee Dan Ahlers says South Dakota should redirect economic development dollars toward small businesses instead of large single-company incentives, arguing the current approach isn’t creating enough high-quality jobs. Workforce & Training: Southeast Technical College broke ground on an $18 million James Abdnor Center for Advanced Manufacturing in Sioux Falls, aiming to expand training for welders and machinists. Cybersecurity & Water: Reports say Iranian hackers targeted municipal water systems in parts of Minnesota and South Dakota, raising questions about local utility defenses. Fraud Watch: BBB Scam Tracker highlights ongoing online purchase scams and losses across South Dakota communities, underscoring the need for consumer vigilance.

Workforce & Training: Southeast Technical College broke ground on the $18 million James Abdnor Center for Advanced Manufacturing in Sioux Falls, aiming to open in fall 2028 and expand training for welders and machinists with state, federal and private funding. Energy & Costs: South Dakota gas prices stayed volatile but eased in the week ending Aug. 8, with the lowest reported regular at $3.54 in Minnehaha County and midgrade lows like $3.89 in Bon Homme County and $3.39 for E85 in Codington County. Health & Coverage: Medicare Advantage plan cutbacks are hitting South Dakota among other states, with KFF research showing 60%+ of enrollees facing terminated plans in some areas. Rural Governance: A viewpoint argues rural South Dakota’s future depends on county commissioners enforcing land-use ordinances tied to large-scale proposals. Fraud Watch: BBB Scam Tracker reports show Michigan cities like Eastpointe and Monroe tied for 80th in July scam reports, with online purchase scams driving reported losses. Public Safety & Community: Community Blood Bank reports a summer shortage of O-negative blood serving hospitals within about 150 miles of Sioux Falls. Local Economy Pulse: A Sturgis rally attendance and retail sales dip is being linked to consumer fatigue amid high gas prices.

Workforce & Training: Southeast Technical College broke ground on the $18 million James Abdnor Center for Advanced Manufacturing in Sioux Falls, aiming to open in fall 2028 and expand programs for welders and machinists, with funding including $6 million from the state and $6.5 million in federal HUD dollars. State Business Recognition: The South Dakota Retailers Association is taking nominations for Retailer of the Year, Restaurant of the Year, and Community Service awards, due Aug. 31. Economic Development Leadership: Build Dakota’s Administration Board welcomed Tenise Chapman and thanked outgoing member Scott Knuppe, as Gov. Larry Rhoden appointed Chapman to succeed him. Energy Policy: The U.S. Department of Energy canceled the National Interest Electric Transmission Corridors effort (NIETC), ending three proposed corridor designations that had raised landowner concerns. Agriculture Markets: USDA set July Class III milk at $15.52 per cwt., down 46 cents from June, while cattle and hog futures finished the week lower. Local Consumer Watch: GasBuddy reported South Dakota midgrade prices easing, including a lowest Custer County midgrade price of $4.09 in the week ending Aug. 8. Business Legal/Industry: A Texas supplier sued Summit Carbon Solutions over alleged unpaid orders for specialized carbon pipeline valves. Community & Events: Prairie Fest returns Aug. 22 at Good Earth State Park, with a focus on grassland education and family-friendly outdoor time.

Transportation & Infrastructure: The South Dakota Transportation Commission approved a nearly $290M bid to replace the Platte-Winner Bridge, with Ames Construction’s $289.99M price coming in about $40M above the state’s estimate. Public Safety & Policy: Seven Republican state attorneys general, including South Dakota AG Marty Jackley, urged the Surface Transportation Board to reject Union Pacific’s $85B Norfolk Southern deal, arguing it won’t deliver enough public competitive benefits. Local Government & Services: Sioux Falls is making pet licensing easier by partnering with DocuPet for online registration, while ending pet-license sales through local veterinary clinics. Education & Workforce: South Dakota’s public school teachers rank low nationally on pay, and a new discussion points to the mismatch between wages and local cost of living as a driver of shortages. Ag & Trade: South Dakota leaders at a Midwest agriculture export summit highlighted continued momentum for ethanol policy, including year-round E15 debate, while speakers stressed animal health as the foundation for export access. Community & Health: A Pine Ridge nonprofit is seeking storm-damage donations as it assesses needs and partners for relief. Business & Growth: SDSU Extension added a new livestock production and stewardship field specialist and is rolling out webinars and meetings for producers.

Bridge Funding & Construction: The South Dakota Transportation Commission approved Ames Construction’s $289.99 million bid to replace the Platte-Winner Bridge—about $40 million above the state estimate—while DOT says funding is in place, including a $65 million federal grant. Public Safety Tech: Attorney General Marty Jackley says South Dakota needs safeguards for license plate readers, including rules on proper use and when data should be deleted, as more than 300 Flock cameras operate statewide. State Economic Development: The Board of Economic Development approved nearly $481,199 in loans and grants, including $300,000 for Chemistry Distilling in Rapid City and $90,000 for Dakota Evergreen in De Smet, with expansion plans tied to new jobs. Agriculture & Rural Support: SDSU Extension added a new livestock production and stewardship specialist and is hosting webinars on end-of-life planning; farmers can also apply for Practical Farmers of Iowa cover-crop cost-share. Community Impact: Yankton School District’s summer grab-and-go program distributed 9,600+ bags and 68,046 meals, while One Spirit is seeking emergency donations after a Pine Ridge hailstorm damaged homes and property. Energy & Costs: GasBuddy reports show sharp local variation, including the lowest midgrade price in Minnehaha County at $3.48 for the week ending Aug. 8. Health Care Sector: SDHCA marked its 75th anniversary, highlighting long-term care’s role as a major employer and economic driver as South Dakota’s population ages.

State Economic Development: The South Dakota Board of Economic Development approved SD Works and Jobs Program funding for three projects, including a $300,000 loan to Chemistry Distilling in Rapid City and support for a De Smet clinic ownership transition, aiming to expand jobs and advanced manufacturing. Cyber & Infrastructure Resilience: Gov. Larry Rhoden announced $500,000 for South Dakota’s GRIT task force to strengthen statewide resilience planning, including GIS and communication tools. Local Government Tech Disruption: Mitchell says its network is fully operational again after a cybersecurity incident shut down parts of the city’s systems; officials didn’t confirm whether data was compromised. Youth Safety Lawsuit: South Dakota AG Marty Jackley says jury selection begins in a 33-state federal case against Meta over alleged COPPA violations and addictive design features for minors. Food Safety: South Dakota health officials are monitoring a cyclosporiasis outbreak, noting inspections and risk-reduction efforts at food establishments. Energy Costs: Diesel prices were reported higher statewide, with McCook County’s lowest at $4.69 for the week ending Aug. 8. Agriculture & Policy: Sen. John Thune and Rep. Dusty Johnson discussed trade and farm bill direction at a South Dakota Trade agriculture event. Weather Impact: A severe hailstorm hit the Pine Ridge Reservation, damaging school vehicles and delaying the start of school.

Cybersecurity & Resilience: Gov. Larry Rhoden announced $500,000 from the state Future Fund to bolster South Dakota’s resilience work through the Governor’s Resilience and Infrastructure Task Force, including new resident communication tools and expanded GIS planning. Local Government Tech: Mitchell’s city network is “fully operational” again after a cybersecurity incident shut down parts of its systems; officials say they’re not commenting on whether data was compromised. Youth Safety Lawsuit: Jury selection began in a South Dakota-backed federal case targeting Meta over alleged violations of youth privacy and addictive design features; opening statements are set for Aug. 18. Childcare Costs: South Dakota is responding to backlash over new Child Care Assistance payment rates that shifted from hourly to weekly, with families reporting sudden bill spikes. Ag Markets: Trade and agriculture leaders met in Sioux Falls to discuss global market opportunities and farm bill issues, with speakers pointing to the Indo-Pacific as a major growth market. Weather Impacts: A severe hailstorm hit the Pine Ridge Reservation, damaging homes and heavily wrecking school buses and vehicles, delaying the start of classes. Energy & Prices: GasBuddy reports show diesel and gasoline prices easing in parts of the state in the week ending Aug. 1, with several counties seeing their lowest reported regular or diesel rates. Education Governance: Voters will decide again whether the Oldham-Ramona-Rutland School District dissolves, with a re-vote required after a prior close election.

FDA Oversight: Thirteen food and cosmetics companies in South Dakota drew FDA scrutiny in Q2 2026, the most for any company type in the state; Dakota Splash, Inc. led with the highest number of citations. Fast Growth Watch: Inc. ranked seven Sioux Falls firms on its 2026 Fastest-Growing list, including Wild Oak Boutique (+356%), Phase 3 (+204%) and Silencer Central (+192%). Housing Finance: South Dakota Housing Development Authority issued a public notice outlining a Mortgage Credit Certificate program that would provide qualified homebuyers a federal tax credit tied to mortgage interest. Local Government & Public Process: Britton City Council discussed Zoom public-comment rules and read an anonymous “Concerned Taxpayers” letter, while also swearing in a new councilman. Workforce & Skills: The state’s Department of Labor and Regulation is hosting a free virtual Apprenticeship Knowledge Series on Aug. 20 for employers and partners building Registered Apprenticeship Programs. Energy & Infrastructure: Gov. Larry Rhoden awarded $500,000 to support his Governor’s Resilience and Infrastructure Task Force, funded through the Future Fund. Agriculture Impact: South Dakota cattle producers are still dealing with “gut-wrenching” losses tied to the July heat wave. Cybersecurity: A coordinated cyber operation has targeted municipal water systems across multiple states, with South Dakota among those reporting similar breaches.

Critical Infrastructure Funding: Gov. Larry Rhoden awarded $500,000 to support his Governor’s Resilience and Infrastructure Task Force, with new rules tightening how Future Fund money can be used and requiring recommendations through the Governor’s Office of Economic Development. Mining Education Push: The Trump administration’s $180M-plus mining education and workforce package includes $25M for South Dakota Mines to expand training for critical-minerals talent. Cybersecurity Disruption: Mitchell City Hall is still dealing with an unresolved cybersecurity incident that has left staff without computer access and postponed public meetings. Courts & Media: A judge ruled for the American Legion and media companies in a Mitchell baseball defamation case tied to a Legion letter. Housing Development: Habitat for Humanity broke ground on a second-of-its-kind affordable housing project in the Sioux Falls area. Workforce Pipeline: South Dakota’s Department of Labor and Regulation is hosting a free virtual Apprenticeship Knowledge Series for employers and RAP sponsors. Local Economy & Costs: Searchlight reports South Dakota’s Rushmore fireworks generated $2.35M in economic impact versus $2.8M in state spending, while also citing large publicity value. Agriculture: South Dakota cattle producers are coping with “gut-wrenching” losses after a July heat wave. Consumer Watch: BBB Scam Tracker data shows Wisconsin at 18th nationally for scam reports in July, with online purchase scams the most common. City Projects: Sioux Falls announced lane and sidewalk closures tied to ADA ramp and road work, with impacts expected through late October.

Rural Healthcare & Drug Pricing: A federal judge backed South Dakota’s drug discount law tied to the 340B program, rejecting challenges from major pharma firms and allowing rural providers to access discounts and mark up sales to help cover low Medicare/Medicaid reimbursement. Cybersecurity: A broader wave of cyberattacks targeting U.S. water and wastewater systems has now included South Dakota, raising alarms about critical infrastructure security and the need for stronger defenses. Higher Ed & Local Business: Midco is giving USD Athletics $1.5 million, with naming rights for the new Midco Club at the DakotaDome and upgrades aimed at boosting the game-day experience. Agriculture & Markets: Wheat prices are firming as Black Sea export disruptions continue, with Upper Midwest spring wheat trading above $6/bushel and analysts warning of more volatility. Energy & Costs: Insurify projects full-coverage auto insurance rates will rise again in 32 states by year-end, as repair and maintenance costs keep climbing. Tourism Finance: South Dakota’s Mount Rushmore fireworks cost more than the direct economic impact ($2.8M spent vs. $2.35M impact), though officials cite large media reach. Local Economy & Community: The Pierre Chamber hosted its Glow Golf Tournament at the Dunes Golf Course, highlighting how small events keep local businesses engaged. Public Safety: Rapid City police arrested two people after reckless firearm discharges in a neighborhood, with the investigation still active.