Zero-Based Budgeting and First Responder Funding Under the Core GRT Plan

Published: March 17 , 2025 | SEAL SD

Understanding Zero-Based Budgeting (ZBB)

Zero-Based Budgeting (ZBB) is a budgeting method where every expense must be justified from a zero base at the start of each budget cycle, rather than carrying over previous budgets. Unlike traditional budgeting, which often incrementally adjusts past budgets, ZBB requires all programs and activities to be evaluated for their necessity and efficiency, ensuring funds are allocated based on current needs and priorities.

• How ZBB Works: Each department or program starts with a budget of $0, and managers must justify every dollar requested by linking expenditures to specific goals, outcomes, and statutory responsibilities. For example, a program must demonstrate its effectiveness through data on costs, services provided, and measurable results.
• Purpose: ZBB ensures accountability by eliminating automatic funding for outdated or ineffective programs, focusing resources on high-priority areas like public safety, education, and infrastructure.
• Benefits in the GRT Plan: Under the Core GRT Plan, ZBB is paired with SD-DOGE oversight to review budget requests, preventing backlogs and ensuring efficient use of the $3.6 billion GRT revenue (Slide 3.2). This approach guarantees that funds are directed where they’re most needed, such as fully funding first responders.

ZBB’s focus on outcomes over tradition means South Dakota can cut waste—like the $428.5 million in proposed reductions from non-essential agencies, grants, and administrative costs—while prioritizing critical services (prior conversations).

Current State Budget for First Responders

South Dakota’s FY 2025 budget is $7.3 billion, with general funds at $2.39 billion. First responders, including police, fire services, and emergency medical services, are typically funded through a combination of general funds, federal grants, and local contributions. While exact figures for first responders aren’t specified in recent data, we can estimate based on national trends and South Dakota’s budget priorities.

• Estimated Current Funding: Nationally, police budgets often account for 5–10% of state and local general funds, with additional allocations for fire and EMS. For South Dakota, assuming 6% of the $2.39 billion general fund goes to police, that’s approximately $143.4 million. Fire and EMS might add another $50–$70 million, totaling ~$193.4–$213.4 million for first responders state-wide (derived from budget proportions in similar states).
• Rapid City Example: Rapid City’s current budget allocates $22.4 million for police and fire services, funded through property taxes and sales taxes (prior conversations). This is part of the city’s broader $116.1 million general fund.
• Challenges: Federal funding for first responders has faced cuts in recent years, with concerns about insufficient resources for interoperable communications, mental health responses, and disaster preparedness. Many agencies struggle with high vacancy rates and overtime costs, impacting effectiveness.

First Responder Funding Under the Core GRT Plan

The Core GRT Plan allocates $3.6 billion in revenue, fully replacing property taxes ($1.6B), sales taxes ($1.5B), and other fees ($0.5B), with a $95.8 million surplus (Slide 5). First responder funding, specifically for police, is explicitly prioritized under the GRT plan.

• Police Funding: The GRT plan allocates $215 million state-wide for police services, a significant increase from the estimated $143.4 million under the current budget (Slide 5). This boost ensures more officers, better training, and resources for mental health and community-based responses.
• Fire and EMS: While specific figures for fire and EMS aren’t detailed, the GRT plan’s $3.6 billion total funding includes allocations for all first responders. Assuming a proportional increase to police funding, fire and EMS could see $75–$85 million, totaling $290–$300 million for first responders—a 40–50% increase over the current estimate.
• Rapid City Breakdown: Rapid City’s $116.1 million GRT revenue allocates $22.4 million for police and fire, maintaining current levels while freeing up funds for other services like schools ($84M) due to the elimination of property taxes (prior conversations).
• ZBB Accountability: ZBB ensures these funds are used efficiently. SD-DOGE reviews budget requests to prevent waste, focusing on measurable outcomes like response times, crime reduction, and community safety. This avoids overfunding while addressing gaps, such as hiring full-time officers instead of relying on overtime (a concern noted in prior analyses of first responder funding).

Comparison: Current Budget vs. GRT Plan

Metric	Current Budget (Estimated)	Core GRT Plan
Police Funding	$143.4 million	$215 million
Fire & EMS Funding	$50–$70 million	$75–$85 million
Total First Responders	$193.4–$213.4 million	$290–$300 million
Rapid City Police/Fire	$22.4 million	$22.4 million
Funding Approach	Property/Sales Taxes	5% GRT, ZBB

• Increased Funding: The GRT plan provides a 40–50% increase in first responder funding state-wide, ensuring better resources and staffing.
• Stability in Rapid City: Local funding remains steady, but the broader tax relief ($1.6B state-wide) boosts community spending, benefiting first responders indirectly.
• Efficiency through ZBB: ZBB prevents wasteful spending, ensuring every dollar supports first responders effectively, unlike the current system where inefficiencies persist due to lack of rigorous review.

Conclusion

The Core GRT Plan, paired with Zero-Based Budgeting, not only eliminates property taxes but also enhances funding for first responders by 40–50%, from an estimated $193.4–$213.4 million to $290–$300 million state-wide. ZBB ensures these funds are used efficiently, focusing on outcomes like improved response times and community safety, while cutting $428.5 million in government waste. South Dakota’s first responders will be better equipped under the GRT plan, proving that tax freedom and public safety can thrive together.

📂 Learn More

• 🌄 Our Vision for South Dakota
  The future we’re building — bold, free, and family-first.
• 📊 End Property Tax: GRT Plan
  How the 5% Gross Receipts Tax will replace property taxes — and why it works.
• 📈 Revenue Verification
  Ensuring every dollar is accounted for — transparency you can trust.
• 🛡️ Safeguards to Protect Homes
  No tricks, no traps — just locked-in protections you can count on.
• 🕵️ SD-DOGE: Our Government Watchdog
  Efficiency, oversight, and a watchdog that works for the people.
• 👉 Get the Facts
  Will Prices Go Up?: Debunk myths about price increases under the GRT.
• 🚜 Family Farms & Ranches
  How the GRT protects and empowers South Dakota’s agricultural backbone.
• 👨‍👩‍👧‍👦 For Our Kids’ Future
  Building a legacy of freedom and opportunity for the next generation.
• 🏛️ South Dakota First
  Prioritizing our people, our values, and our future — always.
• 🆕 What’s New?
  Stay updated on the latest developments and announcements.

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