This memorandum examines state higher education funding in South Dakota for fiscal year (FY) 1996, describing five state-funded grant programs approved by the state legislature and funded for FY 1996. These include: (1) the need-based Student Incentive Grant program, which provides up to $600 per year to students attending public institutions in the state; (2) the need-based Tuition Equalization Grant program, which provides up to $250 per year to students attending private institutions in the state; (3) the newly instituted Tribal Institutions Education Cost Equalization Grant program, which provides grants on a per credit hour basis to eligible non-Indian South Dakota students attending one of five Indian colleges; (4) the Mickelson Scholars program, which provides full tuition and fees scholarships to academically accomplished students to encourage them to attend public institutions within the state; and (5) veterinary student grants, which provide eligible South Dakota veterinary students with grants to cover the difference between the resident and non-resident tuition at out-of-state universities, as the state offers no veterinary medicine programs. The memorandum concludes by discussing expenditures on student aid in South Dakota. An appendix provides a chart comparing state funding of higher education across states. (MDM)