[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6385959,"mediaKeyId","2118760-f624d4d3f29a5bf224ab719488c503b7","parentId",2118760,"title","State budget office: revenue growth slowing, recommends limited use of reserves to finish prison funding","audioSeconds",3716,"startMs",664000,"endMs",4380000,"viewUrl","/Search/View?dp=1&key=2118760-f624d4d3f29a5bf224ab719488c503b7&start=664&end=4380","thumbnailUrl","https://assets.pipeline.soar.com/2118760-f624d4d3f29a5bf224ab719488c503b7/thumbnail_664000.jpg","articleUrl","/articles/6385959/South-Dakota/State-budget-office-revenue-growth-slowing-recommends-limited-use-of-reserves-to-finish-prison-funding","mediaUrl","https://secure.pipeline.soar.com/6385959-fe879eb277d9c1ced3a1e6533e49c5e5/orig.mp4?Expires=1771177140&Signature=h6OcrDwApztmGvceSIKJDfMJuHhquTGmQsiwDrn18nkXFaNN8DyarfoBpQFTOrrg3k40h6p5MSZv-6YUTrYQZFx4qRs5W4geLnIab4lraCFj2kIxCYcp32ED0S5vEmBMePMnZ6Zi7vgFiJ6rkcrHNVEBusdjBfSLF-RlHwsUR7dVIAm3GN-lhhimyAsvXpr9-P~lKqkDUe99me2l8s6UXZdt~k-hAqh0WC~IGUSLwu1QRIVO9jDapDJXsQWIrBk6MGfxsP4pG~~DC0YZ7xqfOgYa5k6JPlGl9QjFXCt0etYprmqF2Mdgc442frqon-dhvh6S8eT41PqderMfi~OhEw__&Key-Pair-Id=KUT5TJCACFTXG","author","State of South Dakota","date","2025-01-15T00:00:00Z","article","Bureau of Finance and Management Commissioner Jim Terwilliger told the Joint Appropriations Committee on a midwinter briefing that South Dakota's revenue growth is easing back toward long-term averages and that the governor's recommended fiscal 2026 budget balances a number of one-time receipts, midyear adjustments and ongoing pressures.

Terwilliger said the administration's updated numbers include a net $175,300,000 revenue revision for the current year driven largely by larger-than-expected unclaimed property receipts and higher interest earnings, while ongoing sources were revised down roughly $26,000,000. \"We're experiencing that to some extent,\" Terwilliger said of the return to normal growth, adding the presentation was intended to be high level because agencies will present more detail in upcoming hearings.

The budget office highlighted several items that shaped the recommendation. Unclaimed property remittances were described as volatile; the administration budgeted a conservative ongoing assumption of $62,000,000 for FY2026 but reported a net unclaimed-property inflow this year that the team estimated at about $229,000,000 when receipts and claims are netted. Terwilliger cautioned that much of that money is one-time and uncertain because rightful owners can still claim assets.

Why it matters: the administration proposes using some one-time resources while protecting reserves. The budget recommendation assumes a $44,300,000 increase in ongoing resources for FY2026 (after growing from a lowered base), and it includes a proposal to use $34,000,000 from the state's combined rainy-day funds toward finishing the men's correctional facility project rather than issuing new bonds.

Key budget details and assumptions

- Prison financing: The men's correctional facility is budgeted at $825,000,000 total. Terwilliger said existing cash plus projected interest in the incarceration construction fund and a $182,000,000 cash transfer would, together with $76,000,000 of projected interest earnings, cover the remaining financing so the state would avoid issuing new long-term debt. The administration argued avoiding borrowing could save the state hundreds of millions in interest compared with issuing bonds on the full amount.

- Medicaid/FMAP: Terwilliger noted the state's federal medical assistance percentage (FMAP) share has shifted, increasing the state share of Medicaid costs; the recommended budget fully funds the scheduled phase-out of the enhanced FMAP and includes a net $85,000,000 in mandatory changes tied to Medicaid, CHIP and provider inflation.

- Midyear adjustments and reductions: The staff identified $105,000,000 in midyear general bill reductions (largely utilization adjustments in DSS and DHS and revisions to the 5% FMAP set-aside from prior years), offset by roughly $5.7 million of general bill increases and transfers including $182,000,000 proposed from the incarceration construction fund and $5,000,000 for IT modernization.

- Emergency and special appropriations: The recommended package lists a number of one-time appropriations requiring separate hearings, including a $53,700,000 bond payoff (to free about $5,000,000 annually in debt service), $13,000,000 for Richmond Dam repair (see separate presentation by School and Public Lands), $10,000,000 in school safety grants, and backfills for emergency/disaster and fire suppression funds.

- Ongoing revenue measures: The administration included two proposals that require legislation to lock in $44,300,000 of ongoing support in FY2026: repeal of the sales tax collection allowance (House Bill 1037) and adjusting cigarette-tax-funded tobacco-prevention advertising (Senate Bill 54).

Lawmakers' questions and context

Committee members pressed for detail on the contractors excise tax, the durability of unclaimed-property receipts (noting spikes tied to pandemic-era funds and banking charters), and whether the administration's conservative budgeting of unclaimed property was appropriate given payout risk. Terwilliger and staff repeatedly emphasized that the large unclaimed property inflows are best treated as one-time resources and that budgeting ongoing programs on those receipts would create structural deficits if the money does not recur.

Next steps

Terwilliger said agency hearings and the governor's FY2026 amendment and emergency appropriation bills will follow; he invited members to the Governor's Council of Economic Advisors meeting January 29, which informs the mid-February revised revenue estimates. The committee did not take formal votes on the budget overview during the briefing.

Ending

The budget office closed by reiterating the framework behind the recommendation: protect reserves against payout risk, avoid new long-term debt where feasible, and rely on conservative ongoing revenue assumptions while using one-time receipts for targeted investments and pressing needs.","mediaType","Video","parentTitle","Joint Committee on Appropriations - Day 1","oneSentenceSummary","Bureau of Finance and Management Commissioner Jim Terwilliger told the Joint Appropriations Committee the recommended fiscal 2026 budget balances slower revenue growth, a $175.3 million net midyear revenue revision and the cautious use of reserve funds to finish the men's correctional facility.","taxTitle","2025 Legislative SD, South Dakota","taxId",77845,"location","South Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6385949,"State auditor outlines office functions, requests no budget increase for FY2026",1492,6808000,8300000,"/Search/View?dp=1&key=2118760-f624d4d3f29a5bf224ab719488c503b7&start=6808&end=8300","https://assets.pipeline.soar.com/2118760-f624d4d3f29a5bf224ab719488c503b7/thumbnail_6808000.jpg","/articles/6385949/South-Dakota/State-auditor-outlines-office-functions-requests-no-budget-increase-for-FY2026","https://secure.pipeline.soar.com/6385949-6ca9507aa1f93320389f6a0dd7b8305f/orig.mp4?Expires=1771177140&Signature=d-BLCP79yunDqi6~lEfloeEq214fFS9o0c97el-nenB0WBmhRW7tMmKvBlQHrCia1M9c-EHYnnQbr7AvavpkT7vzPrhz56KbQA88THl8pTFeMzmKE7QeLb1M68liLPo08OcX3k0T9vlDbyPye4Ne2Lh65Yekl9U8Mb5f9u~vL3gYrGPSyexYRuFOhPX~zu1KRCNqOxAlR~poxYV3d7gPlSbJW0R75cGnOhg6TPilPvpByeiBSctHcULAXvpLZqteyvF6cODc4UmtN3hZIQnB156RaRoaXtfcbS7gySxvZGwDIIewDiiVQGQmOfEcgsjuS-TRTYlu~IdJvDgt18UrMg__&Key-Pair-Id=KUT5TJCACFTXG","State Auditor Rich Sadgast told the Appropriations Committee that the auditor's office performs a 100% pre-audit of expenditures, administers payroll-related services and Social Security records for state entities, and reconciles warrants and electronic transactions with the state treasurer and Bureau of Finance and Management.

Sadgast said the office has 16 full-time equivalents and requested no change to its FY2026 appropriation; the governor's recommendation matches the office's request at $1,789,768. He described workforce pressures: six of 16 employees are eligible for retirement in coming years and the office is compiling recruiting lists to mitigate turnover risk.

On operations he said the office reviews three primary transaction types: individual vouchers (travel and reimbursements), multiple-payee vouchers (large grant disbursements) and consultant/contract payments. He emphasized the office does not perform agency post-audits (that is the role of the Department of Legislative Audit) and that his staff ensures correctness, completeness and authorized signatures before payment.

Sadgast said ongoing modernization efforts (project Bison) may reduce some repetitive checks by automating calculations (for example mileage and pre-filled fields), but added the system could shift workload and require continued oversight; the office participates in Bison planning. \"We try not to fall more than five days behind when we're processing vouchers,\" he said, citing vendor payment timing concerns.

Ending

The auditor closed by thanking the committee and noting the office's budget request is level-funded; committee members offered thanks for his service and the hearing moved on to other agencies.","State Auditor Rich Sadgast briefed the committee on the auditor's pre-audit role, payroll and accounting functions, staffing risks and a flat FY2026 request of $1,789,768; he described workflow, retirement exposure and expected benefits from the Bison accounting project.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6385954,"School and Public Lands seeks $13.9 million state match for Richmond Dam repair; total project exceeds $22.6 million",798,5375000,6173000,"/Search/View?dp=1&key=2118760-f624d4d3f29a5bf224ab719488c503b7&start=5375&end=6173","https://assets.pipeline.soar.com/2118760-f624d4d3f29a5bf224ab719488c503b7/thumbnail_5375000.jpg","/articles/6385954/South-Dakota/School-and-Public-Lands-seeks-139-million-state-match-for-Richmond-Dam-repair-total-project-exceeds-226-million","https://secure.pipeline.soar.com/6385954-afae12fa85486b86e354ab7250a575d6/orig.mp4?Expires=1771177140&Signature=oi6EUl8lpSARo1htMYOZCN1~uBF8whgFS6~NXSNkYOtd1d1mNG8lVuG7g34zuNW-m7oGw~tmlOJdnj~F8taycwr~XbtMQbmILBy3LpUZbhWjy9dFVpoPAP5FfJsz1S2yiB5AAFfrhBlwik107Nzz4IG23rSIlZ2PRLGSTQSxqsYlcBdc~~KuQro3c66LKHQj9lki1JF9acphKBA5-KwSLL2iNnUdlopZOypJnu4yXbNa6ycnbYLnAQueb2D33el~3TFamYnGS1gvqwJzQF3Njq9U80J7uJSrsKQPiQ3iPyN2jnS9MyQwOseEg026rNKXnZP9UkBGpjeT9cjPFVXDZQ__&Key-Pair-Id=KUT5TJCACFTXG","Brock Greenfield, commissioner of the Office of School and Public Lands, told the Joint Appropriations Committee that Richmond Dam, northwest of Aberdeen, needs a combined cut-off wall and spillway replacement after engineering testing discovered seepage and new fractures that raise the risk of failure.

The office said Barr Engineering's 30% design estimates a construction cost of $22,688,500 for the cut-off wall (about 1,700 feet long and 40'to'105 feet deep along portions of the dam) and a labyrinth-weir style spillway replacement. FEMA notified the state in September 2024 of an award of $2,941,964 under a high-hazard dam rehabilitation program; prior state appropriations total $9,650,000 ($6,500,000 in 2022 and $3,150,000 in 2024). Together with the requested state appropriation in House Bill 1026, the presenter said, the total funding available would reach $25,639,046.

Why it matters: School and Public Lands said Richmond Dam ranks as the highest priority on the state's high-hazard dam matrix and that a breach could threaten life, property and infrastructure downstream toward Aberdeen. Commissioners and county emergency-management officials raised that risk during the briefing.

Project scope and timeline

- Engineering and scope: Barr Engineering expanded the project from a spillway-only fix to a combined cut-off wall and spillway replacement after borehole testing found strong seepage that raised immediate concerns about internal erosion. The cut-off wall would be backfilled with engineered material; the spillway design is a labyrinth-weir that increases discharge capacity.

- Costs and previous funding: The construction-only estimate presented was $22,688,500. State appropriations passed in prior sessions totaled $9,650,000. FEMA's award was $2,941,964. The office requested the remaining state one-time appropriation in House Bill 1026 so the project could be executed as a single staging to capture efficiencies.

- Timeline: Greenfield said if funding is approved in the current session, the project team intends to bid and begin construction next summer and expects completion in 2026.

Local coordination and emergency planning

Justin Nagel, deputy commissioner, said Brown County Emergency Management has coordinated an emergency-action plan with town and county officials and that local homeowners' and recreation interests have engaged with the office. The office emphasized that the state is the responsible steward for this structure and that local partners have provided supportive input but are not the primary funders for the core rehabilitation.

Ending

Greenfield closed by noting the broader stewardship mission of School and Public Lands, the agency's management of nearly 6.76 million surface acres and 5.5 million mineral acres for trust beneficiaries, and a request for limited operating increases to address personnel and equipment needs. The committee did not take a formal vote on House Bill 1026 during the briefing; the bill will have its own hearing.","The Office of School and Public Lands asked the Joint Appropriations Committee for House Bill 1026 to cover remaining state funds for Richmond Dam rehabilitation after a smaller FEMA award; the office said the project has federal, prior state, and local support and presented a construction design and timeline that could finish in 2026.","actionData","errors"]

Article not found

State budget office: revenue growth slowing, recommends limited use of reserves to finish prison funding

State auditor outlines office functions, requests no budget increase for FY2026

School and Public Lands seeks $13.9 million state match for Richmond Dam repair; total project exceeds $22.6 million