PIERRE, SD (KELO.com) — South Dakota just finished the first quarter of the 2025 fiscal year. The Legislature’s Appropriations committee was told this afternoon revenues are down. Derek Johnson of the Bureau of Finance and Management says the budget assumed three-percent growth.
The farm economy is down sharply, as witnessed by decreased tax revenues from farm equipment sales.
All told, sales tax revenues this July were down 5.9-percent from July of 2023. Governor Noem will present her budget to legislators next month. The Appropriations Committee also heard hours of testimony on a proposed new men’s penitentiary. Lawmakers have set aside about 600-million dollars for the facility in recent years. Thursday, they were told it will take about 200-thousand dollars more to build it. In the meantime, Corrections Secretary Kelly Wasko says the need for more prison space is growing.
Contractors gave a maximum guaranteed price of 825-million dollars for the new men’s prison proposed to be built between Harrisburg and Canton. Roughly two-thirds of the construction work will be performed by South Dakota contractors. The new prison’s location is between Harrisburg and Canton. Neighboring residents also testified before the Appropriations Committee. Lincoln County resident Sarah Ulmer was among those questioning the proposed location.
Corrections Secretary Wasko says other sites and options have been considered – including construction at the current penitentiary site in Sioux Falls.
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