GOVERNOR LARRY RHODEN HAS ANNOUNCED SOUTH DAKOTA CLOSED THE STATE FISCAL YEAR 2026 BUDGET WITH A SURPLUS OF 69 MILLION. DOLLARS.
THE SURPLUS INCLUDED $30 MILLION IN REVENUE ABOVE ESTIMATES.
IT ALSO INCLUDES $39 MILLION IN SPENDING REVERSIONS, MEANING STATE AGENCIES SPENT LESS THAN THEY WERE BUDGETED, A SIGN OF STRONG FISCAL RESPONSIBILITY.
SALES TAX REVENUE GROWTH ACCOUNTED FOR $17 MILLION OF THE SURPLUS,
IN FY2026, SALES TAX GREW 6.6% COMPARED TO FISCAL YEAR 2025, SIGNIFICANTLY HIGHER THAN HISTORICAL AVERAGE GROWTH OF 4.7%.
THE LARGEST AREA OF UNSPENT FUNDS CAME FROM THE DEPARTMENT OF SOCIAL SERVICES, TOTALING $32 MILLION.
PER STATE LAW, THE $69 MILLION SURPLUS WAS TRANSFERRED TO THE STATE RESERVE FUNDS, WHICH NOW TOTALS $325 MILLION, OR 12.7%, OF THE FY2027 BUDGET.
IT WILL BE AVAILABLE FOR ONE-TIME INVESTMENTS IN FUTURE BUDGET YEARS.
