South Dakota reserve funds grow to nearly half billion dollars

Gov. Larry Rhoden announces new budget surplus as sales tax revenues drop

South Dakota’s state government ended the 2025 fiscal year with a $63 million operating surplus, Gov. Larry Rhoden announced Monday.

The surplus includes $41 million in excess revenues and $22 million in unspent appropriations, according to Rhoden, who emphasized the state’s commitment to conservative fiscal management. The state has typically added to reserves over the last 15 years, spurred by a decision in 2011 by Gov. Dennis Daugaard to cut budgets during the Great Recession rather than use reserves for ongoing expenses.

“South Dakota is a leader in our nation – especially when it comes to disciplined financial management,” Rhoden said in a release. “We will continue to be careful stewards of taxpayer dollars by making wise long-term investments, maintaining conservative fiscal policies, and only spending within our means.”