PIERRE, S.D. – The Rhoden Administration released a new funding plan for a new state prison, announcing it will save South Dakota taxpayers $154.2 million. The plan, presented to state legislators, outlines a fiscally responsible approach to funding the long-debated project.
“We are in a great position! Thanks to current and former legislators who set aside funding for a new prison, we have the ability to pay for this project in cash,” Governor Larry Rhoden said. “This is a fiscally responsible plan, and as long as we don’t kick the can down the road, we will save a significant amount of taxpayer dollars.”
The updated plan, which follows recommendations from a state prison task force, reduces the total cost by $175 million compared to a previous design for a site in Lincoln County. This savings, combined with a deduction of $20 million in unrecoverable “soft costs” from the prior site, results in the net savings of $154.2 million for taxpayers.
Lt. Governor Tony Venhuizen and Bureau of Finance and Management Commissioner Jim Terwilliger held teleconference meetings for state legislators to provide clarity on the funding component.
“Never before have we had the ability as a state to pay for such a large investment in public safety without saddling the taxpayers with debt,” said Commissioner Jim Terwilliger. “Replacing our 140-year-old penitentiary with a modern facility is the right investment at the right time for the people of South Dakota.”
The new plan shifts the proposed location to a site at Benson Road in Sioux Falls, a move unanimously agreed upon by the state’s prison task force. A special legislative session is scheduled for later this month to vote on the revised plan. The previous $825 million proposal for a prison in Lincoln County was rejected by lawmakers earlier this year.