Legislative leaders are echoing calls by Gov. Kristi Noem to continue paying down two prison projects in the state.
Officials are hoping to avoid issuing bonds they say would cost the state the hundreds of millions of dollars.
Noem wants to place another $250 million into something called the “Incarceration Construction Fund.”
That’s a pool of money lawmakers have been setting aside to pay down the two prison projects in the state. Over the last three years, state lawmakers and the governor have tucked away over $650 million dollars into the fund.
The men’s prison is out of date, and the women’s prison is well over capacity.
Republican Representative Will Mortenson, House Majority leader, said the time to pay for the prisons is now.
“Our caucus has a real priority of law and order,” Mortenson said. “There’s only one, most important, law and order bill this year and it’s the bill coming to fund those prisons.”
Republican leaders in both the House and Senate say they want to avoid issuing bonds to pay for the projects. They say that would saddle the state with hundreds of millions of dollars of extra cost down the road.
The move this year will fully cover current projected costs for the women’s prison in Rapid City, but will still be roughly $138 million dollar short for the men’s prison. The state has already bought property for the facility in Lincoln County, but is facing local opposition.
Other lawmakers worry delays in construction will result in increased costs.
Republican Representative Mike Derby is chair of the committee that crafts the state budget. In an exchange with the governor’s budget manager, he said the state might have to bond.
“I don’t think—based on what we’re looking at for per cost square footage is going to be enough,” Derby said. “I’m just going to say it. I think at some point in time we may have to look at bonding as part of the package.”
Money transferred to the Incarceration Construction Fund will come from the general fund and reserves. Officials also hope to leverage $12 million dollars in federal American Rescue Plan Act dollars, which must be spent by the end of 2026.
