Gov. Kristi Noem wants to avoid issuing bonds to pay down the last remaining cost for the two proposed prisons in the state.
The Republican governor wants to put $250 million toward the projects to get them started.
Over the last three years, the governor and state lawmakers have tucked away about $400 million into the Incarceration Construction Fund. That pool of money will go toward constructing a women’s prison in Rapid City and a men’s prison near Sioux Falls.
Even with another quarter of a billion dollars going toward paying down the prisons, funding to complete the men’s prison will still come nearly $138 million dollars short.
In an interview with SDPB, Noem said favorable revenues are still coming into the state. She said she’d like to see those one-time dollars go toward paying down the prisons.
“At the end of session, we may have more one-time funds that we can dedicate toward that project. Then, next year it should be a priority to finish it. But that doesn’t mean the project stops. It’s moving forward," Noem said. "The women’s prison is moving forward and will be funded and get done. The fact of the matter is, is that our facilities are out of date. They’re not ADA compliant. They’re not safe. It should have been done a long time ago. I’ve decided to make it a priority. We’ll get it built.”
Leaders in the House and Senate agree. They’d like to get the prisons paid for and built. However, some have suggested the state may need to look at bonding the rest of the project to avoid delays, which will also cost the state extra money.
Noem said she wants to avoid that.
“I want to do it this way, because if we bond for these projects it could cost taxpayers in the future up to $500 million in just interest payments over the next 25 years. For me, that’s just not fiscally responsible. I think we can be smart. Save our dollars. Pay for it as we build it. We’ll get that completed," Noem said. "I think the legislators overwhelmingly agree with that. I think they’re focused on getting those projects built too.”
The governor and lawmakers will get a clearer sense of projected revenues in mid-February. That’s when state and legislative officials begin the work of honing in the budget.
