Senate passes supplemental budget (House Bill 1046) with $74.6 million net reduction and $22.8 million transfer to unclaimed property trust

Pierre, S.D. — The South Dakota Senate approved House Bill 10 46 on March 13, 2025, a supplemental budget bill that finalizes adjustments to the fiscal year 2025 appropriations act.

Senator Guida introduced HB 10 46 on the floor, saying the bill makes necessary adjustments to finalize the fiscal year 2025 budget and reporting a net decrease in general fund expenses of $74,600,000. The sponsor said $34,100,000 of the adjustments reflect lower Medicaid utilization and that $31,600,000 in general funds were made available to support one-time initiatives set aside over the past two years to plan for the full cost of Medicaid expansion.

The bill directs one-time funding for a number of items: $13,000,000 to finalize work on the Richmond Lake Dam, funds for evidence kit replenishment and victim services, $5,000,000 to the IT modernization fund, $22,800,000 to be transferred to the unclaimed property trust fund, and smaller appropriations such as $427,446 for Spearfish radio tower equipment and $123,200 to purchase legislative broadcasting equipment. The sponsor said $31,600,000 in general funds were available for one-time initiatives because of amounts set aside in previous years.

Senator Larson voiced opposition to the $22.8 million prefunding of the unclaimed property trust fund, saying the transfer was not part of the previously established plan and warning that the money would not necessarily be recoverable without a supermajority vote. Senator Melhoff responded that unclaimed property dollars are abandoned funds belonging to individuals and argued the transfer was a prudent step to address an estimated unfunded liability of about $1.2 billion.

On final passage the roll call showed 31 yeas, 3 nays and 1 excused. The president declared the bill passed.