House passes supplemental budget bill with $74.6 million net general fund reduction; bill goes to governor

House Bill 10-46, the supplemental budget for fiscal 2025, won final passage in the South Dakota House on March 13. Sponsors described the bill as a package of one-time adjustments that together produced a net decrease in general fund expenses of $74,600,000.

Representative Kassem, who introduced the bill on the floor, said HB 10-46 "revises the general appropriations act for fiscal year 2025" and enumerated major adjustments: a $34.1 million reduction tied to lower Medicaid utilization, $5.7 million reduction in state aid to education aligned to enrollment, and $31.6 million in general-fund savings from changes in Medicaid and CHIP eligibles. The bill also directed $22.8 million to an unclaimed property trust fund and $5 million to an IT modernization fund, and sponsors described one-time investments for maintenance and for a Richmond Dam replacement project.

Supporters framed the supplemental as using one-time revenue to address infrastructure and other needs while keeping the state on a sustainable path. Representative Norrishrup described the bill as focused on "one-time" versus "ongoing" buckets and said the measure paid down a $53.7 million bond related to laboratory and facility projects and used one-time funds for maintenance and victim services grants.

Some members objected to specific pre-funding choices. Representative Muckey, while praising much of the package, urged caution about a pre-funding transfer to the unclaimed property trust fund and said that pre-funding reduced flexibility for potential future needs. Representative Kolbeck also expressed opposition to aspects of the bill based on differing priorities.

The House vote on final passage was 64 ayes and 6 nays. Following the vote the speaker signed HB 10-46 as required in open session for delivery to the governor's office.