Rhoden Administration Outlines Funding Plan for New Prison


Article Body

FOR IMMEDIATE RELEASE

September 18, 2025

Contact: Josie Harms

 

Rhoden Administration Outlines Funding Plan for New Prison

Saves $154.2 million in taxpayer dollars

 

PIERRE, S.D. – Today, the Rhoden Administration released additional information on the funding for the new prison, articulating that the new plan will save $154.2 million in taxpayer dollars. You can find additional information related to the funding plan for the new prison, which was presented to legislators yesterday, here.

 

“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,” said Governor Larry Rhoden. “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.”

 

Last week, Governor Rhoden released the full plan for a new prison. Yesterday, Lt. Governor Tony Venhuizen and Bureau of Finance and Management Commissioner Jim Terwilliger hosted two teleconference meetings for state legislators to ask questions and gain clarity on the funding component of proposed plan. Once again, a majority of state legislators participated in those teleconferences.

 

The full plan is $175 million less than the previous design, resulting in a net savings of $154.2 million to the taxpayer. The savings occur from:

 

  • The budgeted reductions of $175 million between the Benson Road site and the Lincoln County site that were made to align with the prison task force’s recommendations; and
  • Deducting the estimated soft costs of $20 million associated with the previous Lincoln County site that are unrecoverable.

 

“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.”

 

You can find answers to Frequently Asked Questions about the prison plan here.

 

###