State of South Dakota to end fiscal year 2026 with a $69 million budget surplus

The state of South Dakota is set to end fiscal year 2026 with a $69 million budget surplus. The surplus includes about $30 million in revenue. State agencies remained under budget resulting in $39 million in spending revisions. The surplus will be transferred to the state revenue funds, which totals $425 million or 12.7 percent of fiscal year 2027 budget and will be available for one-time investments in future budget years. Sale tax revenue brought in $17 million of the surplus. State sales tax revenue grew 6.6 percent in fiscal year 2026, compared to 4.7 percent in 2025.