While most of this unclaimed property is used to support the state’s budget, Treasurer Josh Haeder has advocated for the creation of an unclaimed property trust fund to better stabilize revenue. This fund would retain money for potential claims and generate interest for state use.
Governor Kristi Noem’s proposed budget includes significant spending cuts due to declining sales tax revenue, but she also calls for $229 million in unclaimed property revenue to fund various initiatives. Key proposals include:
- $182 million for building a new prison in Sioux Falls.
- $54 million for bond payments on state infrastructure projects.
- $13 million for dam replacement at Richmond Lake.
- $10 million for K-12 school safety grants.
- $5 million for IT infrastructure improvements.
Noem’s budget anticipates using $167.7 million of one-time revenue, with the rest allocated as ongoing revenue for the state’s general operations. Lawmakers will begin reviewing these proposals in January 2025, amid potential political changes with Noem’s anticipated resignation for a federal role in the Department of Homeland Security.