top of page
Search

South Dakota Reports Strong Economic Growth and Maintains AAA Credit Rating in 2025 Financial Report

South Dakota seal over stacked coins and upward graph. Text: "South Dakota reports strong economic growth and maintains AAA credit rating in 2025." Northeast Radio SD logo.

Northeast Radio SD News – South Dakota - The South Dakota Bureau of Finance and Management (BFM) has released the state’s Annual Comprehensive Financial Report (ACFR) for fiscal year 2025, highlighting a period of significant fiscal expansion and the continued preservation of the state’s top-tier credit standing.


The report, which provides audited financial statements for the state government, serves as a comprehensive look at South Dakota’s economic health. The findings show a notable increase in the state’s overall financial position and a commitment to debt-free infrastructure funding.


Financial Growth and Stability

According to the ACFR, South Dakota’s net position rose to $10.3 billion, marking a $488.8 million (5%) increase over the previous fiscal year. This growth is mirrored in the state’s General Fund, which increased to $1.7 billion, up $68.4 million (4.3%) from last year.


A key highlight of the 2025 report is the state’s proactive approach to capital projects. South Dakota avoided incurring new debt by allocating $593.2 million to the Incarceration Construction Fund, ensuring that large-scale infrastructure needs are met through existing resources rather than long-term borrowing.


Sustained Credit Excellence

For the ninth consecutive year, South Dakota has maintained its AAA credit rating from all three major credit rating agencies. This rating—the highest possible—signals to investors and the public that the state possesses a high level of creditworthiness and disciplined financial management.


Governor Larry Rhoden emphasized that these results are the product of a specific fiscal approach. Rhoden stated that the state remains guided by fiscal conservatism, with an ongoing focus on keeping taxes low, limiting regulation, and enhancing government transparency. Rhoden noted that a well-managed government is a primary driver of the state’s broader economic growth.


Collaborative Reporting

The ACFR is the result of a coordinated effort between the BFM, various state agencies, and the Department of Legislative Audit. The document is intended to provide a transparent and objective view of how state funds are managed and utilized.


The full report is available to the public online at the Bureau of Finance and Management website. Printed copies can be requested directly from the BFM office in Pierre. https://bfm.sd.gov/ACFR/


bottom of page