The South Dakota Freedom Caucus commends Governor Larry Rhoden for not recommending the usual, de facto increases in government salaries in this week’s (Dec. 2, 2025) budget proposal at a time when the taxpayers are struggling. However, they say parts of the Governor’s address are “deeply misleading” and “fiscally irresponsible” in regard to its characterization of the state’s financial position.
The group said Rhoden acknowledged in his own remarks that last year’s $63 million surplus was “largely driven by one-time unclaimed property revenues” and admitted that “without those unclaimed property dollars, we’d have actually been a bit short on our revenue at the end of the fiscal year.” Yet the address framed this precarious position, and potential shortfall, as fiscal strength. South Dakota Freedom Caucus said that narrative is repeated in 2026 with another $61 million in unclaimed-property funds and again in 2027 with $58 million. Without these temporary cash grabs, all of those years would have posted negative balances.
“Let’s be clear about what unclaimed property actually is,” said Representative Tina Mulally, Treasurer of the South Dakota Freedom Caucus. “This is money that belongs to South Dakota citizens and across our nation — not the government. When Pierre balances its books by taking property that was never returned to its rightful owners, that’s not fiscal conservatism. That’s the government helping itself to the people’s money.”
The Freedom Caucus also raised what it describes as ongoing concerns about executive spending occurring without direct legislative approval. The Caucus points to more than $35 million in March 2025 GOED-approved loans, grants, and bonds, as well as Governor Rhoden’s recent request for unrestricted access to the remaining $65 million previously designated for housing loans. The group contends that unspent funds do not automatically revert to the executive branch and says that returning the money to taxpayers — perhaps through modest property-tax relief — would be the more responsible option.
“South Dakotans deserve to know where their tax dollars are going — and who’s making those decisions,” said Representative Phil Jensen, Chair of the South Dakota Freedom Caucus. “When the executive branch can move tens of millions of dollars without a vote of the people’s representatives, that’s not limited government. That’s a slush fund.”
The caucus pointed to prior examples of executive overreach, including the controversial state airplane purchase, the millions awarded to a state-funded gun range project after the legislature explicitly declined to fund it, and, what has amounted to the state’s largest lease agreement in history, with the $300 million “One Stop” building in Sioux Falls.
Senator John Carley, Vice Chair of the South Dakota Freedom Caucus, signaled that reforms are This session, we will be pushing for rules changes that restore the legislature’s constitutional authority over appropriations. The power of the purse belongs to the people’s elected representatives — not to executive boards operating in the shadows. We’re calling on our colleagues to join us in demanding transparency and accountability before session begins.”
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