South Dakota Lawmakers Set Prison Construction Cap at $650 Million
Photo: South Dakota’s Prison Project Reset task force members voted on July 8 to support the development of a new men’s prison near Sioux Falls. | Photo Credit: South Dakota Department of Corrections
By Lindsey Coulter and Kat Balster
PIERRE, S.D. — South Dakota’s Prison Project Reset task force members voted on July 8 to support the development of a new men’s prison near Sioux Falls, S.D., at a maximum price of $650 million, an increase of $50 million from a cap previously established in June but also $75 million lower than project consultants estimate the facility will actually cost (not accounting for potential cost overruns or supplemental funding requests.) Now, the state’s lawmakers will need to approve the spending bill by a two-thirds majority to advance the project.
Additionally, task force members announced their preferred locations for the project: two industrial sites located northeast of Sioux Falls. The ultimate decision on location will be determined by state lawmakers.
Need for Additional Capacity Grows
South Dakota is bracing for a projected 34% increase in its male prison population by 2036, and a major corrections overhaul could cost more than $2 billion over the next decade. On June 3, Arrington Watkins Architects (AW) presented its updated master plan to the task force, offering an assessment of existing conditions and options for expansion.
The consulting team was charged with refreshing the state’s 2021 correctional master plan. In addition to Arrington Watkins, the team included CGL Companies, EAPC, KLJ and RLB. The initial plan called for 2,866 new beds and proposed replacement of the aging South Dakota State Penitentiary (SDSP). The refresh also incorporates updated population forecasts and feasibility reports on potential sites for the new facility.
In this latest analysis, the South Dakota prison population is expected to grow by 2.7% annually from 2025 to 2036. This is due partially to normal demographic trends, but also due to Senate Bill 146, which was passed in 2023 and eliminates parole for violent offenders. By 2036, the male inmate population is projected to reach 4,485, an increase of more than 1,100 from today’s levels.
As of March 2025, the study shows that prisons in South Dakota are already operating at 133% capacity, with 3,264 male inmates housed in facilities that are only built to hold 2,453.
“You are only about 288 beds short of your 2041 numbers by the end of this year,” said AW principal Mike Quinn during the presentation of findings to Project Prison Reset. “That isn’t a good basis for capacity planning.”
At 144 years old, SDSP was identified as a problematic building. “Despite renovations [it] doesn’t meet modern codes or best practices,” said Quinn.
The team cited safety, accessibility and structural concerns in the report, providing a clear recommendation: SDSP should be decommissioned and demolished by 2030.
In the updated report, the consultant team laid out a plan that would address capacity needs. This five-phase construction timeline would begin with a 1,728-bed Level V facility to open by 2029. Following would be phases to expand Sioux Falls Community Center, two 768-bed Level IV facilities and a possible second large-scale complex. With all the recommendations, this would amount to a construction cost projected between $1.9 billion and $2.1 billion, not including the cost of demolition.
Follow Correctional News for updates as the project progresses.