SIOUX FALLS, S.D. (KELO AM) - Governor Daugaard last year asked the Bureau of Finance and Management to create a new limitation guide for existing debt and the issuance of new debt.
Daugaard says total debt can’t exceed 1.2 % of the state’s Gross Domestic Product and debt service payments can't exceed 4% of general fund revenue.
At the end of fiscal yeat 2014, South Dakota's total oustanding debt as percentage of state GDP was 0.8% and annual debt service payments as a percentage of ongoing general fund revenue was just under 3%.
The South Dakota Building Authority and South Dakota Health and Educational Facilities Authority issue and refinance bonds to pay for things such as state park projects and public university projects.
Standard and Poor’s revised South Dakota’s outlook from stable to positive last summer.