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Bill

HB 1060

remove the five percent calculation requirement from the county budgetary process.

2026 Regular Session Introduced by Heather Baxter and 12 co-sponsors

HB 1060 eliminates South Dakota's requirement that counties maintain a 5% budgetary reserve, giving counties more discretion over reserve levels.

Signed by the Governor on 2026-02-17 H.J. 326
#counties #taxation
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Bill Summary · HB 1060

Legislative bill overview

HB 1060 removes a requirement that counties calculate and maintain a 5% budgetary reserve or contingency fund during their budget planning process. This simplifies county budgetary procedures by eliminating a specific calculation mandate that currently governs how counties must structure their financial reserves.

Why is this important

County budget reserves serve as financial safeguards for unexpected costs, economic downturns, or emergencies. Removing this requirement gives counties flexibility in reserve management but could potentially leave some counties vulnerable if they choose minimal reserves during budget constraints or leadership transitions.

Potential points of contention

  • Financial stability concerns: Removing a mandated minimum reserve could allow counties to operate with insufficient emergency funds, risking service disruptions during crises or revenue shortfalls
  • Local control vs. fiscal responsibility: Counties gain budgeting flexibility, but there's no guarantee they'll maintain adequate reserves voluntarily without the 5% requirement
  • Implementation inconsistency: Without a standard requirement, reserve levels could vary significantly between counties, creating disparate levels of fiscal preparedness across the state

Compiled from official sources — confirm details with the bill’s official record.

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