Unexpected expenses: State project costs jump by millions
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
Predicting construction costs has become nearly impossible amid high inflation and labor costs. "It’s almost unbelievable at this point; it’s like everything I learned through the first 20 years of my career is out the window." -- Andy Scull, president of J. Scull Construction Services in Rapid City
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
State projects costing millions more
Here is a list of the nine legislative bills that could lead to increased spending on government construction projects that received prior approval. Projects are listed with House Bill or Senate Bill number; project type and location; and proposed cost increase.
- HB 1006: Kinsman Building, Pierre, from $1.5 million to $3.0 million, $1.5 million increase
- HB 1022: State health lab, Pierre, from $69.6 million to $82.4 million, $12.8 million increase
- HB 1030: Bio-products lab, Brookings, $20 million to $23 million, $3 million increase
- HB 1031: South Dakota State University dairy lab, Brookings, $7.5 million to $8.5 million, $1 million increase
- SB 18: State Fair livestock complex, Huron, $20 million to $29 million, $9 million increase
- SB 33: Minerals building at Mines, Rapid City, $34 million to $41.8 million, $7.8 million increase
- SB 93: Dakota State University athletics center, Madison, $28 million to $40 million, $12 million increase
- SB 172: Health center, Black Hills State University-Rapid City, $15 million to $20 million, $5 million increase
- SB 173: Lincoln Hall at Northern State University, Aberdeen, $29.5 million to $39.5 million, $10 million increase
- Total increases: $62.1 million Source: South Dakota Legislature
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
South Dakota taxpayers could pay millions of dollars in unexpected expenses caused by inflation and workforce challenges that are hitting the construction industry.
Nine bills have been filed in the current legislative session in Pierre to increase funding for construction projects that were passed in prior years but have gotten much more expensive due to inflation and higher employee costs. All told, those bills would increase spending by $62.1 million for university labs and dorms, a new athletic arena, the state health lab and other projects across the state.
While lawmakers often consider a bill or two each session to make up for higher-than-expected construction costs, this year has seen inflationary impacts that are far beyond the norm, officials said.
The rising costs are due to inflation that has struck especially hard in construction materials and labor costs, which have risen far faster over the past two years than the overall national inflation rate of 8% in 2022 and 4.7% in 2021, according to the U.S. Bureau of Labor Statistics. The national inflation rate remained at 6.4% in January 2023, according to the government. For several years prior, the national inflation rate hovered around 2% or less.
