PIERRE, S.D. (AP) - South Dakota Gov. Dennis Daugaard says the state used $56.2 million of one-time funds to make a dent in the state's bonds.
The payoff was outlined by Daugaard in his budget address and in a piece of legislation that passed in the 2014 session with nearly unanimous support. The law that authorized the payments took effect immediately.
The state has prepaid $5 million of bonds and $8.4 million of interest.
An additional $42.8 million of state bonds will now be managed and the contract then dissolved through First National Bank of Sioux Falls.
The state's recent payments make up 16 percent of all outstanding bonds through the South Dakota Building Authority. The Authority is a part of state government created to provide low-cost financing for state buildings.