PIERRE, S.D. — Gov. Dennis Daugaard’s administration said Wednesday that lower-than-expected tax collections will require a lean state spending plan for South Dakota’s upcoming budget year.
Daugaard spokeswoman Kelsey Pritchard said in an email that the administration wouldn’t have specific details to offer until the governor’s December budget address to the Legislature.
The Republican governor will outline early in December his fiscal year 2019 budget proposal. The legislative session that starts in January and ends in late March is Daugaard’s last as governor.
Lawmakers will revise the current year’s budget and shape the next one during the upcoming 2018 session.
“I think that we have the ways and means in order to meet our obligations and ensure that the folks that need to be cared for are cared for and that we can provide money for education,” said Republican Sen. Larry Tidemann, chairman of the Senate Committee on Appropriations. “I’m not overly concerned.”
State figures released this week show revenues for the first four months of the current budget year are roughly $8.3 million, or 1.5 percent, below expectations due in large part to short sales tax receipts. Sales tax is the state’s main revenue source.
Lawmakers also dealt with sluggish state tax collections in the 2017 legislative session. But South Dakota ended the 2017 budget year with a surplus built on state spending reductions after Daugaard asked agencies to cut spending in the face of weaker-than-anticipated revenues.