SD marks 3rd consecutive fiscal year end with surplus
PIERRE -- South Dakota state government closed the 2014 budget year on June 30, marking the third consecutive year with a surplus, Gov. Dennis Daugaard announced Thursday. The state general fund budget for fiscal year 2014 ended with higher revenues and lower expenditures than budgeted.
Revenue growth for the completed 2014 fiscal year exceeded estimates adopted by the Legislature by $2.6 million. State agencies also spent $7.2 million less than appropriated. In total, the state's financial picture improved by $9.8 million from the March fiscal year 2014 estimates.
"This marks the third year in a row that we have maintained structural balance in our budget. This was my number one priority when I took office," Daugaard said. "We were able to finish the fiscal year strong. Our ongoing revenues came in higher than projected and our expenses came in lower than budgeted. These two important features will place state government in a very enviable position as we begin the 2015 fiscal year."
South Dakota's sales and use tax receipts, the state's largest revenue source, grew 0.54 percent over the revised projections and 6.1 percent over last year's levels. Collections from the sales and use tax accounted for 56 percent of general fund receipts in fiscal year 2014.
Other notable revenue increases came from the contractor's excise tax and insurance company tax, which grew 7 percent and 6.9 percent, respectively, over fiscal year 2013. The revenue source that experienced the largest decline was the bank franchise tax, declining 38.5 percent, or $6.8 million, compared to the prior year. Total state general fund receipts were $1,476,230,027 for the recently ended fiscal year. Ongoing receipts to the general fund totaled $1,353,797,245.