ADVERTISEMENT

ADVERTISEMENT

If tax revenues remain short, state reserves might be used

PIERRE -- State government might need to tap its $157 million of reserve funds this spring or summer if tax revenues continue to lag, the Legislature's budget co-chairmen said Friday.

2273896+SD state capitol3.jpg
South Dakota State Capitol

PIERRE - State government might need to tap its $157 million of reserve funds this spring or summer if tax revenues continue to lag, the Legislature's budget co-chairmen said Friday.

The comments came as lawmakers approved $24 million of cuts to the current 2017 budget for state government that runs through June 30.

Then they set a 2018 budget that starts July 1. It is $9.9 million smaller than what they passed a year ago.

"We did not grow government. We reduced," said Sen. Larry Tidemann, R-Brookings.

He said reserves would be used if necessary to finish the 2017 budget year.

ADVERTISEMENT

Tidemann said the governor's proposal delivered in December was cautious. Lawmakers kept trimming as revenue kept falling below forecasts each month.

"The collections were not coming in. We couldn't understand the reason why," he said.

Rep. David Anderson, R-Hudson, said revenues have been down every month but one since July for fiscal 2017. So cuts must be made for the remainder, he said.

Anderson said legislators on the joint appropriations committee have revised agency budgets down "to fill the need, basically."

Recalling the governor's budget speech in December, Anderson said: "The reality of where our revenues are going hadn't fully developed."

If revenue continues to fall in the remaining months of fiscal 2017, then reserves kick in by end of June, Anderson said.

"They cover the shortage," Anderson said about using reserves if necessary.

What To Read Next
“Why would we create new major programs, when we can’t even fund the programs that we have?” a public education lobbyist said in opposition to Noem's three-year, $15 million proposal.
"If we show we are complacent with areas like this that clearly need addressing, we’re not improving as a city,” Mitchell Republic Editor Luke Hagen said during the city council meeting discussion.
Discussion will take place during the 6 p.m. meeting on Monday at City Hall
Lawmakers have said it is likely only one is affordable at this time without cutting programs or adding other taxes or revenue streams