ADVERTISEMENT

ADVERTISEMENT

Weaker state revenues reported after revised legislative estimate

PIERRE -- For two months in a row, the revised state revenue estimate that was adopted by the Legislature in February for fiscal 2017 still came up short.

1538851+capitol.jpg
(Daily Republic file photo)

PIERRE - For two months in a row, the revised state revenue estimate that was adopted by the Legislature in February for fiscal 2017 still came up short.

The state Bureau of Finance and Management this week issued its April report showing results weaker than expected.

General fund collections totaled $92 million for February and $93 million for March.

The Legislature in February estimated they would be $102 million collected for February and $97 million for March. The shortfall is approximately $14 million.

"There's still some softness in the revenue," state economist Jim Terwilliger said Wednesday. "We continue to be challenged in the e-commerce."

ADVERTISEMENT

The lack of inflation is another factor. It's not leading to much growth in the sales tax base, he said.

"From 2007 to 2014, we had really strong (farm) income," Terwilliger continued. "You're just seeing some adjustments going on in the ag economy. It takes some time to adjust to those lower prices."

South Dakota farm income peaked in 2011 at $3.8 billion, fell to $1.8 billion for 2015 and slid to $800 million in 2016, according to the report.

Liza Clark, commissioner of finance and management for Gov. Dennis Daugaard, said it's too early to forecast where state government finishes fiscal 2017 come June 30.

"It's still pretty preliminary. We still have three months of revenue to come in," Clark said.

The cumulative shortfall for fiscal 2017 was $43.5 million in February. The Legislature then adopted its revised estimate.

At a glance

Top four reasons for state government's February shortfall of $9.8 million?

ADVERTISEMENT

• State sales tax off $2.6 million

• Contractor's excise tax off $1.1 million

• Insurance company tax off $4 million

• Unclaimed property off $1.7 million

What To Read Next
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
Members Only
Although Mitchell's rates would be increase, the proposed equitable rate structure could lessen the increased costs for residential customers' water and sewer bills.
“We see that when things happen in the coastal areas, a few years later, they start trending toward the Midwest,” said Rep. Ben Krohmer, serving his first term in the House.