Collections well below projections in latest revenue report
South Dakota’s avoided the worst of winter’s coldest weather, thus far, but the state’s revenue collection last month was below zero, per se.
November’s reported revenue collections came in lower than any other month thus far in fiscal year 2018 with actual collections coming in nearly $17 million lower than the projection adopted by the state’s legislature.
Unclaimed Property Receipts were the shortfall’s main perpetrator, coming in more than $14 million under the adopted projections, followed by Sales Tax, Contractor’s Excise Tax and the Insurance Company Tax posting losses of more than $1 million compared to projections.
November’s loss brings the FY18 revenue shortfall in ongoing receipts to nearly $25 million, which likely furthers the effect the economy has had on schools.
Earlier this month (December) at the final budget address of his gubernatorial tenure, Gov. Dennis Daugaard proposed no inflationary increase in state aid.
“I cannot recommend inflationary increases, at all,” Gov. Daugaard said during the address.
Projected increase in enrollment – approximately 1,500 students next year – will provide the primary funding increase of approximately $16 million next year.
“This is one of the biggest issues facing schools, right now,” ASBSD Executive Director Wade Pogany said. “The issue with our state’s revenue collection is beyond our control.”
“However, board members and administrators have to stay informed on the issue and be willing to advocate to our state and local leaders on the needs of public education.”
ASBSD will provide updates on state revenue figures and their impact on state aid, as well as on the upcoming legislative session, on the ASBSD Blog and Twitter feed.
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