Revenue collections remain on a roll
South Dakota’s strong 2022 Fiscal Year continued in December.
Gov. Kristi Noem touted the month and year’s strength in her State of the State Address on Tuesday (1/11) citing “exceptional revenue growth that South Dakota has enjoyed” because of the steps the state has taken in the past few years.
“So far this year, we’re $116 million higher” in revenue collections than the projections adopted by the legislature, Gov. Noem said, adding that “ongoing general fund revenues were $20.8 million higher” in December than even her revised budget projection presented in December during her budget address.
Also on Tuesday, S.D. State Economist Derek Johnson testified in front of the Joint Appropriations Committee the state continues “to see strong growth” in sales tax with the projection at the end of the fiscal year for the state’s biggest revenue gainer expected to be $92.5 million more than the legislature’s adopted projection for the fiscal year and total revenue collection projected $129 million higher.
Johnson added the sales tax collections are even $20.7 million higher than even the Governor’s revised collection figures for FY22 with total collections trending nearly $31 million more.
Those projections and potential collections will be key for schools because the stronger the possible finish to the fiscal year, the more dollars available in addition to the revenue projections for Fiscal Year 2023 and a buoy to maintaining the proposed 6 percent increase in state aid for next school year.
A 6 percent increase in state aid would add $42.5 million in new money for schools which would be included in the $157.5 million expected to be spent by the state in FY23.
“The goal for this session remains ensuring our public schools receive the 6 percent increase in state aid,” ASBSD Executive Director Wade Pogany said. “Our schools, staff and teachers need those dollars to continue to provide the excellent public education we provide students throughout the state.”
Revenue projections for FY23 will be adopted and FY22’s figures revised by the Joint Appropriations Committee on Tuesday, February 15.
For updates on revenue and legislation during session, check the ASBSD blog and Bill Tracker Page.
- Posted by asbsd
- 0 Comments