PIERRE, S.D. (AP) — State tax collections continue to match earlier projections, an indication South Dakota’s economy is performing as expected, Gov. Dennis Daugaard said Thursday.
The Republican governor said tax collections through the end of January were the same as were projected when he proposed a state budget in early December. However, there is no sign there will be extra money to spend beyond those earlier projections, he said.
“The good news is the revenue is almost precisely what we were projecting it to be,” Daugaard said at his weekly news conference. “To the extent we were all hoping that things might be rosier, they’re on track but not any rosier than that.”
When Daugaard proposed his budget, he noted that ongoing state revenue for the current budget year was expected to be about $24 million higher than had been projected when the current budget was passed nearly a year ago by the Legislature. The portion of the state budget funded by general state taxes is nearly $1.3 billion.
Daugaard also noted that $26.5 million is available for spending on one-time projects this year and next year, and left it up to the Legislature to decide how to allocate that money.
The governor said the latest revenue projections mean all of that one-time money is still available. Legislators have been talking about using some of it to set up scholarship programs.