South Dakota’s state coffers closed the 2019 budget year June 30 with a $19.4 million surplus.
By law, the surplus was transferred to the budget reserve fund, giving the state a total reserve of $189.1-million.
Ongoing revenue finished lower than projected levels, but the state general fund budget also ended with lower expenditures than budgeted.
Total spending for fiscal year 2019 was $23.1-million lower than budgeted. Ongoing general fund revenue was $4.4-million lower than estimates. Sales and use tax receipts– the state’s largest revenue source– grew by 3.7 percent, but still finished $9.9 million below estimates. However, three sources of general fund revenue finished above legislative estimates. They were the bank franchise tax, unclaimed property receipts and lottery.
Gov. Kristi Noem says state agencies are saving money for the future and ensuring the next generation’s financial foundation remains strong. She says it was prudent to have not budgeted for any additional sales and use tax from online and other remote sellers given that this year’s overall sales tax numbers didn’t hit projections. Noem says state officials will continue to monitor the data coming to see how the Wayfair decision and the subsequent tax changes impact the state’s bottom line.
By law, the fiscal year 2019 surplus of $19.4 million was transferred to the budget reserve fund. The state’s budget reserve fund now has a balance of $145.1 million and the general revenue replacement fund has a balance of $44.0 million, for a total reserve of $189.1 million.
The $23.1-million includes $17.3 million of fiscal year 2019 general fund reversions and $5.8 million of unspent funds from special appropriations and carryover funding. Of the $17.3 million of 2019 general fund reversions, $15.3 million came from executive branch agencies, $1.0 million came from the Unified Judicial System, $0.7 million came from the Board of Regents, and $0.3 million came from the Legislature and constitutional offices.