At the S.D. Legislature with District 16 Rep. David Anderson

Posted February 19, 2019 at 4:31 pm

This week the Legislature set the revised General Fund revenue projections for the balance of the 2019 fiscal year. The fiscal year started on July 1st 2018 and ends on June 30th 2019. Last February the 2019 revenue estimate was set at $1,641,545,684. With seven months of actual revenue collected, we have revised the 2019 estimate to $1,645,588,238. That’s an increase of $4,042,554 or .246%. To put that in context, if your salary is $50,000/year it’s an increase of $123. Pretty good estimating, in my opinion!

The revenue estimate for fiscal year 2020 (which starts July 1st 2019) was also set. It will be $1,701,244,640. That’s an increase of $55,656,402 or about 3.4% and reflects the expected normal growth in the State’s economy. As I’ve told you in prior reports, the State sales tax is by far the largest component of our annual revenue. Of the $1.7 Billion revenue estimate, sales tax accounts for 63% or $1,075,218,900.

The next three largest revenue sources are: Lottery at $126,020,257; Contractor’s Excise Tax at $121,485,109; and Insurance Company tax at $92,808,766. Those three add up to $340,314,132 or 20% of the total.

The remaining 12 primary sources of tax revenue add up to only 17% of the total. These include taxes such as Bank Franchise Tax, Tobacco and Alcohol Taxes, Investment Income, Unclaimed Property and Licenses, Permits and Fees, to name a few.

These revenue estimates become the basis for setting the expenditure budgets for all the different departments and agencies of State Government. Generally, the three areas that are most closely watched and debated are funding for education, Medicaid providers and State employees.

The Governor’s Budget proposal is suggesting a 2.5% increase for Education, Medicaid providers and State employees. The State Employee Health Insurance Plan will also get $8.6 million to keep it actuarially sound. Over the next few weeks the Legislature will be discussing the Governor’s proposals and making the final decisions for a balanced budget.

Please keep in mind that these numbers reflect only the General Funds of the State. Added to these are Federal Funds and Other Funds, making the total State Budget about $4.8 Billion.

There’s lots of other activity on many bills working their way through the Committee and Floor debate process. Many of these are reported on the various media outlets. Remember, you can always follow the debates on SDPB.org. You can also look up all of the bills on the Legislative website, SDLRC.gov.

Please continue to contact me with your comments and suggestions. My email address is David.Anderson@SDLegislature.gov.

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