South Dakota’s actual sales and use tax receipts ended FY19 ($9.9M) lower than South Dakota legislative revised projections. Total ongoing receipts were ($4.4M) lower. This was offset by one-time FY19 receipts being $6.7M higher than projections.
South Dakota Bureau of Finance and Management noted sales tax finished the year on a soft note, some weather related as well as weakness and uncertainty in the Agricultural sector. In addition, contractors excise tax was impacted by wet spring and delayed construction activity across the state.
State agencies demonstrated fiscal responsibility to finish the fiscal year, with $17.3M in FY19 general fund reversions and $5.8M of unspent special appropriations and carryover funding.
By law, the FY19 surplus of $19.4M was transferred to the budget reserve fund which now has a balance of $145.1 million, and the general revenue replacement fund has a balance of $44 million, for a total reserve of $189.1 million.
The Legislature’s Joint Appropriations Committee is scheduled to meet on July 22 to discuss the 2019 revenue and expenditures, as well as hear an update on 2020 fiscal year revenue projections.