Gov. Noem said the state is preparing for a significant budget shortfall due to the COVID-19 pandemic.
Noem said initial revenue data from the Department of Revenue and Bureau of Finance and Management show that the state is down $18.1 million in general fund revenue.
Bigger hits to the state economy are being masked by increased spending at grocery stores and hardware stores, Noem said, noting that hotels, restaurants and clothing stores have been hardest hit by the pandemic.
Sales tax was up 4.5% compared to a year ago (page 1), it is down 0.9% compared to the Legislative Revised estimate for the month of April (page 4).ā
Selected Significant Decreases (Year over Year)
- Apparel and Accessory Stores -41.1%
- Hotels, Rooming Houses, Camps, and Other Lodging Places -35.9%
- Eating and Drinking places -21.8%
Selected Significant Increases (Year over Year)
- Electric, Gas, and Sanitary Services +32.3%
- Building Materials, Hardware, Garden Supply +20.4%
- Food Stores +17.6%
Lottery has been significantly impacted by COVID-19. Many operators closed down, while others limited the number of players allowed to use their machines. This has led to revenues being down 40.1% compared to a year ago (page 1). 40.8% or $4.3 M compared to the Legislative Revised estimate for the month of April (page 4). Lottery revenues are down 3.6% or $3.5M Year-to-date compared to the Legislative Revised estimate through April (Page 5).
CET (Excise Tax) is up 13.3% compared to a year ago, it is up $0.3 M or 4.2% compared to the Legislative Revised estimate for the month of April and $0.2M or 0.2% year-to-date.
Insurance company tax is up $3.6 M compared to a year ago and $0.5M compared to the Legislative Revised estimate for April. YTD this category is up 6.8% compared to the Legislative Revised estimate.
Unclaimed property YTD is down $4.0M compared to FY2019, but is 5.9% greater than the Legislative Revised estimate.
License, Permits, and Fees is down $22.7M from a year ago and is down $9.6M year-to-date compared to the Legislative Revised estimate. Securities fees were not transferred to the general fund this month, the category should correct next month and should align more closely to projections.
Bank Franchise Tax is down $7.9M form a year ago and is down $4.2M year-to-date compared to the Legislative Revised estimate. The IRS extended the deadline for tax returns to July 15. State Bank Franchise tax filing deadlines have historically been extended for banks when an IRS extension is provided.
In total, ongoing general fund revenues were $18.1M lower than the estimate for the month of April. Ongoing revenues are down $5.6M year-to-date vs. the Legislative Revised estimates.
In addition to the general fund revenues, Tourism Tax Receipts are down by 28.5% compared to April of last year.
