PIERRE, S.D. (AP) — South Dakota lawmakers on Tuesday set a tax revenue estimate for the state budget that anticipates $92 million more than Gov. Kristi Noem laid out ahead of the legislative session.
Amid better-than-expected sales tax revenue, the Legislature’s Joint Committee on Appropriations adopted a revenue projection of $2.067 billion for fiscal year 2023, which starts on July 1. The projection will allow lawmakers more say in how state funds are used in the next year, while potentially leaving a smaller margin for the governor to work with.
“These are conservative estimates,” said Republican Rep. Chris Karr, who is the committee’s co-chair.
However, his Senate counterpart, Republican Sen. Jean Hunhoff, voted against the revenue projection along with two other Senate Republicans. They had pushed for lower projections, arguing that the billions in federal pandemic relief were a temporary windfall that will not last.
The revenue projections give lawmakers a baseline to craft the state budget, which is due to be finalized next month. It is expected to top $6 billion once funds from the federal government and other sources are factored in.