Appropriators Get Updated Revenue Projections To Steer Budget Building

(WNAX) — The Appropriations Committees of the South Dakota legislature got updated revenue projections Wednesday and will use those to build the framework of their 2021 budget. Jeff Mehlhaff, senior fiscal analyst with the Legislative Research Council compared results with last year’s revenue forecast…

“I would like to point out that the LRC original FY ‘20 forecast was a billion 85-million and the revised FY ’20 forecast is a billion 87. So it’s a slight increase over my original forecast. And then the LRC FY ‘21 forecast is one billion 132-million.”
Mehlhaff says tax collections are fairly close to what they predicted…

“So we’ve got year-to-date collections of 670-point-one million dollars. My LRC original forecast, that I provided to you over a year ago at this point in time, projected we would have 666-point-eight million dollars collected year-to-date, so that is a difference of three-point-two million dollars lower than we are actually seeing so that’s a difference of point-four-nine percent from actual.”
Mehlhaff says the projection for next year shows a slight increase in tax revenues…

“Going forward in FY ’21, the model is forecasting a 1 billion 756.6 million dollars, which is a overall increase in about 2.3% and that’s accounting for the decrease we will have from tobacco users under 21 as well as that you lost from online Internet access.”
The overall estimates show about nineteen million dollars more for next year than Governor Kristi Noem used in her December budget address.