Earlier this week, state officials released tax receipts for collections made at the end of January.
Those collections reflect the month of December, a high shopping season.
Revenues are over $18 million than currently projected.
Governor Dennis Daugaard says he’s cautiously optimistic about the numbers.
“The admonition I will always be giving to the legislature is let’s be careful and not be too rosy in our projection,” Daugaard says. “We can always spend the money after it arrives. If we project something that doesn’t show up then we end up having to cut the budget. That’s a bait and switch from the vantage point of someone who is expecting payments and then is surprised when they are suddenly cut.”
Daugaard says if the state collects more than anticipated that that money goes to increasing state employee wages.
On Monday, two of the state’s economists will meet with the appropriations committee to set revenue projections. They’ll adjust the current fiscal year, and set projections for next fiscal year as well.
Once revenues are set, lawmakers will start crafting the budget.