March Revenue Numbers Come Up Short

Apr 13, 2017

State economist Jim Terwilliger and Governor Dennis Daugaard
Credit Kealey Bultena / SDPB

For two straight months state general fund collections are coming in lower than expected.

That’s even after lawmakers revised budget estimates during session.
 
For just the month of March, collections were $3.9 million dollars lower than expected. Revenue numbers are continuously marred by the state’s lagging farm economy.
 
Jim Terwilliger is with the state Bureau of Finance and Management. He says it’s not just the state sales tax that’s taken a hit.
 
“It’s a combination of some other sources of revenue," Terwilliger says. "It’s a little bit from sales tax, we’re seeing some softness in our insurance company tax collections, and then unclaimed property is another revenue source where we’ve seen some—it be below estimates. So it’s not just sales tax. It’s a few other sources of revenue.”
 
The state’s economist says February and March are low spending months. Terwilliger says he hopes with the seasonal change… activity picks up and numbers rebound.
 
According to the April economic update, the state’s unemployment rate is still second lowest in the nation. The state’s non-farm employment and income is seeing continued growth.

To view the most recent South Dakota Economic and Revenue Update, click here.