Lawmaker: Key Budget Areas Likely Flat For Next Fiscal Year
PIERRE, S.D. (AP) – A key House lawmaker says that he anticipates lower-than-expected state revenues mean flat funding for education, health care providers and state workers in the upcoming budget year.
Gov. Dennis Daugaard in December had proposed modest 1 percent increases in those areas for fiscal year 2018. But, House Committee on Appropriations Chairman David Anderson said Thursday that lawmakers can’t spend money they don’t have.
Lawmakers last month settled on state revenue targets significantly lower than those Daugaard included in his December budget address.
State tax collections have been buffeted by low inflation, less spending in the farm economy and e-commerce transactions that avoid sales taxes, the state’s main revenue source.
Bureau of Finance and Management Commissioner Liza Clark says that the governor’s priority is a balanced budget.