Projections Predict 2018 Budget Year Deficit
S.D. Could Have $12.8 Million Deficit
New long-range budget forecasts from Gov. Dennis Daugaard’s administration show South Dakota could have a $12.8 million budget deficit in fiscal year 2018.
The long-term budget projections released on Friday are part of Daugaard’s quest to improve South Dakota’s rating among credit rating agencies.
The new tools will allow lawmakers to look past the budget cycle at hand when making financial decisions. Under the projections, tax receipts are expected to grow from $1.476 billion in fiscal year 2014 to $1.548 billion in fiscal year 2018.
But spending is expected to grow from $1.466 billion to $1.561 billion in the same period. Daugaard says the projected deficit is “something we’re going to have to adjust to.”
Joint Appropriations Committee Chairman Justin Cronin says the new projections will help lawmakers plan better.