Governor To Offer Modest Spending Hikes In State Budget Plan

Gov. Dennis Daugaard says his upcoming budget proposal won’t include cuts, but lower-than-anticipated tax collections will only allow for modest spending increases during the 2017 legislative session.

The governor is to outline his spending priorities in a budget address Tuesday at the Capitol.

Daugaard tells The Associated Press that his plan for the upcoming 2018 budget cycle is “leaner” compared to some other years, but won’t require the spending cuts that the state faced early in his first term.

State revenues so far this budget year are about 3.6 percent below lawmakers’ projections, or about $20 million from July through October. Daugaard wants to use one-time money to plug an expected shortfall.

Lawmakers will reshape the current budget and approve the next one during the session that begins in January.

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