This past week the budgeting process began to move to center stage. The Governor proposes a budget each December, but final budgeting authority rests with the legislature. The Joint Committee on Appropriations (JCA) that I serve on leads that process.

This past week, the Bureau of Finance and Management, from the executive branch, and the fiscal staff of the Legislative Research Council, from the legislative branch, each provided a detailed revenue forecast to the committee. The committee listened, reviewed the data they provided and asked lots questions. Then a subcommittee met again, asked further questions and decided what to recommend. For our current fiscal year, which ends June 30, 2023, the sub-committee recommended and the full committee adopted a revised revenue target of roughly $2.3 Billion.

Because that revised revenue target exceeds our original budget, and because of other savings, there is more than $300 Million available for one time spending. These dollars are limited for use on one-time capital projects. Projects likely to be financed with one-time money this year include

• a new prison for women in Rapid City,
• a land purchase and design to replace the prison for men in Sioux Falls,
• a major upgrade to the accounting system for state government and
• a variety of smaller projects.

We will be able to do many good things because of the surplus.

Using all of the financial data provided, the JCA also set the revenue target for the next fiscal year (FY’24) at $2.389 Billion, anticipating conservative growth of $3.8 percent above the previous year. With this revenue target, we have roughly $320 Million available to increase funding for our on-going needs. The new budget will be able to provide welcome increases in support for our schools, improve compensation for state employees, and consider several overdue funding adjustments to ensure that people are cared for and vital state work continues.

Strong revenues also provide the confidence that a tax cut is possible. Three tax cut ideas are actively under consideration. For the remaining three weeks of the session, a tax cut will be decided, the budget details will be discussed and debated, and the final pieces of the puzzle will be put in place.

There are many other bills being debated. It is a busy time in Pierre. I hope you are staying tuned-in.

To share your views with me please use my state email- John.Mills@sdlegislature.gov

In service to God and you.

Rep. John Mills
--Rep. John Mills

Post Date: 2023-02-24 12:23:07

Last Update: 2023-03-06 12:07:03