Press "Enter" to skip to content

BFM: Absent Biden Bucks, State Revenues to Decline 1.5% in Next Fiscal Year

Now that federal stimulus dollars are running out, Kristi Noem’s “Strongest Economy In The Nation™” is going to see sales and use tax and total general fund revenues drop 1.5% from this fiscal year to FY2023. So says the Bureau of Finance and Management in its revenue projections presented yesterday to Joint Appropriations:

Bureau of Finance and Management, Revenue Forecasts, 2022.02.13
Bureau of Finance and Management, Revenue Forecasts, 2022.02.13.

The state is still going to pull in 2.82% more money in FY2022 and 1.34% more money in FY2023 than Noem predicted in her December budget address:

BFM, revised revenue projections for FY2022 vs. Governor's earlier recommendation, presentation to Joint Appropriations, 2022.02.14.
BFM, revised revenue projections for FY2022 vs. Governor’s earlier recommendation, presentation to Joint Appropriations, 2022.02.14.
BFM, revised revenue projections for FY2023 vs. Governor's earlier recommendation, presentation to Joint Appropriations, 2022.02.14.
BFM, revised revenue projections for FY2023 vs. Governor’s earlier recommendation, presentation to Joint Appropriations, 2022.02.14.

Appropriations member Representative Chris Karr wants to gamble that we can squeeze one more banner year out of the Biden bucks and budget for $92 million more in FY2023 than the Governor’s original recommendation rather than BFM’s projected $27 million more. But as BFM told Joint Appropriations yesterday, the record increases in revenue that the state has seen during the coronavirus pandemic are “not sustainable” “as direct federal stimulus to consumers fades.”

Gee, you’d think the “Strongest Economy in the Nation™” wouldn’t need Uncle Sam to sustain its growth.

7 Comments

  1. Porter Lansing 2022-02-15 13:51

    A spiffy pie chart projection of SD revenues, including marijuana taxes over the next eight years would be remarkable, I’d predict.

    BTW, still waiting for the “Sorry, PL. I was wrong.” statements from the thousands of SoDakers that predicted legal weed would destroy Colorado.

    Last year CO businesses sold over two BILLION bucks worth of weed with the same tax rate as what your state is proposing.

    That’s roughly $443 million in taxes to spend making living in Colorado more fun than living in another place.

    So far, Jesus hasn’t come down and stopped it, either.

  2. Arlo Blundt 2022-02-15 15:28

    Well…I may be dense but I don’t understand where “Unclaimed Property receipts” of 40 million per year originate. Can anyone help me?? It’s a big number.

  3. Arlo Blundt 2022-02-15 20:22

    Thank you Porter Lansing…I’m trying to get my dense head around the fact that South Dakotans and the companies they own leave 40 million dollars worth of paychecks, reimbursements, stocks and bonds, and property deeds laying around in bank accounts and safe deposit boxes with no heir identified, every year. There’s a lot more money out there in this bleak, poverty afflicted state than I would have thought without your assistance.

  4. John Dale 2022-02-15 20:35

    We run in the black year over year.

    This is a huge windfall and it’s great that we’re not using this money to catch up, and have an opportunity to invest in the future of SD.

    Cybersecurity is good as long as it’s not a shady proxy project to push 5G. That would be more like offensive cyber weapon deployment.

    IoT is a non-starter in this regard .. so dumb to roll it out willy nilly like this.

  5. larry kurtz 2022-02-15 20:46

    Fermilab boasts a $2 million annual economic impact and naming a dark matter lab 5000 feet below Lead after a lecherous, usurious billionaire from Sioux Falls sticks in plenty of craws in South Dakota yet real science is getting done there. The Homestake Mine represents 8000 feet closer to the geothermal potential capable of powering much of the region. But South Dakota is dumbing down requirements for math teachers because graduates flee the state where the SD Republican Party ridicules educated people and perennially threatens funding for public radio.

    Spearditch actually made Outside Magazine’s list of best mountain towns but was completely outstripped by Taos, Durango, Telluride and Bozeman.

Comments are closed.