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Inflation, Stimulus Save State Budget from Sales Tax Shortfall

A good chunk of South Dakota’s $115.5-million budget surplus for Fiscal Year 2022 came from collecting $36.6 million more in sales tax than expected.

But according to the Legislative Research Council, that growth didn’t come from South Dakotans buying more stuff. In a presentation to the Joint Appropriations Committee on Wednesday, the LRC noted that consumer spending in South Dakota actually shrank by 1.8% in FY2022. The state hauled in 12% more sales tax from July 2021 through June 2022 only because of inflation and federal stimulus:

Legislative Research Council, "JCA Revenue Update—July 2022," presented to Joint Committee on Appropriations, 2022.07.27, slide 12.
Legislative Research Council, “JCA Revenue Update—July 2022,” presented to Joint Committee on Appropriations, 2022.07.27, slide 12.

The LRC anticipates that South Dakotans will buy even less stuff in Fiscal Year 2023, and the hoped-for 4% increase in sales tax revenue will again come entirely from higher prices and remaining federal stimulus:

LRC to JCA, 2022.07.29, slide 12.
LRC to JCA, 2022.07.29, slide 12.

Hmmm… you’d think the best, strongest economy in the country would have people buying more stuff, not less.

None of us like higher prices, but right now, the State of South Dakota is capitalizing on those higher prices by taking more money out of your pocket right along with the profiteering corporations, as well as padding its budget with ongoing federal stimulus.

Governor Noem may complain a lot about inflation and federal spending, but she’s not about to do anything to stop them.


  1. Guy 2022-07-29 13:04

    Cory, it was the SAME THING in 2010 when Kristi blamed Stephanie for supporting the Obama Stimulus that saved South Dakota’s economy and allowed Governor Rounds and the state legislature to balance the budget. But, don’t expect Kristi to give President Biden any credit for this. Stimulus money is “evil” in her eyes, but, she’ll gladly take it under the table.

  2. grudznick 2022-07-29 13:35

    We have The Strongest Economy by most measures and need to stop taking the fake printed and bogus stimuli money.

  3. Guy 2022-07-29 13:49

    Ok Grudz, by all means live in your own fairytale land if it makes you feel comfortable.

  4. All Mammal 2022-07-29 14:09

    I live in another world where I see my people struggle. I see people sleeping in the park along the creek. I know mothers working their butts off to try to be eligible to rent a run down shack from some holier than thou slum lord. My good friend even was required to write a letter to the property manager describing why she should even be considered to be a tenant. Who can afford first month and last month’s rent plus $1200 security deposit up front? Plus to even look at the place, they have to pay a non refundable fee and pay for all the occupants’ background check. Non refundable, of course. I suspect it is a scam and they don’t even have places for rent and only intend to take the $40 a person fee, along with the profits they will gain from selling all the applicant’s personal information. If you get a couple hopefuls a day, your scheme is rolling in serious dough. I have had entire families sleeping in my alley. An elderly woman has been camping out in front of my house in her vehicle for over 2 weeks. Tell me how prosperous your people are, Kristi Noem. Go ahead. Come on down and open your fat mouth. Betcha won’t. You keep it up letting your spindly fingered, fat friends rake families and elders over the coals. Take a look 50 miles to the southeast, tell my folks down there how high the cotton is. Can’t even forage for food because its all toxic. Sure can’t grow hemp and make school shoes and notebook paper. Get a life, Gov Kristi.[…]

  5. Cory Allen Heidelberger Post author | 2022-07-29 14:12

    All Mammal, Governor Noem tells us that South Dakota’s economy is doing much better than the national economy. How can it be, then, that your people in this great economy can’t find decent housing and basically have to beg landlords to rent to them?

  6. Cory Allen Heidelberger Post author | 2022-07-29 14:14

    Grudz, I think you missed the point. Look at the first bar chart again. South Dakota’s net growth in sales tax revenues would have been more than half less the reported net if the federal government hadn’t been handing us all those stimulus dollars to prop up our spending.

  7. All Mammal 2022-07-29 14:41

    The reason my homegirl had to write the letter begging to move into a rental was because her 16 year old son caught a felony when he was 12. He has been on the straight and narrow since but at 12, kids have no concept of how being a felon will obstruct every goal they will have in life. He should have been punished with community service and no internet or electronics (and a whoopin). That would have actually been an age appropriate consequence. The kid was charged at 12 when a teacher at his school brought her brand new iphone to school and left it on the cafeteria table on accident. A group of juvenile delinquents took it. The teacher called the cops who tracked the phone and busted the boys riding their bikes back from the gas station. Since it was a thousand dollar phone it fell into the felony category and the teacher pressed charges against the students. My friend’s son had a bandana in his pocket when they got arrested, so he is now and forever will be considered a gang member on his permanent record. And now they struggle to find housing that will admit a felon, all because of a childhood blunder and an over zealous, forgetful teacher. Might not have been that way if they weren’t dark complected or if they knew people in high places. I struggle not to go that route. I told her I would move her family to Colorado before she ends up losing her boys to the hoosegow. I sound like Larry Kurtz when I tell her get out. Get out now while you don’t have to see your kids through glass. Get out now before the SD government suspects you are concealing a pregnancy and won’t let you leave.

  8. Guy 2022-07-29 15:21

    All Mammal: “Get a life, Gov Kristi.[…]” All Mammal, Kristi HAS a life. We pay her to live the life of a queen in total luxury from her fenced in palace with the sauna near Pierre and a fancy plane to fly away on excursions to five-star resorts to collect millions more dollars for her political climbing ladder career while your neighbors work their butts off to live in rundown apartments and mobile homes. So, yes: Kristi has a luxurious life and we all PAY for it.

  9. grudznick 2022-07-29 17:14

    Let this all be a cautionary tale for our future fellow citizens of all ages and even those not yet born:

    Do not take “free” stimulus money and do not take other people’s property. grudznick speaks only the truth here that none may refute.

  10. Richard Schriever 2022-07-29 18:07

    grudz – “We have The Strongest Economy by most measures…..” is not the truth. You do not speak it.

  11. grudznick 2022-07-29 20:01

    It is known that the Council of the Legislatures Research does the bidding of Mr. Haugaard and those others who are insaner than most. grudznick loves when you libbie fellows trot out the tripe they spew as your references for a blogging.

    grudznick automatically wins the debates when the libbies sport the Council as a fact provider.

  12. Observer 2022-07-29 21:11

    grudz – who is the fact provider?

  13. DaveFN 2022-07-29 21:33

    According to KeloLand:

    “The two agencies that guide state government’s budgeting process delivered very different forecasts Wednesday.
    Neither one sounded promising.
    The governor’s Bureau of Finance and Management cautiously predicted only 0.4% growth in state general fund revenue for the budget year that began July 1.
    The Legislative Research Council meanwhile was more optimistic at 2.5%.”

    Sales tax growth is only one component of state general fund revenue, of course.

    Would like to see a set of bar charts parallel to those of the LRC from the governor’s BFM for the sales tax growth comparison. Can’t find any.

  14. Guy 2022-07-30 11:12

    Grudz, you are turning more “orange” by each blog post ranting how you are right, you own the “facts” and everyone else is wrong. I guess we are all “FAKE NEWS” including Cory!

  15. Arlo Blundt 2022-07-30 14:36

    Grudz–you don’t make the rules and you don’t follow them either….but you are consistent in your endeavor to round up all the goats. Your nihilist argument and simple solutions to all human foibles require no exercise of gray matter on your part. Perhaps you could relax if you bought a new Barko-Lounger with your Covid relief money.

  16. O 2022-07-30 21:27

    My dear grudznick, what makes the federal stimulus money more toxic than the “regular” payments SD extracts from the federal government to keep its budget propped up? Year-after-year, the wealth of blue states fills in the budget gaps of our “strongest economy in the nation”; should that be rejected as well (so that you can increase your fair share paying the costs of operating SD)?

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