Pioneer Staff Report
PIERRE -- South Dakota state government ended the fiscal year on June 30 with a balanced budget and without using any state reserve funds, Gov. Mike Rounds announced today.
More than $101 million in federal stimulus money was used to help balance the $1.1 billion portion of the state budget that is funded with general tax collections, the governor said.
South Dakota lawmakers anticipated a $3.4 million deficit when the legislative session ended in March, which would have required the use of reserves to balance the budget, Rounds said. But the budget was balanced without tapping reserves because tax collections were about $2.5 million higher than earlier expectations and state agencies spent about $911,000 less than they were authorized to spend, he said.
Tax collections early in the budget year fell far below expectations, but rebounded in the final few months before June 30, the governor said. "Toward the end of the year, our revenue picture started to improve a little bit."
Jason Dilges, the governor's budget director, said spending was managed to balance the budget without a deficit or surplus. If the state ended the year with a surplus, that extra money would have had to be given to the federal government because stimulus money cannot be used to build state reserves, he said.
Rounds said spending was reduced by not filling some jobs, delaying some equipment purchases and limiting state employee travel to out-of-state meetings.
Rounds said Friday he believes the state will make it through the current year without touching its two reserve funds, which now hold more than $107 million.
Rounds said he hopes state revenues increase as the economy recovers, but he expects any recovery to be slow. He noted that South Dakota's unemployment rate has been dropping gradually, and now is at 4.5 percent, he said.
PIERRE -- South Dakota state government ended the fiscal year on June 30 with a balanced budget and without using any state reserve funds, Gov. Mike Rounds announced today.
More than $101 million in federal stimulus money was used to help balance the $1.1 billion portion of the state budget that is funded with general tax collections, the governor said.
South Dakota lawmakers anticipated a $3.4 million deficit when the legislative session ended in March, which would have required the use of reserves to balance the budget, Rounds said. But the budget was balanced without tapping reserves because tax collections were about $2.5 million higher than earlier expectations and state agencies spent about $911,000 less than they were authorized to spend, he said.
Tax collections early in the budget year fell far below expectations, but rebounded in the final few months before June 30, the governor said. "Toward the end of the year, our revenue picture started to improve a little bit."
Jason Dilges, the governor's budget director, said spending was managed to balance the budget without a deficit or surplus. If the state ended the year with a surplus, that extra money would have had to be given to the federal government because stimulus money cannot be used to build state reserves, he said.
Rounds said spending was reduced by not filling some jobs, delaying some equipment purchases and limiting state employee travel to out-of-state meetings.
Rounds said Friday he believes the state will make it through the current year without touching its two reserve funds, which now hold more than $107 million.
Rounds said he hopes state revenues increase as the economy recovers, but he expects any recovery to be slow. He noted that South Dakota's unemployment rate has been dropping gradually, and now is at 4.5 percent, he said.
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