PIERRE, S.D. (AP) - South Dakota lawmakers are projecting that tax collections for the current and upcoming fiscal years will be millions of dollars lower than previously anticipated.
A legislative budget sub-panel recommended projections Monday that are significantly lower than those Gov. Dennis Daugaard proposed in his December budget address.
Lawmakers are looking at about $27.8 million less revenue than projected in December for the upcoming 2018 budget cycle that begins July 1 and about $25.3 million less in ongoing receipts for the current cycle.
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State Economist Jim Terwilliger says the causes include low inflation, less spending in the farm economy and e-commerce transactions that avoid state sales taxes. The recommended 2018 revenue estimate is $1.59 billion.
The Legislature’s Joint Committee on Appropriations is expected to formally decide Tuesday how much money can be expected.
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