PIERRE, S.D. (AP) - South Dakota lawmakers projected Thursday that they will have a little bit more money available than previously expected when they craft the state budget this session.
The Legislature’s Joint Committee on Appropriations set revenue projections that are slightly above collections anticipated in Republican Gov. Kristi Noem’s budget plan from January. The budget-writing panel set a general fund revenue target of roughly $1.7 billion for the upcoming 2020 budget year that starts July 1, up about $5.6 million from Noem’s budget.
“We are the stewards of the resources and the people’s dollars in South Dakota,” said Republican Rep. Jean Hunhoff, a panel member.
Committee Co-Chairman Chris Karr said it’s a very “fiscally conservative and responsible” projection. He said it allows for a buffer from concerns over the agriculture industry or a potential economic slowdown.
Noem, in her first budget plan as governor, proposed a nearly $1.7 billion general fund spending plan for the 2020 budget year. She recommended roughly $54 million in new ongoing spending, including 2.5 percent increases for education, Medicaid providers and state workers.
Noem said she feels passionately about her budget proposal and that her administration worked hard on it to fund what she believes should be priorities in South Dakota.
“We were responsible with it. We balanced our budget without raising taxes,” Noem told reporters. “We also funded providers, educators, making sure that we’re taking care of people in the state, but also going after crime and meth, which is incredibly important.”
The governor said she has encouraged legislators to be conservative and that “we don’t spend money we don’t have.”
Noem’s plan for next budget year also calls for spending about $1.75 billion in federal funds and more than $1.4 billion in other state money, totaling more than $4.8 billion.
The Joint Committee on Appropriations also established a roughly $1.65 billion revenue target for the current budget year, about $3.7 million above Noem’s plan.
Democratic Sen. Reynold Nesiba said he’s confident that officials have underestimated revenues for both years, calling it a “conservative process.” Lawmakers will reshape the current budget and approve the next one during the 2019 session.
Noem has proposed emergency appropriations of more than $28 million for the current state budget year, including $7.4 million to expand the Jameson Annex at the South Dakota State Penitentiary and roughly $3.9 million for a National Guard Readiness Center.
She’s also calling for one-time spending including $3.8 million for Medicaid providers, $5 million for nursing home grants and $5 million for expanding rural broadband.
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