Despite that effort to draw in online sales tax -- the state budget is still falling short.
Gov. Dennis Daugaard delivered his budget address to the South Dakota Legislature Tuesday afternoon.
"We expect positive economic growth but need to be cautious given recent sluggish revenue growth, inflation is an important variable because inflation has a direct impact on the growth of our sales tax," Daugaard said
Governor Daugaard's administration is projecting a nearly $34 million shortfall. Daugaard says that means the state will need to spend less and possibly dip into the state's reserves.
"To put this in perspective, this 33.7 million dollars is about 2% of our general fund budget and about 7 tenths of one percent of our whole budget," Daugaard said.
Along with tweaks to the current budget, Daugaard is also making proposals for fiscal year 2019 which begins July 1st.
"Recommending $4.7 billion in total spending for 2019," Daugaard said.
The tight budget doesn't mean cuts everywhere. The governor is proposing to add more than $20 million in education spending, but schools wouldn't see an inflationary funding increase per student under the plan. Something top Democrats in Pierre don't agree with.
Most state workers won't see raises for the second straight year under Daugaard's plan.
Now it's up to the Legislature to reshape the current budget to meet the shortfall and approve the next one during the legislative session which gets underway in January.
The 2018 session is Daugaard's last one as governor due to term limits.
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