Two agencies say state government is expected to end the new fiscal year in the black.
South Dakota lawmakers passed a law earlier this year requiring the Bureau of Finance and Management and Legislative Research Council to provide revenue estimates for each budget year by July 30.
The agencies told lawmakers and the governor's office Monday that revenue is on track to exceed expenses through next June.
If either agency projects a budget shortfall of more than 2.5 percent, the new law requires them to propose ways to eliminate the gap. Any expected shortfall of 5 percent or more requires the governor to propose a solution.
Gov. Dennis Daugaard will provide the next revenue estimate in December and there will be another at the end of next year's legislative session.