SIOUX FALLS, S.D. (KELO) — South Dakota had a nearly $86 million budget surplus at the end of fiscal year 2021, but other states, including neighbors had some pretty big surpluses too.
North Dakota Gov. Doug Borglum said in July his state should have a $1 billion surplus in the general fund for the end of the 2019-2021 biennium. The state has $400 million more in general fund revenue than it projected.
Iowa Gov. Kim Reynolds said the state closed FY2021 with a general fund surplus of $1.238 billion.
The amount is $751 million more than the prior estimate of $487 million, according to the Iowa Legislative Services Agency (LSA). The state ended the fiscal year with net general fund revenue of $8.8 billion which is a 9% increase over the estimated $737 million.
Minnesota is already projecting a $7.7 billion general fund budget surplus for the FY2022-2023 biennium. The amount includes a $5.5 billion gain for 2022-2023.
The Minnesota surplus estimate does not include an additional $1.1 billion in federal money from the American Rescue Plan.
The Minnesota Management and Budget office said in a Nov. 21 report strong growth in income, consumer spending and profits drove “extraordinary” revenue growth in FY2021.
A Nov. 10 report on from October, a month in FY2022 shows a continued trend in growth.
Net general fund revenues totaled $1.994 billion in October 2021, according to MMB. That’s $87 million or 4.5% more than the forecast in February. Year to date fiscal year receipts were $7.968 billion or $744 million more the the forecast in February.
The state finished FY2021 with $2.67 billion more in revenue than projected.
All states received at lest $1.2 billion in COVID-19 relief money in FY 2021 which impacted its budgets.
Per person, South Dakota and North Dakota received the largest share per person of federal aid compared to Minnesota and Iowa and many other states.
The Rockefeller Institute of Government said in August 2020 that $1.2 billion in federal COVID relief money broke down to $1,413 per person in South Dakota, $396 per person in Iowa and $1,640 per person in North Dakota. Minnesota’s $2.1 billion broke down to $388 per person.
In the fall of 2020, many states were discussing the need to cut budgets, in large part, because of declines in revenue.
In 2020, Minnesota froze hiring of non-essential employees and eliminated some department of corrections positions. Gov. Tim Walz also cut his cabinet’s pay by 10%.
South Dakota did not make any major changes to its budget in calendar year 2020 despite Noem saying there may need to be changes because of COVID-19. The state passed FY2021 budget in March of 2020 when Noem said changes may be needed in the upcoming months.
Reynolds had proposed a tax reform plan to cut income tax but announced in early 2021 she was delaying that plan because of the pandemic.
Like South Dakota, North Dakota did not make major changes to its budget during the calendar year of 2020.The budget for FY2021-2023 had increased spending including a $200 million increase in general fund spending.