Noem said state in ‘pretty good shape’ financially

KELOLAND.com Original

PIERRE, S.D. (KELO) — Financially, South Dakota is in “pretty good shape” but “we’re not out of the woods yet,” Gov. Kristi Noem said during Thursday morning’s news briefing.

It’s been challenging during the coronavirus pandemic, Noem said.

Although the state did not close businesses, long-term impacts include businesses that could close or suffer in the future because of COVID-19, Noem said.

While the sales tax revenue is down in the state, it’s only .3% less than the revised legislative figure of $4.4 million, Noem said.

Sales tax is one of the largest sources of revenue for South Dakota.

The state is seeing big impact in other areas of funding. Tourism tax revenue is down 3.1% year to date. The revenue is down 70% compared to last year, Noem said.

Gas tax revenue is down 14.4% compared to last year, Noem said.

One reason why the state may not be experiencing as much of a negative impact on sales tax revenue could be because stimulus money, Noem said

Tens of millions of dollars went out to individuals and businesses recently, which may be delaying the impact in the state’s bottom line, Noem said.

The state will not have a special session in June but will continue to monitor the situation, Noem said.

She said financial details for the state would be available at covid.sd.gov, though state websites have been down much of the morning.

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