South Dakota state government closed the 2012 budget year June 30 on a positive note, Governor Dennis Daugaard announced today.
The state general fund budget for Fiscal Year 2012 ended with increased revenues as well as lower expenditures than budgeted.
Actual revenue growth for 2012 was $24,002,181 higher than estimates adopted by the state Legislature in March. State agencies also spent $13.8 million less than appropriated. Additionally, the 2012 Legislature intentionally left $10 million unspent to replenish state reserve funds that were used to respond to Missouri River flooding and the mountain pine beetle infestation in 2011.
Combined, this means that FY2012 revenues exceeded expenses by $47.8 million.
"We continue to meet the goal of balancing the budget in a conservative manner without raising taxes," Gov. Daugaard said. "I'm pleased that FY2012 was closed successfully, and that South Dakota's economy has strengthened faster than was projected. The strength on which we ended FY2012 will help ensure that we maintain a structurally balanced budget in FY2013 while continuing to increase state investments in important areas like education, Medicaid, and public safety."
South Dakota's sales and use tax receipts, the state's largest revenue source, continued growing in recent months as the state's economy moved forward, even in the wake of global economic uncertainty. Sales and use tax collections in FY2012, ending June 30, totaled $744,413,638, which was 4.82 percent -- or $34.2 million -- above the previous year. Collections from the sales and use tax accounted for 58 percent of general fund receipts in FY2012.
Other notable revenue increases came from the bank franchise tax and the contractor's excise tax, which grew $25 million and $17.3 million, respectively, over FY2011. Video lottery was the only major general fund revenue to decline in FY2012, a $7.9 million decrease compared to last year. Total state general fund receipts were $1,282,385,503 for the recently ended fiscal year. Ongoing receipts to the general fund totaled $1,235,903,897.
Despite an increased need for state government services and cuts that were included in the FY2012 budget, state agencies remained well within their appropriated budgets in FY2012. Collectively, the three branches of state government spent $13,847,673 less than appropriated.
After spending $20.2 million of budget reserves on emergency flood and mountain pine beetle suppression expenses during the year, South Dakota state government ended FY2012 by transferring $47.8 million to the Budget Reserve Fund, as required by law. The state's Budget Reserve Fund now has a $71,093,284 balance, and the Property Tax Reduction Fund has a $63,626,269 balance.
The combination of those two funds, totaling $134,719,553, represents a combined reserve of about 11.2 percent of total general fund spending for FY2012.