The State of South Dakota closed the 2021 budget year June 30, 2021, with a surplus of $85.9 million and a total of $301.8 million in its budget reserve.
South Dakota State Employees Organization executive director Eric Olilla says the increase in reserves comes as state employees are having to pay more for their health insurance.
Olilla says appropriators knew they were “low balling” state employees when they were working out the budget back in March.
While the state having a large “rainy day fund” may seem like a good idea to many, Olilla says the nearly 86-million surplus dollars could have been much better spent.
South Dakota’s year over year growth in fiscal year 2021 was $274.2 million or 15.7%, compared to a ten year average of 4.6%. Sales and use tax, which is the state’s largest revenue source, finished $26.6 million above estimates and grew 14% over the prior fiscal year, compared to a ten year average of 5%.
The nearly $302 million ($301.8 million) in the State’s budget reserve is an increase of over $100 million from the previous fiscal year.
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