South Dakota closed the 2022 budget year June 30, 2022, with a surplus of $115.5 million. Total general fund revenue for fiscal year 2022 finished $72.3 million higher than adopted estimates, and the state general fund budget ended with expenses $43.2 million less than budgeted.
Governor Kristi Noem says South Dakota state government operates conservatively, has the strongest economy in America and has a strong financial position to match. She says low regulation, low tax burden and business friendly policies are still the recipe for economic success.
Actual general fund revenue for fiscal year 2022 was unexpectedly higher than recent adopted forecast estimates. In total, revenue finished above the adopted forecast by $72.3 million, or 3.3 percent. Sales and use tax, which is the state’s largest revenue source, finished $36.6 million above estimates and grew 12% over the prior fiscal year. A combination of all other sources of general fund revenue finished the fiscal year $35.7 million above legislative estimates.
South Dakota’s personal income growth led the nation again in the first quarter of 2022. South Dakota has been a leader in this metric since the start of the COVID-19 pandemic. People continue to move to South Dakota as our net inbound migration was ranked second in the nation, while South Dakota’s 2.3% unemployment rate is among the lowest in the nation and lower than before the pandemic.
By law, the fiscal 2022 surplus of $115.5 million was transferred to the state’s budget reserves. The state’s reserves now total $422.6 million or 20.5% of the fiscal year 2023 general fund budget.
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