Lawmakers are updating the current state budget and finalizing numbers for the next fiscal year. This year’s spending will go down by $167 million dollars.
Representative Chris Karr is the co-chair of the appropriations committee. He says the drop in spending does not require a cut in programs largely - because of money from the federal government.
“We had the coronavirus relief fund dollars that came in last year,” Karr says. “We were able to utilize those for a lot of the state’s needs and cover expenses. We were also able to save some general funds in that process.”
Lawmakers approved $50 million dollars for a needs-based college scholarship program, a long-time Democratic priority. They also approved $100 million dollars for broadband expansion and $5 million dollars for a new state airplane.
Republican state Senator Jean Hunhoff says this year was an appropriations year like she’s never seen before.
The state will spend 1.8 billion dollars in general funds, 1.8 billion in federal funds and 1.4 billion in other funds.
“Totaling 5.1 billion in total funds,” Hunhoff says. “That is an awful lot of dollars. But with those dollars we are going to do great things for the people of South Dakota.”
The big three—education, state employees and community service providers--will see a 2.4 inflationary increase in pay.