SIOUX FALLS, S.D. (KELO AM) - State sales tax figures are not keeping up with budget projections and a report last week indicates South Dakota is running about $10 million short.
Governor Daugaard says he's reluctant to dip into the reserves to make up any budget gap because that would impact the state's "Triple A" bond rating.
Daugaard says the rating has helped school districts save a lot of money. He the Intercept Program, established by Lieutenant Governor Matt Michels, allows schools to use the state's rating as opposed to the district's financial footing. He says that's saved schools over $4 million dollars in just one year.
Daugaard says it's beneficial to keep the state's high rating. He says the rating also lets residents know that the state is being run responsibily. He says agencies who measure financial stability and strength provide an outside check on how the government is being run.
Daugaard says he has asked state agencies to see where they can cut. He hopes they can find dollars that they can return to the general fund when the fiscal year ends June 30th. He says the state is going to need that effort to cover the shortfall.
In the end, he hopes to avoid leaning on state reserves. But he does say "its possible." He doesn't want to drop below a 10% reserve condition. Daugaard says while reserves went up a little last year, they are just a bit over 10% of the budget.
(Thanks Jerry Oster, WNAX Yankton)