Gov. Rounds pleased with fiscal report Gov. Mike Rounds has announced that state�government ended the fiscal year on June 30 better than anticipated at the end of the 2003 legislative session.��
"Because revenue collections were better than projected and because state government agencies spent almost $7 million less in general funds than were budgeted," said Rounds, "the state was able to use less of the property tax reduction fund reserves than estimated."
In March, it was estimated that $26.0 million in one-time receipts from the property tax reduction fund would be necessary to balance the FY2003 budget. However, the 2003 fiscal year ended with one-time transfers of only $10.5 million from the state's property tax reduction fund, of which $9.1 million was used for the shortfall of ongoing receipts and $1.4 million was transferred to the budget reserve.
For fiscal year 2003, ongoing state general fund receipts were $874,644,477. This was $9.8 million more than the December forecast and $10.0 million more than was estimated during the 2003 legislative session. Of the general fund reversions, $4.3 million was due to a change in the federal medical assistance percentage, attributable to increased federal funding from the tax relief package passed by Congress earlier this year, and $1.7 million was due to reversions from the conservation reserve enhancement program.
South Dakota�state government ended fiscal year 2003 by transferring $1,355,714 to the budget reserve as required by law.��The state's budget reserve now has a balance of $40,680,675, and the property tax reduction fund ended the fiscal year with a balance of $65,810,732.
"In spite of the improving numbers we are seeing, the state continues to face financial challenges as we move into FY2004 and FY2005," Rounds said.��"South Dakota�still faces a $26.8 million structural deficit as we begin putting the FY2005 budget together this fall."