Facing a budget shortfall, SD just got a financial boost

PIERRE, S.D. (KOTA TV) – The coffers for the state of South Dakota could soon get a boost.

Gov. Dennis Daugaard delivers his state of the state address to a joint session of the 92nd South Dakota Legislature, Tuesday in Pierre.

And considering the bad news Gov. Dennis Daugaard delivered first in his state of the state address Tuesday, the boost in revenue is sorely needed.

The bad news the governor first delivered is that state revenue is down another $5.8 million from what he reported to the Legislature in December.

That December estimate was $26 million.

He attributes part of the problem to online companies like amazon, who don't charge sales tax.

It is estimated that the state loses out on about $35 million in sales tax revenue from online companies; 27 percent from Amazon alone.
But that is changing.

“The state has reached an agreement with amazon to collect and remit sales tax in south Dakota," Daugaard announced to lawmakers.
Amazon will start to voluntarily collect sales tax Feb. 1; and then start sending it to the state starting in late March.

State Senators Jeff Partridge and Terri Haverly both see the Amazon deal as great news; and hopefully other online retailers will follow their lead.

Revenue, the governor said, isn’t the only issue facing the state this year.

The ever-increasing problem of methamphetamine addiction has to be tackled.

Two bills already filed to combat meth include a prevention program aimed at teens, specifically Native American; and increased emphasis on intensive treatment services.

The governor says he will also travel to Washington next week to work with the federal government concerning a fix to Medicaid funding. Daugaard believes Washington should do more in this area.