Historical South Dakota budget and finance information

---

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

---

The historical South Dakota budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding South Dakota's budget and finances, click here.

As published 2016

South Dakota budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AA+ (as of 2014)

Current governor: Dennis Daugaard

Financial figures

Total spending (state and federal funds): $3.9 billion (estimated for 2015)

Per capita spending: $4,530.16 (estimated for 2015)

Total state tax collections: $1.6 billion (2014)

Per capita tax collections: $1,885.02 (2014)

State debt: $7.7 billion (as of 2014)

Per capita state debt: $9,249 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in South Dakota

In South Dakota, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in South Dakota decreased by approximately $0.2 billion—from $4.1 billion in fiscal year 2014 to an estimated $3.9 billion in 2015. This represents a 4.9-percent decrease.

In South Dakota in fiscal year 2014, 80.6 percent of total tax revenues came from sales and gross receipts.

Education accounted for 35.6 percent of state expenditures in fiscal year 2015, while 20.3 percent went to Medicaid.

The South Dakota state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, South Dakota had the lowest state tax collections per capita, at $1,885.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
South Dakota	N/A	$1,296,748	$277,787	$24,819	$9,142	$1,608,496	853,304	$1,885
Minnesota	$836,743	$9,759,346	$1,314,463	$10,844,216	$374,133	$23,128,901	5,457,125	$4,238
Nebraska	$143	$2,303,952	$126,745	$2,430,755	$15,806	$4,877,401	1,882,980	$2,590
North Dakota	$3,026	$1,848,130	$227,245	$748,966	$3,293,068	$6,120,435	740,040	$8,270
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

South Dakota tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 80.6 percent of South Dakota's total state tax collections came from sales taxes and gross receipts.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
South Dakota	N/A	80.6%	17.3%	1.5%	0.6%
Minnesota	3.6%	42.2%	5.7%	46.9%	1.6%
Nebraska	0.0%	47.2%	2.6%	49.8%	0.3%
North Dakota	0.0%	30.2%	3.7%	12.2%	53.8%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of South Dakota's general revenues came from the federal government in 2013. That year, South Dakota received approximately $1.6 billion in federal aid, 39.0 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,864 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
South Dakota	$1,575,212	39.0%	4	844,877	$1,864
Minnesota	$9,141,995	26.4%	39	5,420,380	$1,687
Nebraska	$3,154,670	32.1%	26	1,868,516	$1,688
North Dakota	$1,529,135	19.0%	50	723,393	$2,114
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

South Dakota's total estimated government spending in fiscal year 2015 was $3.9 billion, which was the lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
South Dakota	$2,542	$1,347	$3,889	858,469	$4,530.16
Minnesota	$24,613	$10,601	$35,214	5,489,594	$6,414.68
Nebraska	$8,074	$2,908	$10,982	1,896,190	$5,791.61
North Dakota	$6,074	$1,674	$7,748	756,927	$10,236.13
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in South Dakota can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2014, Medicaid accounted for 20.3 percent of South Dakota's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
South Dakota	14.0%	21.6%	0.7%	20.3%	2.7%	14.5%	26.3%
Minnesota	28.2%	4.4%	1.5%	29.8%	1.5%	9.5%	25.1%
Nebraska	14.4%	23.5%	0.5%	17.6%	2.5%	7.6%	33.9%
North Dakota	15.8%	17.3%	0.1%	12.9%	1.6%	19.0%	33.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2010 and 2014, the share of the South Dakota state budget spent on higher education increased from 17.3 percent in 2010 to 21.6 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	14.0%	21.6%	0.7%	20.3%	2.7%	14.5%	26.3%
2013	14.1%	22.3%	0.7%	19.9%	2.5%	15.0%	25.5%
2012	14.3%	17.7%	0.8%	20.9%	2.7%	15.9%	27.7%
2011	16.3%	18.4%	0.8%	20.7%	2.6%	15.0%	26.1%
2010	15.4%	17.3%	0.8%	21.7%	2.8%	13.7%	28.5%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Fiscal year budgets

See also: Historic South Dakota budget and finance information

Fiscal year 2016

See budget bill: South Dakota Budget in Brief, Fiscal Year 2016

Governor Dennis Daugaard announced his fiscal year 2016 budget proposal on December 2, 2014. Under the governor's proposal, total spending would have equaled approximately $4.32 billion, including $1.44 billion in general fund spending. Public schools, state universities, and technical institutes would have all received additional funding from previous years. The governor announced that he wanted to approach the budget conservatively, preferring that the state "face a budget surplus over a budget shortfall."

Governor Daugaard signed the state's official budget into law on March 19, 2015. This enacted budget totaled $4.32 billion, with $1.43 billion in general fund spending. The budget also enacted a 2 percent increase in education spending, up to a 2.5 percent increase in healthcare spending, a 2 percent increase in general spending for inflation, and a 2 percent market value increase for state employees.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, South Dakota had a state debt of approximately $7.7 billion. Its state debt per capita was $9,249. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
South Dakota	$7,707,458,000	$9,249	46
Minnesota	$85,879,526,000	$15,965	21
Nebraska	$13,139,045,000	$7,081	49
North Dakota	$9,263,742,000	$13,241	30
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), South Dakota ranked fifth best in the country in “taxpayer surplus.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on an analysis of South Dakota’s Comprehensive Annual Financial Report from June 30, 2014, and actuarial reports for the state’s retirement plans, TIA concluded that the state’s promised pension benefits were actually overfunded by $260 million. Including the excess assets within the pension fund, the state had a surplus of $1.2 billion, or a taxpayer surplus of $4,000.

Public pensions

See also: South Dakota public pensions and South Dakota public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of South Dakota's state-administered pension plans decreased from 97.4 percent to 92.6 percent. The state paid 99 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $636 million. This amounted to $795 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for South Dakota and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
South Dakota	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA
Minnesota	AA+	AA+	AA+	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Nebraska	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA+	AA+	AA+
North Dakota	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators

See also: Economic indicators by state

South Dakota's GDP increased by 0.6 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

Most South Dakota residents earned incomes above 400 percent of the federal poverty level, with a median annual household income of $50,488, second lowest among neighboring states. The state's unemployment rate was lower than the national rate at 3.4 percent.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
South Dakota	11%	17%	35%	37%	$50,488	3.7%	3.4%	$46,732
Montana	15%	19%	35%	31%	$43,924	5.6%	4.6%	$44,040
Nebraska	11%	17%	36%	36%	$55,107	3.9%	3.6%	$109,614
North Dakota	10%	17%	33%	40%	$55,583	2.8%	2.8%	$56,329
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official South Dakota budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. South Dakota CAFR South Dakota budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies between June and July of the year preceding the start of the new fiscal year.
2. State agencies submit their budget requests to the governor by August 31.
3. Agency hearings are held in September.
4. The governor submits his or her proposed budget to the state legislature in December.
5. The legislature typically adopts a budget in March or April. A simple majority is required to pass a budget. The fiscal year begins July 1.

South Dakota is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to pass a balanced budget.

Agencies, offices, and committees

The following standing committees in the South Dakota State Legislature deal with budget and finance matters:

1. Appropriations Committee, South Dakota House of Representatives
2. Appropriations Committee, South Dakota State Legislature
3. Appropriations Committee, South Dakota State Senate
4. Taxation Committee, South Dakota House of Representatives

Transparency

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, South Dakota received a grade of A- and a numerical score of 90, indicating that South Dakota was "Leading" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in South Dakota increased by approximately $26 million, from $4.063 billion in fiscal year 2013 to an estimated $4.089 billion in 2014. This represented a 0.6 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned South Dakota a credit rating of AA+.

HIGHLIGHTS

In 2013, South Dakota's state tax collections per capita equaled $1,814, the fourth-lowest in the nation.

Spending

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

In South Dakota in fiscal year 2014, estimated per capita spending equaled $4,792.69, a smaller amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
South Dakota	$2,669	$1,420	$4,089	853,175	$4,792.69
Minnesota	$25,861	$9,492	$35,353	5,457,173	$6,478.26
Nebraska	$7,725	$2,817	$10,542	1,881,503	$5,602.97
North Dakota	$5,186	$1,590	$6,776	739,482	$9,163.17
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures

Breakdown of spending by function in FY 2013.
Source: National Association of State Budget Officers

State spending in South Dakota can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2013, higher education accounted for approximately 22.3 percent of South Dakota's total expenditures.

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
South Dakota	14.1%	22.3%	0.7%	19.9%	2.5%	15%	25.5%
Minnesota	29.2%	4.7%	1.4%	24.3%	1.5%	10.7%	28.2%
Nebraska	14.6%	23.3%	0.5%	17.9%	2.2%	7.8%	33.6%
North Dakota	15%	19%	0.1%	13.7%	1.9%	16.1%	34.2%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2009 to 2013, the share of the South Dakota state budget spent on higher education increased from 19.0 percent to 22.3 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2013	14.1%	22.3%	0.7%	19.9%	2.5%	15%	25.5%
2012	14.3%	17.7%	0.8%	20.9%	2.7%	15.9%	27.7%
2011	16.3%	18.4%	0.8%	20.7%	2.6%	15.0%	26.1%
2010	15.4%	17.3%	0.8%	21.7%	2.8%	13.7%	28.5%
2009	16.7%	19.0%	0.8%	21.7%	3.0%	12.9%	26.1%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.

When compared to nearby states, South Dakota had the lowest total state tax collections at $1.5 billion.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
South Dakota	N/A	$1,228,262	$257,220	N/A	$37,172	$11,009	$1,533,663	845,510	$1,813.89
Minnesota	$821,799	$8,289,780	$1,184,465	$8,950,755	$1,363,128	$421,882	$21,031,809	5,422,060	$3,878.93
Nebraska	$148	$2,197,988	$130,762	$2,101,694	$275,563	$12,789	$4,718,944	1,868,969	$2,524.89
North Dakota	$148	$2,197,988	$130,762	$2,101,694	$275,563	$12,789	$4,718,944	1,868,969	$2,524.89
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

South Dakota tax collections by source in 2013.
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. Approximately 80 percent of South Dakota's state tax collections came from sales taxes and gross receipts.

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
South Dakota	N/A	80.09%	16.77%	N/A	2.42%	0.72%
Minnesota	3.91%	39.42%	5.63%	42.56%	6.48%	2.01%
Nebraska	0.00%	46.58%	2.77%	44.54%	5.84%	0.27%
North Dakota	0.05%	33.28%	3.92%	12.11%	4.26%	46.38%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, South Dakota had a state debt of approximately $7.7 billion. Its state debt per capita was $9,249. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
South Dakota	$7,707,458,000	$9,249	46
Minnesota	$85,879,526,000	$15,965	21
Nebraska	$13,139,045,000	$7,081	49
North Dakota	$9,263,742,000	$13,241	30
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: South Dakota public pensions and South Dakota public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of South Dakota's state-administered pension plans decreased from 97.4 percent to 92.6 percent. The state paid 99 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $636 million. This amounted to $795 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for South Dakota and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
South Dakota	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA
Minnesota	AA+	AA+	AA+	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Nebraska	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA+	AA+	AA+
North Dakota	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.

The table below notes what share of South Dakota’s general revenues came from the federal government in 2012. That year, South Dakota received approximately $1.6 billion in federal aid, 40.84 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
South Dakota	$1,630,220	40.84%	4
Minnesota	$9,608,018	28.13%	39
Nebraska	$3,141,413	34.22%	22
North Dakota	$1,750,134	24.76%	45
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies between June and July of the year preceding the start of the new fiscal year.
2. State agencies submit their budget requests to the governor by August 31.
3. Agency hearings are held in September.
4. The governor submits his or her proposed budget to the state legislature in December.
5. The legislature typically adopts a budget in March or April. A simple majority is required to pass a budget. The fiscal year begins July 1.

South Dakota is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to pass a balanced budget.

Agencies, offices, and committees

The following standing committees in the South Dakota State Legislature deal with budget and finance matters:

1. Appropriations Committee, South Dakota House of Representatives
2. Appropriations Committee, South Dakota State Legislature
3. Appropriations Committee, South Dakota State Senate
4. Taxation Committee, South Dakota House of Representatives

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending. According to the report, South Dakota received a grade of B+ and a numerical score of 89.5, indicating that South Dakota was advancing in terms of transparency regarding state spending.

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, South Dakota's total expenditures increased by approximately $0.582 billion, from $3.549 billion in 2009 to $4.131 billion in 2013. This represented a 16.40 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures
South Dakota	$1,302	$1,487	$1,307	$35	$4,131	$4,889.47
Minnesota	$20,056	$8,637	$6,263	$810	$35,766	$6,598.43
Nebraska	$3,590	$3,014	$3,559	$0	$10,163	$5,439.08
North Dakota	$2,220	$1,621	$2,072	$26	$5,939	$8,209.92
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in South Dakota can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
South Dakota	14.3%	17.7%	0.8%	20.9%	2.7%	15.9%	27.7%
Minnesota	23.8%	9.7%	1.4%	27.6%	1.5%	8.3%	27.7%
Nebraska	15.3%	23.5%	0.5%	16.7%	2.3%	7.5%	34.3%
North Dakota	13.8%	17.7%	0.1%	12.1%	1.9%	16.4%	38.0%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

From 2008 to 2012, the share of the state budget spent on elementary and secondary education fell by 2.40 percentage points, or 14.4 percent. During the same period, transportation spending rose by 3.20 percentage points, or 25.2 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
2012	14.3%	17.7%	0.8%	20.9%	2.7%	15.9%	27.7%
2011	16.3%	18.4%	0.8%	20.7%	2.6%	15.0%	26.1%
2010	15.4%	17.3%	0.8%	21.7%	2.8%	13.7%	28.5%
2009	16.7%	19.0%	0.8%	21.7%	3.0%	12.9%	26.1%
2008	16.7%	18.4%	0.9%	22.3%	3.2%	12.7%	25.8%
Change in %	-2.40%	-0.70%	-0.10%	-1.40%	-0.50%	3.20%	1.90%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
South Dakota	$776	$0	$0	$1	$587	$1,364	$1,614.44
Minnesota	$4,817	$8,649	$1,165	$39	$2,786	$17,456	$3,220.44
Nebraska	$1,475	$2,102	$276	$1	$199	$4,052	$2,168.57
North Dakota	$1,256	$596	$162	$5	$528	$2,547	$3,520.91
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, South Dakota ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$776	$0	$0	$1	$587	$1,364	$1,614.44
2012	$744	$0	$0	$1	$537	$1,282	$1,537.08
2011	$710	$0	$0	$1	$437	$1,148	$1,393.59
2010	$652	$0	$0	$1	$479	$1,132	$1,386.90
2009	$660	$0	$0	$0	$494	$1,154	$1,420.51
Change in %	17.58%	0.00%	0.00%	N/A	18.83%	18.20%	13.65%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in South Dakota ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$1,215	33%	$960	26%	$1,488	40%	$35	1%	$3,698
2010-2011	$1,167	30%	$957	25%	$1,679	43%	$67	2%	$3,870
2009-2010	$1,149	30%	$892	23%	$1,726	45%	$67	2%	$3,834
Averages:	$1,177	31%	$936	25%	$1,631	43%	$56	1%	$3,801

Budget transparency

Transparency evaluation
	Open.SD.gov
Searchability	P
Grants	Y
Contracts	Y
Line item expenditures	Y
Dept./agency budgets	Y
Public employee salaries	Y
Last evaluation date unknown.

See also: Evaluation of South Dakota state website and Constitutional provisions regarding reading of bills

Open.SD.gov is the state's official spending transparency database. Its creation was announced on March 12, 2008, approximately six months after transparency legislation by State Representative Hal Wick had been vetoed. South Dakota Senate Bill 143 (2009), which was signed into law on March 13, 2009, required "a searchable internet website for the posting and access of certain public records and financial information."

Open.SD.gov provides a database of state financial information, organized around broad topics such as budget, expenditures, revenues, vendor contracts, and payroll. Much of the information is updated twice per week. Since data populating the database is tied directly to South Dakota's accounting system, payroll information is updated in real-time (that is, as soon as information enters the general accounting system software, it will appear on this database).

The table to the right is helpful in evaluating the level of transparency provided by a state spending and transparency database.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for South Dakota, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. South Dakota tied for 20th in the nation with 12 other states, earning five out of eight possible points.

South Dakota - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting
Annual cycle	Y
Binding revenue forecast
Legislative revenue forecast
Nonpartisan staff	N
Constitution or statutory tax/spend limitations	N
TOTAL	5

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.

Prior fiscal year budgets

Fiscal year 2016

See budget bill: South Dakota Budget in Brief, Fiscal Year 2016

Governor Dennis Daugaard announced his fiscal year 2016 budget proposal on December 2, 2014. Under the governor's proposal, total spending would have equaled approximately $4.32 billion, including $1.44 billion in general fund spending. Public schools, state universities and technical institutes would have all received additional funding from previous years. The governor announced that he wanted to approach the budget conservatively, preferring that the state "face a budget surplus over a budget shortfall."

Governor Daugaard signed the state's official budget into law on March 19, 2015. This enacted a final total budget of $4.32 billion, with $1.43 billion in general fund spending. The budget also enacted a 2 percent increase in education spending, up to a 2.5 percent increase in healthcare spending, a 2 percent increase in general spending for inflation, and a 2 percent market value increase for state employees.

Fiscal year 2015

See budget bill: SB 187

Governor Dennis Daugaard announced his fiscal year 2015 budget proposal on December 3, 2013. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $4.28 billion, including $1.39 billion in general fund spending.

On March 31, 2014, Daugaard signed into law the fiscal year 2015 budget. The enacted budget totaled $4.259 billion, a 4.7 percent increase over fiscal year 2014.

Fiscal year 2014

See budget bill: House Bill 1185

South Dakota state budget -- 2014
South Dakota State Legislature
Text:	House Bill 1185
Legislative history
Introduced:	January 24, 2013
House:	March 8, 2013
Vote (lower house):	48-17
Senate:	March 8, 2013
Vote (upper house):	31-4
Governor:	Dennis Daugaard
Signed:	March 26, 2013 (line-item veto sustained)

On March 26, 2013, Governor Dennis Daugaard signed the fiscal year 2014 budget into law. To access the complete bill text, click here. A budget summary document is available here.

Daugaard did exercise line-item veto authority over the budget as passed. His veto pertained to a technical matter and was not overridden by the legislature.

Fiscal year 2013

See also: South Dakota state budget (2012-2013)

Fiscal year 2012

See also: South Dakota state budget (2011-2012)

Fiscal year 2011

Click here to see a budget summary document for fiscal year 2011

Fiscal year 2010

Click here to see a budget summary document for fiscal year 2010

See also

• South Dakota state budget and finances