As the South Dakota Legislature prepares to reconvene in Pierre on Tuesday, one of the discussions law-makers are having focuses on the Governors 2021 proposed budget.
When the governor revealed her proposed budget back in December it included no inflationary increases for state workers, education and medicaid providers.
Representative Hugh Bartels from Watertown sits on the budget appropriations committee. He tells KXLG News that appropriations will be looking for a way to find revenue to supplement those three areas.
In 2016, the federal government passed the Permanent Internet Tax Freedom Act which change the law to prevent state and municipalities from collecting internet usage tax. Effective July 1st of this year, the State of South Dakota will no longer be able to receive those dollars, which equates to around $20 million a year for the state and $10 million a year for municipalities…..
Bartels says that $20 million is an estimate and the number may be a little more or less, either way it’s a big hole in the state budget that will need to be filled…..
The total state budget for the 2021 fiscal year is $4.92 billion.