South Dakota lawmakers should expect an even tighter state budget next legislative session with revenues potentially $24.5 million less than projected, the Legislature’s budget committee learned this week.

Fiscal experts with the Legislative Research Council and the governor’s Bureau of Finance and Management briefed the committee Wednesday, July 23 in Pierre.

They said the lagging revenue is due partly to recent wage growth in the state failing to significantly outpace inflation, which means South Dakotans are spending less money.

The state relies heavily on sales tax, in addition to lottery taxes, insurance taxes and contractor’s excise taxes. Projections expect revenue will increase compared to the last fiscal year, but not as much as lawmakers planned for.

The two agencies proj

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