(Pierre, SD) — South Dakota’s revenue outlook is slipping as the new budget year gets underway. State economists now say general fund revenues for 2026 will come in nearly one percent below what lawmakers expected, mostly due to weaker sales tax collections. That’s a concern, since sales tax is the state’s largest source of revenue. Finance officials delivered the updated forecast to lawmakers Wednesday, noting that sales tax fell last year too. It’s something that’s only happened once before during the 2010 recession.
