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SDAT director defends budget, explains cloud conversion cost growth and anti‑fraud steps while DLS flags contingent reductions
Summary
At the subcommittee hearing, Department of Assessments and Taxation Director Dan Phillips described modernization efforts, staff retention gains after salary increases, and steps to curb tax‑credit fraud; Department of Legislative Services flagged contingent BRFAA reductions and asked for supplemental appropriation corrections.
Department of Assessments and Taxation Director Dan Phillips and senior SDAT staff described agency modernization efforts, staffing changes and budget issues to the Public Safety and Administration Subcommittee of Appropriations.
DLS analyst David presented the fiscal 2026 allowance for SDAT, which DLS said decreases by $7.6 million (4.3%) to $168.9 million. DLS told the committee the fiscal 2026 allowance includes a contingent $28.1 million reduction that depends on provisions of the Budget Reconciliation and Financing Act (BRFAA). One provision would change the historical 50/50 cost‑sharing split between SDAT and local jurisdictions for real property and business personal property valuation and IT expenses to a 90/10 split, moving $20.9 million from general funds to special funds in DLS’s presentation. DLS recommended SDAT and the Department of Budget and Management introduce a supplemental budget item to correct a contingent general fund reduction to $21,231,952 and a matching special fund…
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