PIERRE, S.D. (AP) – South Dakota lawmakers are projecting they will have more money to work with than previously expected as they craft the state budget this legislative session.

Gov. Kristi Noem predicted in December that revenues would be tight as the state recovers from flooding and trade uncertainty.

But revenue has rebounded in the last two months.

Lawmakers decided Thursday they will have roughly $1.74 billion in revenue for the 2021 budget that starts in July, which is $19 million more than the governor’s projection.

Lawmakers are trying to find room in the budget to fund pay increases for teachers, state employees and service providers.