Two news stories today cover Gov. Rounds' budget message scheduled for tomorrow. This story discusses the vagaries of revenue and how it might effect the up coming legislative session.
Demands on the treasury will be huge, and a recent report shows revenue somewhat above last year but well below what lawmakers projected when they finalized the current budget last March."It's all about money, where it comes from and where it's needed most," said Rep. Jim Putnam, R-Armour, a long-term member of the Joint Appropriations Committee. "We never have enough for everything."
The report goes on to say that many revenue streams are up from last year, but not as much as anticipated last year by the legislature.
Meanwhile, Democrats in the state are unsurprisingly asking for a major increase in education funding.
Senate Democratic Leader Scott Heidepriem of Sioux Falls says he hopes Republican Gov. Mike Rounds' budget proposal will boost state financial aid to school districts and limit spending increases in the rest of state government.
In recent years, increases in overall state spending have exceeded the growth in state spending on education, Heidepriem said. He said he hopes Rounds reverses that when he presents his budget proposal to the Legislature on Tuesday.
"I'm hoping we'll have a budget that returns to common sense," Heidepriem said.
However, House Republican Leader Larry Rhoden of Union Center said the governor and GOP majorities in the House and Senate have been prudent in writing state budgets. Overall state spending has increased in recent years partly because the federal government has made the state pay a larger share of Medicaid, the state-federal program that pays the medical expenses of low-income people, he said.
Leader Rhoden concludes:
But Rhoden called the Democratic plan irresponsible. If more earnings are spent each year, the funds will not keep pace with inflation, he said.
If too much is spent from the trust funds each year, the funds eventually will be gone, the Republican House leader said. That would mean the only way to fund ongoing spending would be to raise taxes, he said.
Rep. Rhoden perhaps should be reminded that South Dakota has the lowest tax burden in the nation.
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