South Dakota Gov. Dennis Daugaard has proposed a $4.1 billion state budget he says will provide modest increases in state spending on education, health care and salaries for state workers.
In a speech to the Legislature, the Republican governor proposed 3 percent increases in state aid to school districts, funding for universities and reimbursements to hospitals and other facilities that provide medical services to poor people.
Daugaard's plan would boost spending on those priorities only to cover inflation in the year beginning next July. But education and health care officials have said they will lobby for more money to help recover from budget cuts made last year.
The governor says he is leaving about $26 million uncommitted. He and the Legislature will negotiate how to spend that extra money.