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November 07, 2012 12:05 AM

SD Voters Reject Sales Hike For Schools, Medicaid

sioux falls, sd

South Dakota voters have rejected a proposal to raise the state sales tax to provide more money for schools and the Medicaid program that provides health care to low-income people.

A teachers union and a health care organization collected signatures to put the proposal on the ballot after Gov. Dennis Daugaard and the Republican-dominated Legislature cut state funding last year for school districts and medical facilities that serve Medicaid patients.

The measure would have raised the state sales tax from 4 percent to 5 percent and was expected to raise an estimated $180 million a year. Half would have gone to school districts and half to Medicaid.

Opponents say such funding decisions should be left to the governor and the Legislature.

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