Gov. Mike Rounds said the budget he's preparing for the next Legislature will be built around the realization that tax revenue is down and tough decisions are ahead.  He says the problem is compounded because more money will have to be spent on Medicaid, which pays the medical expenses of low-income people.

Rounds says the 2010 Legislature will be reluctant in an election year to boost taxes or fees even on a temporary basis to raise more revenue to operate state government. He says it's early yet and state revenues could improve, but Rounds says the alternative might be painful cuts to good programs.