User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


28° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Back to all news

Politics

Find local businesses
on the KELO Pages!

 

Fiscal Badlands Of South Dakota?

December 5, 2012, 8:07 AM by Austin Hoffman

Fiscal Badlands Of South Dakota?
PIERRE, SD -

January 1 could bring much more than a new year if Congress doesn't reach an agreement. The looming "fiscal cliff" could bring higher taxes, a cut in spending and a possible recession. And while it comes from the federal government, it could have a big impact right here in South Dakota.

By doing nothing at all, Congress could make some big changes. But the cuts and higher taxes wouldn't just affect those on Capital Hill; they will reverberate through the country and take a significant piece out of South Dakota's budget.

"The average state gets about 6.6 percent of its revenue from federal grants," Governor Dennis Daugaard said.

South Dakota gets around 44% of its budget, or $1.75 billion out of $4.01 billion, from the federal government. In his annual budget address, Daugaard said that 10.3 percent of that, or around $412 million, is subject to cuts. However, if we do hit the fiscal cliff, the amount of money we would actually lose would be much less.

"So if the cuts take place, our best judgment now is they would result in about $29 million in lost federal funds," Daugaard said.

And for those sitting on the House or Senate floor, $29 million is a very big deal.

"Rightfully so, we have a reason to be concerned with what happens at the federal level.  And so that’s where, not only how we as a state operate and are very frugal with the dollars we work with," Democratic Senator Jason Frerichs of Wilmot said.

"It’s only prudent to plan for the worst and hope for the best. If and when the fiscal cliff happens, and as the governor said today we have $29 million worth of impact to our state, dollars that wouldn't be there anymore," Republican Senator Russell Olson of Wentworth said.

It could mean cuts to the programs that get those federal dollars or the legislature could use the $26 million in one-time monies that they have to spend this year.  But even then, it doesn't put the state completely in the black.

"That still leaves us $3 million upside down if you're looking at the $26 million compared to what the impact of the fiscal cliff would be," Olson said.

"I think all of us are hoping for direction, not only as state policy makers but for local government officials, along with the folks we send to Washington to do our work for us, We want answers," Sen. Frerichs said.

This year's legislative session begins at noon on January 8. So by the time the gavel opens the policy-making doors in South Dakota, we will know whether the state is at the bottom of the fiscal cliff or Congress made something work.

This article has been revised to reflect the following correction:
A part of this story was re-phrased.

Previous Story

Next Story


Comments







Sponsored
Find Local Businesses on KELO Pages!

View politics

You may also like

State's Attorney Deadrick Switching To Secretary Of State

12/14/2014 11:58 AM

Charles Mix County State's Attorney Tom Deadrick will resign his current post to join the office of incoming Secretary of State Shantel Krebs.

Full Story
SD's Rounds Selected To Serve On Four Committees In Congress

12/15/2014 5:42 PM

U.S. Sen.-Elect Mike Rounds from South Dakota will serve on four committees in the upcoming Congress.

Full Story
South Dakota Democrats Elect New Party Chairwoman

12/13/2014 3:56 PM

The South Dakota Democratic Party has elected a new leader.

Full Story
Rounds Appoints Two To Senior Leadership Team

12/18/2014 12:01 PM

U.S. Senator-Elect Mike Rounds appointed two members to his senior leadership team.

Full Story
Jeb Bush To 'Actively Explore' Run For President

12/16/2014 9:27 AM

Jeb Bush is taking his most definitive step yet toward running for president.

Full Story


Events