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.


85° 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







 
Find Local Businesses on KELO Pages!

View politics

You may also like

SD Dems Ask Panel To Subpoena Daugaard, Rounds

8/19/2014 3:30 PM

South Dakota Democrats want a legislative committee to subpoena Governor Dennis Daugaard and former Governor Mike Rounds in its probe of the immigrant...

Full Story
SD Got Involved With EB-5 Via No-Bid Contract

8/18/2014 10:00 PM

South Dakota got involved with the EB-5 immigrant investor program in 2009 when it entered into an exclusive no-bid contract with Joop Bollen and his ...

Full Story | Watch
Judge Rules For Candidate In Lt. Governor Lawsuit

8/18/2014 3:49 PM

A federal judge has ruled that Lora Hubbel can be Mike Myers running mate this fall as he runs as an independent candidate for South Dakota governor.

Full Story
SD Senate Candidates Fire Away In First Debate

8/20/2014 9:32 PM

The four men running for South Dakota's open U.S. Senate seat didn't hold back during their first debate of the season.

Full Story | Watch
US Senate Candidate Weiland Enlists New Adviser

8/18/2014 1:12 PM

U.S. Senate candidate Rick Weiland has enlisted a new campaign adviser.

Full Story


Events