What happened to the hole?

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Bob Mercer has a story this morning in the Pierre Capotil Journal which mirrors a point brought up to me this morning by a caller. What happened to the massive doom and gloom $100-300 million dollar hole that was forecast?

So what happened between those October speeches and this week’s speech?

It turns out that the $176 million included every dollar requested by every state government department and agency.

The $176 million also included a 1.2 percent inflationary increase in per-pupil funding for public schools; the standard 3 percent salary increase and other adjustments for state government employees; and a 3 percent increase for community providers of health and other assistance to the needy.

and…

The governor proposes covering the $31.7 million shortfall from a $107 million pool of state reserves.

Sen. Jim Hundstad came to the Capitol for the Tuesday budget address expecting much worse because of the governor’s earlier speeches. “The numbers didn’t look so bad,” Hundstad, D-Bath, said afterward. “It looks controllable.”

Therein may be the governor’s real problem: convincing the Legislature that serious budget adjustments are needed, even though he’s not proposing any significant cuts at this point beyond his no-increase policy.

and…

This year isn’t the problem. I call it the stimulus cliff. In another year, it’s gone,” Vehle said.

Read it here.

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Comments

Looks like Hundstad is making a move!

The biggest problem we have right now is that Rounds is not a problem solver he’s a problem postponer.

So is the legislature a problem postponer as they couldn’t gobble up that stimulus money fast enough last year.

People (including legislators) like to take the easy way. Especially when they can pass it on to the next class in 2010. Good leaders will do what is right no matter how hard. Right now we don’t have one.

I think Munsterman is the only guy right now who will do the hard things.

What I like about Jim Hundstad is that he is a man of few words who would rather let his actions speak for him.

Could be a credible challenger in 2010! Especially with Vilsak and Herseth on board!

Jim Hundstad is the kind of a man who can hit the floor with his hat even blindfolded.

In the “Capotil Journal” Steve Sibson is quoted as saying “Secalur Secalur”

I am putting the budget into my computer and just ran across a huge increase in Social Services. Medicaid is going through the roof. 132 million increase above 2009 actual, including federal funding. That is over 20%.

I’m getting bored with people commenting, writing and reporting about the budget who must have not watched the address or are for some reason picking and choosing from it. During the address Rounds spoke to this issue. I wish I could watch it now and quote for you. He said something the affect that in the past 10 monthes revenues (from sales tax receipts I would guess) have increased more than they have in the past 4 years. This would explain the difference from the doom and gloom news a few months to now.

Not that Rouds didn’t play some games with the numbers but the article still isn’nt forthcoming with all the facts and information availble in the budget address.

LOL.

It’s becoming more likely everyday! Mercer interviewed him for a reason!

Even Matt McGovern got out of the way for this one. This is why the Thune team hired Justin Brassell.

Steve, why don’t you just call the state and ask them to give you a disk?

Jim Hundstad is the kind of man that when you mow his lawn, he feeds you roasted lamb and tankards of ale.

Steve, you really should call the state and ask for a disk. I mean look with all respect en stuf you are not a good speller. I bet you mix numbers up too.

The light just came on. A few posts ago, I gave the governor credit for handling the situation well. Turns out – it was a fabricated deal.

The interesting point of Mercer’s column, the thing no one seems to understand, is that the governor apparently used preliminary agency “requests” (wish-list items) to spread a financial-crisis message across SD. And, given that everyone now thinks we’re “lucky” to live in SD cause it coulda been much worse, legislators wouldn’t dare challenge the governor on major fiscal reform. How could they? The governor just saved the day.

A big chunk of SD, thanks to the associated press and every major news organization have swollowed Enron-structural deficit bunk hook, line & sinker. Watching KELO I was fully expecting a $200M hole, massive cuts and potential tax increases. But voila(!) a day later the gov comes in with a budget that’s actually….pretty boring and not very scary at all – at least relative to his repeated $179M structural deficit comment. To top it off – Daugaard piles on praise 30 minutes or so BEFORE the govs budget speech?

Let me get this right
1) For months the gov lays out a financial nightmare based on preliminary agency requests?
2) Then he and his crack budget staff establish, propose and present a budget – not based on a wish list?
3) Dennis piles on the praise a half hour before the speech?

There are so many things wrong with this approach – I think the best way to sum it up is intellectually and fiscally dishonest.

I wonder if the agencies are ok with being thrown under the bus and treated like children so that the governor (or Dennis) can look like a hero?

What a complete crock of #$%^&*

Here’s the speech in audio and video links:
http://sdpb.org/Statehouse/index.asp

hey truth- the Governor gave the media a briefing the day before the budget address. Daugaard didn’t say anything in his press release that the Governor didn’t already explain in his briefing the day before. This is no scandal.

Also- in addition to sale tax revenue increasing- the Governor stated in his budget address that there is over $17 million in trust fund revenue over the past few months that they didn’t expect.

I fear you are being hijacked by trolls!

Munsterman has the answers and the real numbers.

I like Jim Hundstad he is a quality guy. I just disagree with some of his politics on taxes etc.

10:13
Come on. The gov didn’t tell the entire state that we were about to fall off a financial cliff based on agency requests? Wasn’t he telling the same story all the way up to the budget address? Last, he didn’t know that he was $100M or so overstated 2 days, 1 week, 3 weeks before the budget address. I agree that it’s not a scandal. I do think it’s inappropriate for the governor and lieutenant governor to politically capitalize on an issue of this magnitude.

I wander if instead of dening the wish list and let it all ride we’d have the libberals in here whining about sumpthin else ha ha. I think its all whining about the arts getting cut last year and the libbies brining it back haha.

10:23 is right, Munsterman has the real numbers. I can’t wait to see them because that will rock the world ha ha. Munsterman has numbers and when he shows his new budget it will hit that Beavis guy right in the head@@@@@@@@

I found it interesting that Munsterman rejected across the board cuts in the Capital Journal.

Munsterman is the best choice right now. I want to see real leadership!

I thought Munsterman was pushing for blind across the board cuts. Now he’s wanting to go in and do targeted cuts after analyzing each situation? Thats wrong all the government every single part of it should feel the pain and bleed just like the taxpayers are.

12:01p

Blind cuts may afford a degree of political cover by “sharing the pain” but targeted cuts should be more efficient at actually trimming fat or unnecessary programs.

Would you cut your family budget with “across the board” cuts or try to prioritize them?

Munsterman would not prioritize and would make all feel the pain equally as they should and will and then raise my taxes. Heidepriem would prioritize by decreasing everybody except education double and then raise my taxes. Knuppe would use a magic 8-ball and then cut my taxes. Sibby would ask Gondzard the Lizard Beast from Outter Space to solve the problem and eliminate taxes. Volesky would visit with the public and listen.

Doesn’t Gondzard spell his name Gonzard (no “D”), or am I thinking of a different Lizard Beast?

Different Lizard Beast. No relation.

I still advocate a fundamental re-evaluation of all state government priorities and spending. What will in the end be about three years of no growth in state government will still need to be reformed.

1) The Obama stimulus bailout will not be available next year. Hasn’t that been north of $50 million per year?

2) A family that spent the same amount on every budget item over three years would be disordered. Kids grow out of diapers and start needing school clothes. Same with government: What we needed yesterday is not needed today.

3) Over the last 20 years, business has gotten more productive, charities have gotten more productive. But does anybody believe we are getting more productive government (More goods and services for less cost?)

“What happened to the hole?”
Ignore it. It will “feel good” for a while.
But it hasn’t gone away.
Just kicked down the road for another year, another governor, and another legislature to actually DO something.

I’m still waiting for the cream to rise and a shining star to appear in our state legis. I wonder what kind of stimulus that would take? 11/02/2010? Vote the cowards out.

Is Jim Hundstad that star? No, but he’s probably the brightest star the Dems have. If only he’d vote for huge across the board cuts, including education, I’d support him.

Budget Psuedo-Solutions

Governor Rounds just delivered his annual budget message to the state legislature. Within hours, all the would-be successors published ideas for dealing with expected shortfalls. As a person with over 30 years of service in government, I’ve heard it all before. Some would mandate cuts across all agencies. Others would redistribute funds from less popular programs (e.g. Corrections) to more popular programs (e.g. Education). All flunked Public Administration 101.

Any public servant will tell you they spend much of their day on administrative chores that do nothing to accomplish the core mission. This workload exists to comply
with regulations. This is the only real fat that could make a difference if eliminated.

Regulations are created to implement legislation. So here’s a radical idea.
(1) Repeal laws that contribute little to “mission
accomplished.”
(2) Eliminate the associated regulations.
(3) Eliminate the workload devoted to regulatory
compliance.
(4) Take excess government positions off the books.
(5) Finally, forbid legislators from reallocating the
savings to new endeavors.

We cannot solve our current problems with the same philosophies and practices that created them. Which candidate for governor will go after the root cause of our
budget issue, instead of offering pseudo-solutions?

B. Thomas Marking
Independent Candidate for the U.S. House of Representatives

B. Thomas Marking,

Food for thought! There’s certainly the case to be made that lawmakers should not only MAKE laws, but repeal those that are unnecessary and unproductive.

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