Bake Sales and Car Washes

The SD Legislature will need to find approximately $39M to cover shortfalls for the 2012 budget.

This is due is to $76M in losses of Federal money and other increased spending.
Much of that (roughly $69M) comes from a loss of Federal stimulus dollars that were spent to cover certain programs and was expected.
Added to the $6.5M  increase in Medicare spending and we end up $76M in the red.
It breaks down as seen below.

*Federal Medical Assistance Percentages $25.5M
*Stablization Funds – State Aid $24.4M
*Stablization Funds – Regents $11.3M
*Government Services Stablization Funds $7.95M
*Child Support and Protection $362,500
Medicare Part D $6.5M
* indicates was paid for with Federal Stimulus which is no longer available

Now there is a new round (round 3) of Federal Stimulus money on its way.
That stimulus money is nearly $37M, which still leaves the state with a little over $39M short.

I want to hear your ideas on how and where the state can make up $39M for the 2012 budget.
Personally, rather that just hoping that the economy will pick up, or considering new taxes and fees, I think the state should look at tightening its belt.

51 Replies to “Bake Sales and Car Washes”

  1. Arrowhead

    This is where I always agreed with Blake Curd instead of Kristi Noem or SHS.

    If we would have refused the stimulus money 2 years ago we would have already made these cuts instead of passing them on to a new legislature and a new Governor.

  2. Ranger

    Refusing the stimulus money wouldn't have stopped the federal government from sending those same dollars to California or one of the other welfare states, leaving South Dakota taxpayers with the bill anyway. That said, it's beyone time for budget cuts in South Dakota. Public Broadcasting, state fair, Extension, GF&P, can all be cut with no pain to the taxpayers. We need to cut the number of FTEs and take a hard look at education, welfare, and department cuts.

  3. anonymous

    nothing to worry about here folks. Dennis and Co. have the situation well in hand. I'm sure he and Russ already have it figured out and they have no dems standing in their way.

  4. I would rather be fi

    "Refusing the stimulus money wouldn’t have stopped the federal government from sending those same dollars to California or one of the other welfare states, leaving South Dakota taxpayers with the bill anyway"! Wow! thank God your not elected to make any critical decisions!

    LOL! Spoken like a true politician! You are not a Tea Bagger that's for sure!

  5. DJH

    I thought we elected Republicans to take care of this

    problem. It's time to quit the excuse game and make

    some cuts in the stste government. There are plenty

    of opportunities available. Delays are not acceptable.

  6. Patrick

    "I want to hear your ideas on how and where the state can make up $39M for the 2012 budget… I think the state should look at tightening its belt."

    Actually, "Mike the Archer", I'd like to hear your thoughts on exactly how and where the cuts should come from. Be precise, it's your post.

    1. Mike the Archer

      This is a tough situation, Patrick. I am not trying to make light of it at all.
      I wish the state wasn't in this position in the first place. I know some folks are going to point fingers at who got us in this position, but I am more interested in how to get out of it.
      We have to balance our budget, so how does it happen?

      I would like to see some cuts. I don't know the budget well enough to point out specifics such as $xxx dollars from here or there.
      Individual state departments should be looking at their own individual budgets and finding things they can do without.
      Maybe a Janklow-esque employee downsizing (circa 1995) is in order. We should also take a serious look at the number of FTE's.

      Want I don't want to see is the typical reaction from the legislature – which is "We need more money, lets raise taxes".
      They need to dig deep, find all of the waste first. Then come talk to be about dipping into my pockets.

      What are your thoughts, Patrick?

  7. mo joe

    DENNIS IF YOUR FISCAL SEND BACK THE 37 MILLION TELL THEM WE DONT WANT THAT.ALSO TELL THEM TO GET RID OF FARM SUBSIDIES TO WE DONT NEED THOSE NEITHER.

  8. Les

    Thanks fishing, glad you were here for those words.

    Only 39mil after stim funds, BS Powers, that is no echo from the Munsterman campaign I can recall.

    It probably matters not as we are more than likely walking dead in our federal finances already.

  9. ip

    Cut the number of counties from 66 to 33, offer community outreach with mobile and online services. Design Bookmobile/CT scanner-type trucks to service remote areas.

    South Dakota needs to manage its own pile. You dorks have seized control. Prove you can fix it. Add heritage languages to schools. Teach high school men and women in separate classrooms dressed in business casual. Engage high schoolers in administration with a voting member. Eliminate middle schools.

    The smoking ban will drive gamblers to the Internet. Tax online poker. Grow hemp. Join wildlife compacts with the tribes to raise grass-fed bison on lands connected with corridors. Identify contributors to non-point pollution and fine the hell out of them.

    Stupid state.

  10. Mike the Archer

    Ranger – good point – I miss "spoke".

    It isnt the legislature requesting it. It is money the legislature will need to find.

  11. Troy Jones

    $39 million is 3.2% of the General Fund revenue and 1% of the total budget. Making cuts of this level is not easy but definitely doable.

    By the way, this year general fund revenue is $20 million less than two years before.

    Furthermore, total state spending is $800 million more than 2008.

  12. Annon

    For all who say the state should have refused the stimulas dollars… Are you serious…Think about how many 10's of millions of $'s Federal mandates cost our state every year. As far as I am conserned the Feds are simply rebating a small portion of the $s they collect from us. All that aside from the fact that we will have to repay those $s regardless if we use them or not.

  13. Arrowhead

    As much as I love Kristi Noem she is not really a small Government conservative in the mold of Paul Ryan or Ronald Reagan.

    She is a person who relies on Federal money to keep her farming business afloat. She is GM, Chrysler and Wallstreet. She is a good person and a social conservative but I guarantee she wouldn't give up her farm subsidies to save the country just like the unions across the country don't want to give away their money. When someone recieves $3 million+ in money from the Gov it's hard to cut ties and become normal again. Once you are on the teet it's hard to get off.

  14. Mike the Archer

    Bill,

    I liked your analogy.

    It made me picture a couple guys in a dark, smoke filled room throwing darts at a table of things to cut.

  15. Arrowhead

    3;43-

    That is exactly what is wrong. Just because everyone else is doing it doesn't make it right. Say no and make the cuts!!!

    Our Country is in desperate need of leaders who will do what is right even when 99% of other politicians won't.

    We need more people who will say no when it is more than politically expediant.

  16. Mike the Archer

    Bill,

    I hadn't seen that particular video, but am quite aware of the archers paradox. I know I am shooting correctly when I can see my arrow flying to the target. Watching it spin through the air is a very romantic thing. Thanks for the link, though.

  17. Les

    3:43 Think about how many 10?s of millions of $’s Federal mandates cost our state every year.

    And those stim dollars tie our childrens hands with unfunded mandates, thanks for passing this on to our next great generation.

  18. Annon

    Les,

    That is the point. Our children will pay those $s back regardless if SD uses them to fund schools, or if we turn them down, California uses them to grow the size of their deficit.

  19. Les

    You miss my point anon 558. There are new mandates tied to every stim fund.

    It is a load that we will have to pay back dollars our fed lends or gives to someone else. You mean like to Africa(aids), Iraq(Saddam), Afghanistan(Al Qu)?

    If our state is not bankrupt like all the rest, and we sit without fed mandates, we may pay some number in taxes, but we won't have the extra stranglehold of more mandates upon us.

  20. springer

    Some of the projected deficit is due to mandated Medicaid increases. Repeal Obamacare will help some. Cut EVERY department 10%; there is a lot of dead wood in state gov't. Cut travel expenses for employees; do more conferences via video conferencing. Allow people to buy office supplies and airline tickets where they can be bought the cheapest, not with only certain businesses. Do not increase state aid to education this year and for pete's sake don't look again at pre-K funding. Pretend that it is 1930 again and look only at essential funding. Cut or reduce the rest of the programs.

  21. Lloyd

    Cut a million or two by firing all the overpriced outside lawyers (friends of the administration) who babysit State boards, handle niche areas like child support enforcement and sales tax collections, or other such things. Turn those duties over to the Attorney General's office.

  22. Ranger

    Lots of painful cuts need to be made. The headline to this post suggests that the legislature wants an increase of $76 million, but this request came from Rounds, didn’t it? None of the legislators I talked to know anything about this and Daugaard hasn’t released his budget yet while Rounds has.

  23. Arturo Mendoza

    You can reduce your telecommunication expenses, your local, national and international calls, your cellular calls, your internet access and your private network by using just internet services.

    You can reduce all your travel expenses at least by 50% making mandatory that before any body travels they must resolve the issue on hand by using video conferencing.

    Whatever is your budget on these two items, you can reduce at least 50% on your actual budget and much more.

    Hope you success.

    Saludos

  24. JB

    Has any legislator acknowledged that we're also going to

    have 30 million less in revenues because of the

    shortsighted extreme smoking ban on private property ?

    Whatever the shortfall is, add another 30 million.

  25. grudznick

    Do not put pot smokers in jail. Fine them staggering amounts. If they cannot pay, garnish their wages. Grow government to the point where every pot-smoker-fine-administrator is tripling his/her wage in income to the general fund.

  26. Arrowhead

    We only have 1 AG, 1 SOS, 1 Auditor, 1 School and PL & 1 Treasurer.

    Why don't we combine School Public Lands with Auditor?

  27. Les

    ip, you have a point on corrections.

    2010 DOC budget at 106mil up from 49mil in 2000 with prison pop decreases some of those years. Ive been told our DOC is one of the largest business' in SD.

    Soooo, if you're hungry, spend a couple bucks on a Camel or a joint and get caught smoking. The foods good, and you don't have to work as hard as the rest of the pigeons.

  28. DW

    Had no idea what some of these guys make. Blows me away. I call for a state income tax on state workers only. Maybe county and city of Soiux Falls workers also.

  29. William

    There's a lot of good suggestions here, I hope the next session realizes this.

    I AM disturbed by raiders comment, about "not touching higher education", though. Why not? For too long politicians have justified how they support of our children's education by touting how much they spend on it. When will we judge our educational system by our "results, not our excuses". That's the way ALL of our government programs have to be evaluated!

    FWIW,

    I see no need, not constitution jurisdiction, to separate a class of wage earners (state employees) in a tax code. If their salaries are "out of line" then we need to address it "head on".!

    Shoveling more money to a bureaucracy, just because it has a popular constituency, is not only a bad way to support the constituency they represent, it almost guarantees their constituency will suffer for it.

  30. Troy Jones

    I've heard it said "A K-12 education is the best investment a community can make. A college education is the best investment a student can make."

    I wonder about the wisdom of making an investment in someone who won't be willing to pick up the mantle themself if the choice is to impact those younger.

  31. Annon

    Les,

    You would be right if SD did accept stimulas money that included mandates for increased spending or expanding programs. The money SD accepted did not. The schools were upset at Rounds for threatening not to take the latest round of fed money if it did.

  32. Les

    Anon 944, tell me about our Medicare stim funds not having mandates included. Please explain the facts and how ed money would come without terms?

    Is it easier to just comply to demands while feeding of the fed teet than to go out and earn our own money? Yes, until it is time for the slaughter(pigs).

  33. Les

    No s**t ip. This is getting scary, Ive agreed with you twice in the same post.

    Wasn't it just a month ago or less he was demanding no change in earmarks as that's how it's done.