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.