PIERRE, S.D. – South Dakota lawmakers are passing a budget to fund state government for the upcoming fiscal year.
Many call it a lean budget and anticipate tough financial decisions in the future.
Lawmakers are giving a 1.25 percent inflationary increase to what’s called the Big Three — that’s state employee salaries, education and community service providers.
That’s less than half of the inflationary increase seen in the US. SDPB employees are state employees and subject to the increase.
The budget reflects some proposed budget cuts by the governor’s office and ignores others.
Republican Sen. Ernie Otten is co-chair of the committee that sets the state budget. He said the budget does cut $70 million overall.
“Was just more or less shifting funds back and forth. Some areas would get cut thinner to supply other areas,” Otten said.
Some expect sales tax collections to come in even lower than the appropriations committee forecasts. Lawmakers are also keeping an eye on any funding cuts made by the federal government. Just over 40 percent of the state budget is federal money.
Rep. Eric Muckey is a Democrat from Sioux Falls. He said lawmakers are cutting or reducing some services, like to food stamps and Medicaid.
“This was a really challenging budget year,” Muckey said. “Especially during a very history moment—the 100th legislative session—we’re at an interesting crossroads as a state. We’re facing a lot of economic uncertainty as we head into a new fiscal year.”
Other cuts include to programs designed to help new mothers and infants, meth prevention marketing and contributions to dual credit.
Republican Rep. Mike Derby said some budget cuts were essential to restore public broadcasting funding, cover Medicaid expansion costs, and increased oversite and government accountability.
“We held true to our core obligations. We had to make tough decisions, but we also were able to invest in key priorities,” Derby said.
The final budget totals $7.3 billion. It now heads to gov. Larry Rhoden’s desk. The new fiscal year starts July 1.
