South Dakota’s economy is in better shape than it was last year, but it still isn’t where we would like it to be. To illustrate how far we’ve come, last year we were looking at an $81.8 million deficit and after targeting $127 million in ongoing cuts, the 2012 budget shows a cushion of $0.9 million.
Revenue is forecast to increase by $39.5 million by 2013, but there are a lot of uncertainties that could adversely affect South Dakota. Four that concern Gov. Daugaard are:
1. Failure of the “Super Committee” of Congress to trim the deficit makes federal budget uncertain.
2. South Dakota’s budget allocations from the federal budget are in jeopardy.
3. Sluggish global economy drags down SD recovery and growth.
4. Unfunded costs of Healthcare Reform are looming.
It was interesting to note that if we had spent the reserves last year instead of cutting spending, we would be looking at a deficit of $88.7 million for 2012 and $116.7 million in 2013.
The governor also proposed that South Dakota pass a balanced budget amendment, which I think is a wonderful idea. South Dakota has always operated on the premise that we are required to balance our budget each year, but that isn’t clearly stated in the SD Constitution. A balanced budget amendment would guarantee our fiscal responsibility and South Dakota’s credit rating would be raised, allowing us to borrow short-term money at a lower interest rate.
Now if we could just get the federal government to be as responsible with your tax money.
Revenue is forecast to increase by $39.5 million by 2013, but there are a lot of uncertainties that could adversely affect South Dakota. Four that concern Gov. Daugaard are:
1. Failure of the “Super Committee” of Congress to trim the deficit makes federal budget uncertain.
2. South Dakota’s budget allocations from the federal budget are in jeopardy.
3. Sluggish global economy drags down SD recovery and growth.
4. Unfunded costs of Healthcare Reform are looming.
It was interesting to note that if we had spent the reserves last year instead of cutting spending, we would be looking at a deficit of $88.7 million for 2012 and $116.7 million in 2013.
The governor also proposed that South Dakota pass a balanced budget amendment, which I think is a wonderful idea. South Dakota has always operated on the premise that we are required to balance our budget each year, but that isn’t clearly stated in the SD Constitution. A balanced budget amendment would guarantee our fiscal responsibility and South Dakota’s credit rating would be raised, allowing us to borrow short-term money at a lower interest rate.
Now if we could just get the federal government to be as responsible with your tax money.
