South Dakota legislators are heading into the last five days of the main run of the session preparing for yet another familiar fight – the state budget.
And once again, District 22 lawmakers are finding themselves seeking allies to defend funding for the State Fair. After about $380,000 was sliced from the appropriation two years ago, the Republican plan unveiled last week recommends cutting another $100,000.
“That will be another battle,” Rep. Peggy Gibson, D-Huron, said at Saturday’s final Coffee with the Legislators forum.
Rep. Quinten Burg, D-Wessington Springs, from his seat on the powerful Joint Appropriations Committee, vowed to do all he can to keep State Fair funding intact.
Republicans want to see $52 million in cuts to balance the budget. Gov. Mike Rounds and Democrats think the state should dip into “rainy day” funds.
“These cuts will be a big fight this week,” Burg said, noting that Republicans have come back with the same list of proposed cuts as a year ago, plus cuts of 2 percent across-the-board.
“Most of these are very short-sighted,” he said. “As quiet as it’s been the last three weeks, I thought there would be a lot more originality than there was.”
He also reiterated that he thinks state government should do a better job helping local governments balance their budgets.
Still, there is optimism from the governor that the economy has hit the bottom and that sales tax revenues will rebound. New numbers are due Monday.
Sen. Tom Hansen, R-Huron, said GOP proposals to cut the budget and fill a $30 to $40 million hole will come in the form of amendments this week.
“We’ll get a chance to lay out our case,” he said regarding State Fair funding.
It’s the best example of the three local legislators working together with allies to support the fair, he said.
“The State Fair is an entity that does generate revenue,” Hansen said.
Gibson agreed, saying the fair – preparing to celebrate its 125th anniversary – is a valuable asset.
Burg doesn’t see wide support to cut $100,000 out of the fair’s budget. He also isn’t sure where the idea came from among Republican lawmakers.
“When we come down to it, we’ve had a lot of good support,” he said.
Gibson thinks it’s not necessarily the Sioux Falls delegation that is sour on the fair, but perhaps West River lawmakers who don’t care what happens with it.
She was disappointed to see proposals to cut $300,000 from the drug court program and $1.7 million from the intensive methamphetamine program at the women’s prison.
That would eliminate 16 jobs and the inmates would have to be cared for anyway, Burg said. In its three to four years of existence, the program is solid and valuable, he said.
Legislators have cut $150,000 of in-state and out-of-state travel, or about 10 to 15 percent of the travel budget.
Burg said he has had no out-of-state legislative travel for the last four years, while Gibson said she has taken two educational trips, but paid for most of it herself.
Hansen said a fair amount of his trips are paid through stipends by foundations hosting conferences. He is a member of some national boards and they pick up some costs.
Burg said legislators have voluntarily cut back on travel in the past year.
“A lot of legislators have really backed off,” he said.
Constituents interested in legislative travel numbers can get information by contacting the Legislative Research Council, Gibson said.
There is no law requiring disclosure of legislative travel when it’s paid by outside entities.
State government has come a long way with openness, but people should be able to find out which groups are paying for travel and who is going, Burg said.
Meanwhile, he said it’s ill-conceived to cut tax incentives for large industrial projects in the state. Republicans want to cut $11.5 million.
Five years ago, South Dakota didn’t hear of $100 million projects and now billion-dollar projects are out there, he said.
He suggested the issue be part of a summer study so legislators learn about the long-term consequences.
“I think this is a very knee-jerk reaction,” Burg said.
“I don’t like, let’s make a deal and then renege on the deal,” Gibson added.
A recession is not the time to increase the sales tax to balance the budget, the lawmakers said in answer to an audience question.
The tax hurts residents who can least afford it, Burg said. The state invests money in reserves for times like these, he said.
People are vehemently opposed to any sales tax increase and using reserve funds should be the way to go, Gibson said.
Sales tax bills have been introduced, but it takes a two-thirds majority for passage.
“The will is not there on the part of legislators to increase the sales tax,” Hansen said.
For the complete article see the 03-07-2010 issue.
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