!!!STATEHOUSE ALERT!!!STATEHOUSE ALERT!!!
An e-newsletter of the South Dakota Democratic Party sent to you because it's time to bring change to Pierre.
Date: January 13, 2009
STATEHOUSE ALERT'S TOP NEWS STORY
Higher taxes and fees and Rounds' "do-over" budget
The State of the State Address today found Gov. Mike Rounds announcing higher taxes and fees are coming along with a "do-over" budget which will delay progress in the 2009 Session of the S.D. Legislature until he unveils the revised budget Thursday, Jan. 22. Rounds said revenues are already slipping $5.1 million below projections, and that future projections show revenue receipts will continue declining, hence the need to go back and redraft a new budget.
The do-over derails the legislative process for a while. The Senate and House Appropriations Committee has little to work with while the budget is in limbo. Republicans in charge of Appropriations are warning non-profit advocates and program agencies to get their sales pitches tight and brief because the late budget is sure to produce a logjam in the 40-day session.
The budget is required by the state constitution to be delivered to the legislature in early December. Rounds did announce a budget in December, but only a month later he admitted he didn't realize revenue projections were running quite as low as they are. This caused one former Republican state senator to observe that Rounds' budget staff must only now realize the state is in the middle of a serious recession.
Rounds' current budget plan would force an increase in property taxes and would also increase taxes and fees to fatten up revenues, ideas which are very unpopular with the public and with legislators in both parties.
Observers say quick reaction from Democratic leaders Sen. Scott Heidepriem, D-Sioux Falls, and Rep. Bernie Hunhoff, D-Yankton, as well as Republican Senate Leader Dave Knudson helped to push Rounds closer to current economic realities. Heidepriem and Hunhoff said Democrats are developing their own ideas to prioritize available funds to meet critical needs and to grow the state's economy without shifting a greater burden on taxpayers. Knudson has been talking about cutting spending in general terms.
In December, Heidepriem and Hunhoff announced a plan to better prioritize state revenues and programs:
- Enact a real freeze on state employee positions that requires any additions be matched by equal reductions elsewhere in government.
- Limit state spending to no more than 3 percent or the rate of inflation, whichever is less.
- Implement zero-based budgeting which allows the legislature to work with the executive branch to analyze and reduce state spending.
Outlaw "pay to play" policies which appear to reward cronies with no-bid contracts. - Take steps to put South Dakota communities into the best position to take advantage of President-elect Barack Obama's major jobs and economic recovery package to encourage wind-energy development and launch new community-based wind energy projects.
- Limit the growth of the highest paid state employee positions to make sure compensation is not excessive considering the current economic crisis.
AROUND THE STATE
By Rick Hauffe, Executive Director, S.D. Democratic Party
There just has to be a better way to manage state government than the example of "crisis management" we are seeing today. The state constitution requires governors to produce a budget in December so that the legislature can act on it in January. Today, many legislators took office for their first term, and they are getting quite a shake down cruise because the administration in Pierre didn't seem to pay attention to the downward spiraling economy.
How could they miss it by this much that the Governor, now in his six year of office, has to scrap the budget he announced last month and hold up the legislature until Jan. 22? Saying "my bad" doesn't cut it.
The federal government began recognizing a significant recession was in play back in December 2007. Since then we've seen Wall Street wobble, crash, stumble and crash again. This economic disaster has ripped through the energy industry, the housing market, bottoming corn prices, the lending industry and up and down the Stock Market here and abroad. In December, how could they not see what can now see in January?
The image of state government in the Rounds administration has faired poorly in the last year. Today's first portion of the State of the State Address attempted to create the impression that Rounds' bureaucrats and political appointees now finally have a firm grasp on things. But a "do-over" budget in the midst of an economic crisis because they didn't see revenues dropping earlier just doesn't build reliability.
We, South Dakotans of both political parties, expect better than this from
our state's top elected leadership. Despite the second part of Rounds'
speech, which sought to distract attention from the first part with tributes
to war heroes and salutes to soldiers in the gallery and reminding us how
lucky we are to be in South Dakota, nothing was said which instilled
confidence that the administration in charge of fixing the problems is
really in touch with the realities of our present times.
Change is overdue in Pierre, and nothing demonstrated that more in recent
years than today's State of the State.
Your help is needed now to support our Legislative Project. The South Dakota Democratic Party provides professional staff and some of the best consultant support to our Democratic legislators. This newsletter is being sent to you to keep you informed of key issues and major developments in Pierre.
Change needs to come to Pierre. Your help will make sure we can make that happen. Without your help, and the help of your friends and neighbors who care about South Dakota's future, we might fall short of making the critical difference.
Please help us today with your check to SDDP for $100, $50, $25 or whatever you can afford today. By making a difference for the Democratic Party, you will help us and our legislators make a difference for South Dakota.
Change doesn't happen by itself. Make a big difference by sending your check today. Thank you so very much.
Paid for by South Dakota Democratic Party, P.O. Box 1485, Sioux Falls, SD 57101; Bill Nibbelink, Treasurer. Mail your check today to SDDP, P.O. Box 1485, Sioux Falls, SD 57101. To contribute online, visit sddp.org
Your contribution is not tax-deductible as a charitable contribution for Federal income tax purposes. Federal Election law requires political committees to report the name, mailing address, occupation and name of employer for each individual whose contributions aggregate in excess of $200 in a calendar year. Your contribution will be used in connection with Federal elections and is subject to the limits and prohibitions of the Federal Election Campaign Act.
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