Friday, February 06, 2009
Statehouse Alert, Feb 6
An e-newsletter of the South Dakota Democratic Party sent to you... because it's time to bring change to Pierre.
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STATEHOUSE ALERT'S TOP NEWS STORIES
Republicans still ripping Rounds over budget dilemma and tax hikes
The Republican effort to force a 25 to 50 percent in state sales taxes is going over like a lead balloon in the State Capitol and on Main Street South Dakota. Democratic House members are hearing grumbling from GOP colleagues who are disillusioned with House Leader Bob Faehn of Watertown for knuckling under so soon for a sales tax increase. Here's a bit from a blog entry today on South Dakota War College, written by Republican blogger Pat Powers of Brookings:
I was talking to a fellow politico last night who brought up a pretty powerful point. His thought? How are these guys who are proposing tax increases going to explain why we need them to some guy who just lost his job? I mean really - for the group of Republicans proposing a temporary sales tax increase - those who we might term the "tax-and-spend gang of nine" - what are they going to say to that jobless guy who is now combing the classifieds and stopping twice a week down at job service? That they need to increase his taxes "to maintain and ensure the current level of operations for state government?" Guys, I don't think that one is going to sit too well. When Governor Janklow came back to office in 1994, one of the first things he did was to enact a sweeping across the board cut to state government. I was in state government at the time, and I remember at the time that it truly was "across the board." This is what people out in the trenches are looking for. Not tax increases - temporary or not - to maintain a standard of offices that are beyond some South Dakotan's personal means. Across the board cuts resonate with the populace. Tax increases don't, and in fact make people mad. Don't want to take my advice? Fine. At the end of the day it isn't up to me. But if a few of you find yourselves turned out of office in 2010 - don't say I didn't warn you.
A Keloland story interviewing folks on the street gets a similar reaction in this excerpt about Republican Sen. Gordon Howie's bill to increase sales taxes to lower property taxes:
"Anytime I hear that we are going to raise sales tax, I think, as a business owner, that that makes less money out there for people to spend. Right now is not the time. If anything we need to be lowering them so people can get out and stimulate the economy," business owner Jeff From said. From owns three salons in Sioux Falls and says an increase to the sales tax will hurt businesses, leaving more people laid off and fewer people with money to put back into the economy.
The criticism leads to Gov. Mike Rounds whose second budget proposal yanked funding for S.D. Arts Council, the School for the Deaf, the State Fair, young children health programs and adult dental coverage, among other essential needs of the state. The Republicans are angry that they're being coerced by Rounds to support a 25 percent or 50 percent increase in state sales taxes to repair the damage to the budget created by Rounds.
Rounds still refuses to consider a plan offered by Democrats at the beginning of this year's legislative session which identified across-the-board cuts and funding resources for the state's essential needs without increasing taxes. Rounds and the Republican leadership have criticized some of the Democrats' funding resources, saying it would be wrong to use one-time funding sources. However, when they say that, they ignore the fact that Rounds drained a one-time funding resource to balance his last few budgets when the economy was in much better shape. In another story today on the federal stimulus money, Rounds said the source was one-time money that he would spend to provide relief for the state.
"It means we wouldn't take money out of our savings accounts to pay that bill," Rounds said in a Pierre Capital Journal story. "But it would be one-time in nature and only give us some breathing room."
So much for the one-time money source excuse not to use available money to fund budget needs .
You can read more about the hardships Rounds has created for families whose children require the School for the Deaf at Keloland's website. Also, the Capital Journal is reporting on what Rounds is saying about using (or not using) likely Federal stimulus money. Change You Can't Depend on."
South Dakota still leads nation in moonlighting to survive
South Dakota's wages are so low compared to the rest of the nation that the state still maintains its distinction as the state with the highest percentage of moonlighting workers who hold multiple jobs to survive. The Argus Leader reported today that the U.S. Department of Labor's Bureau of Labor Statistics shows that South Dakota rates first and Nebraska rates second in workers who moonlight. It shows that 10.2 percent of South Dakotans had more than one job in 2007. The state's rate has increased each year since 2003, when 8.6 percent of the state's workers had two or more jobs.
AROUND THE STATE - By Rick Hauffe, SDDP Executive Director
Democrats made history in 1992 when they won a majority in the South Dakota Senate without a seated Democratic Governor. This victory was the result of four years of spirited teamwork between the S.D. Democratic Party and the Democratic legislators to win elections and run smart strategies during legislative sessions. But the key to that victory was Democrats holding the line in the 1991 session against some very punishing pressure by Republican legislative leaders to increase the state sales tax 12.5 percent and 25 percent.
By holding the line on taxes, Democrats were able to campaign in 1992 on a "no more taxes" battle cry and expose the Republicans as being phonies on their self-description as fiscal conservatives. We see the same stars lining up again in Pierre with Gov. Mike Rounds fumbling with two different budget proposals and calling his GOP legislative majorities "lacking guts" to raise taxes and fix his budget dilemma.
The mid-point of the 40-session-day 2009 Legislature is Wednesday, yet for some GOP legislators, the strain already feels like the session must be much further along. No doubt, they'd like to hang together behind their Governor and behind their House Leader Bob Faehn and Senate Leader Dave Knudson, but their gut instincts are telling them they are headed for political disaster back home in their districts.
As GOP blogmeister Pat Powers said earlier in this newsletter, "for the group of Republicans proposing a temporary sales tax increase - those who we might term the 'tax-and-spend gang of nine' - what are they going to say to that jobless guy who is now combing the classifieds and stopping twice a week down at job service?"
As we near Day 20, we have to keep in mind that there is still plenty of time left. Much can happen and fortunes can spin around.
At the beginning of this session, Senator Scott Heidepriem and Rep. Bernie Hunhoff introduced a common sense plan that solved the problems for the Fiscal Year 2010 budget without imposing tax hikes on people who are seriously strapped by the economy. To get out of the trap Rounds created for them with the false premise that either essential programs get eliminated or taxes must increase, Republican legislators have a third alternative. They could embrace the Democrats' plan to balance FY-2010's budget and move along.
For a happy result for both parties, two things must be off the table: Tax hikes and debilitating budget cuts on critically important programs. The money to balance the budget is available now. More money is coming from Congress. Republican legislators might want to tell Rounds the sky is not falling. Their Democratic colleagues really know what they're doing.
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 until April 1, 2009.
By making a difference for the Democratic Party, you will help us and our legislators make a difference for South Dakota. Please make your contribution online with ActBlue, or mail your check to SDDP, P.O. Box 1485, Sioux Falls, SD 57101.
Paid for by South Dakota Democratic Party, P.O. Box 1485, Sioux Falls, SD 57101; Bill Nibbelink, Treasurer. Political contributions are not tax-deductible as a charitable contribution for Federal income tax purposes.
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