Lawmakers have passed a budget totaling just over 4.3 billion dollars for fiscal year 2016. Even though revenue projections were down from original estimates the legislature was still able to provide increases to education, Medicaid reimbursements and state employee salaries.
The 4.3 billion dollar budget includes other funds, federal dollars and around 1.4 billion dollars in state general fund spending. It provides a 2% increase for state employee salaries and a 2% increase to education funding. It also increases Medicaid reimbursement payments to hospitals by 1.65%. It increases Medicaid reimbursements to nursing homes, long-term care providers and community mental health centers by 2.5%. The budget also includes over 3 million dollars for juvenile justice reform .
Some proposals did not make it into the budget like a Medicaid prenatal program for noncitizens and extra funding for the Teach for America program. Even though lawmakers approved an increase to the Opportunity Scholarship for future recipients the budget did not provide a tuition freeze for colleges and universities. Because of lower than expected budget revenues lawmakers had to cut around 10.4 million dollars from the Governor’s proposed budget.
Senator Tim Rave says even though everyone didn’t get what they wanted the budget does a lot of great things for the State of South Dakota.
"I’ve been here thirteen sessions and never have we had a budget that does enough. And that’s ok because that’s why we’re elected to come back next year, and the next year, and the next year. That’s our job. We’re here to take care of the taxpayers and the citizens of the state. That’s why they send us out here. Every year we do something to make this state just a little bit better than the year before," says Rave.
Not everyone was completely happy with the outcome of the budget. Some lawmakers wanted more money put towards education and Medicaid while others felt the budget shifted the burden of spending onto local property tax payers. Representative Ray Ring was on the appropriations committee and did vote for the budget. But he says it’s time to recognize that we don’t have enough resources to fully cover the basic needs of South Dakota.
"I think at some point we have to say enough making due, enough satisficing, enough band-aids. Let’s step back and take a broader, get a broader perspective, study the situation. And I would start with the tax system," says Ring
The 2016 budget passed both the House and Senate late Friday night. It now moves to the Governor for his final approval.
