Governor Dennis Daugaard’s proposed $4 billion budget for FY2014 includes a three percent increase for education and Medicaid but leaves more than $10 million uncommitted. Joy Smolnisky, Director, South Dakota Budget and Policy Project, says research still needs to be done to see how the proposed budget will affect South Dakotans. The governor also proposes a three percent salary increase for state employees. Smolnisky says it is a larger increase relative to increases for education and Medicaid. She says Daugaard has made his recommendations and lawmakers have the final say.
“This budget addresses an ongoing cost of government, but doesn’t address the cuts that were implemented in fiscal year 2012. So, those cuts haven’t been recovered by the service providers; which would be the various entities of government. And so those entities are going to have to realize that unless there’s a change in the budget proposal they won’t recoup those lost funds from fiscal year 2012. This budget will give them ongoing funds with a cost of living increase,” says Smolnisky.
Smolnisky says legislators need to examine the cautious budget proposed by Daugaard and decide if it is best for their constituents. She says first lawmakers must decide if they address cuts made two years ago or move forward at the current rate of spending.
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