Alcester Union & Hudsonite Online

The state's budget could increase $23.9 million, but no new taxes are being proposed. That's according to Gov. Mike Rounds, who delivered his annual budget address for the 2008-2009 fiscal year on Dec. 4 at the state capitol.

He described his proposal as a "limited-growth budget."

By using our budget reserves wisely, Rounds said, no new tax dollars should be needed to meet the needs of the state during the next fiscal year.

Legislators will consider the governor's proposed budget when they begin meeting in Pierre on Jan. 8.

Rounds said that, under his proposed budget, 50 cents of every tax dollar would go toward state aid to education; approximately 33 cents of every tax dollar would be spent in areas of public health, such as Medicaid and Title 19 programs; eight cents per tax dollar would go toward public safety, the court system and corrections programs; and the remaining six cents of every tax dollar will cover all remaining state government expenditures.

Rounds said those percentages are the same as those proposed in last year's budget.

The proposed budget involves a $10 million revolving loan fund for energy conservation in the state. This fund would give low-interest loans to qualifying applicants for energy improvements.

“The most competitive and economically desirable programs would be funded first,” Rounds said. Qualifying entities include school districts, local governments, universities and state agencies.

Rounds said $11.8 million will be spent to bring high-speed internet lines into South Dakota. "[The lines] will connect us with some of the highest speed lines in the world," he said.

Rounds said the development of such lines in the state will encourage research and bring the state closer to its goals of the 2010 Initiative. The High Speed Research, Education and Economic Development Network (REED) will give universities and research centers the ability to share large amounts of data with scientists around the world.

SDN Communications of Sioux Falls will build the network. It will connect the six state universities, EROS Data Center and the Sanford Laboratory at the Homestake mine in Lead. SDN is owned by the independent telephone companies of South Dakota.

The agreement, which needs legislative approval, is a $30 million, 20-year project. The Great Plains Education Foundation donated $8 million to begin work on the project.

Rounds said under his proposed budget, K-12 education in South Dakota would receive $22.7 million out of the total $35.8 million in education dollars.

"I hope the money doesn't just go to the cash balance of a school district," Rounds said. "I think some of those dollars should go into teacher salaries and improving education."

Looking at last year, Rounds said he wants to convert some special funding into continual funding. This year the state fair received $750,000 in emergency funding, and Rounds said he wants that money to be included in the general bill next year.

He said he wants the money used to protect South Dakotans from natural disasters, such as fires in the Black Hills and the flood in Hermosa, to come from the state’s general fund rather than emergency funding.

Rounds said he anticipates revenue to be around $1.2 billion, and the remaining resources needed for the budget -- $4.6 million -- would come from reserves. The budget contains $4.9 million in special or emergency funding.

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