Lawmakers say one-time money an issue in SD budget

• Gov. Daugaard

Gov. Dennis Daugaard delivers his State of the State address at the State Capitol in Pierre on Jan. 10, 2012. Doctors and hospitals in South Dakota are urging the state to expand its Medicaid program. Daugaard said he would consider expanding Medicaid in South Dakota but not until the state knows more about the cost and how much flexibility states will have. (AP Photo/Doug Dreyer)

Talk about it

PIERRE (AP) — The use of one-time revenue will be a key issue in crafting South Dakota's budget, legislative leaders said Monday after a closed-door session with Gov. Dennis Daugaard.

Five members of the GOP majority met with the Republican governor to discuss his proposed state budget, which he will unveil next week in a speech to a joint session of the Legislature. The lawmakers declined to reveal details, but said budget decisions will include money available only for one-time use. One-time money comes from reserves or other sources that are not part of ongoing tax collections.

Senate Republican Leader Russell Olson of Wentworth said school districts and Medicaid providers prefer dedicated long-term funding that's available year after year, but they may be happy to receive the extra funding. He said he'll talk with school officials and health care representatives to get their views.

"You get mixed signals from those folks. Some say they don't want one-time money and others say: 'Hey, one-time money is great, bring it by the truckload,' " said Olson, who set up Monday's meeting with Daugaard.

The current state budget authorizes the spending of $4 billion in the fiscal year that ends June 30, and about $1.2 billion is from general state funds. It also authorizes spending another $1.75 billion in federal funds and $1 billion in other state funds dedicated to specific purposes, such as highway construction and maintenance.

State officials report that through September, general state revenue for the first three months for the current budget year was up 1.6 percent from what the Legislature expected.

However, House Assistant Republican Leader Justin Cronin of Gettysburg said the task of putting together a state budget is complicated by uncertainty over how much money the federal government will give the state. Congress and President Barack Obama face a Dec. 31 deadline to craft a deficit-reduction plan. If they fail, taxes will rise and automatic cuts to government programs will kick in.

Cronin said many Republican lawmakers want to hold down increases in state spending, particularly with the possibility of a drop in federal aid to the state.

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