Gov. Dennis Daugaard does not support law changes to abolish structural deficits or place annual limits on state government spending, he said Monday.
Last week, during his budget address to the Legislature in Pierre, the new governor proposed $127 million in cuts to eliminate the state’s structural deficit. A “structural” deficit exists when a budget is balanced with money from sources such as reserves, while ongoing expenses remain greater than ongoing revenue.
The Legislature will need to find at least $39 million in additional general revenue to balance state government’s 2012 budget that starts next July 1, if no cuts are made, no programs are added and no pay raises are given.
Another $37 million of deficit would remain to be addressed for the 2013 budget.
View your ad here! Cost effective targeted advertising. Contextual advertising starting as low as $79/month. This includes targeted ad delivery and search results! Add your business to the Marketplace »