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Daugaard’s Half-Penny Sales Tax Still Leaves Pierre Shirking K-12 Funding Burden

House Bill 1182, Governor Dennis Daugaard’s half-penny sales tax increase to fund teacher pay raises, goes to the full House today for debate.

Among the numerous data points that should inform that debate is this analysis of federal data on education funding that repeats analysis this blog and South Dakota Dashboard have offered: South Dakota state government provides the least support in the nation for K-12 education while relying more on federal funds for K-12 education than all but two other states:

Federal, state, and local K-12 spending by state, based on U.S. Census data, 2013
Federal, state, and local K-12 spending by state, based on U.S. Census data, 2013

The Federalist posts this data to blast the waste of federal taxpayer dollars on “lackluster” public education (which reminds me, we need to defeat SB 159, the return of last year’s stealth voucher bill, but that’s another blog post). But the relevant point here is that, whatever amount you think the feds ought to contribute to public education, South Dakota has been relying a lot more on the feds and a lot less on its own statewide wealth than nearly every other state in the Union.

If the Legislature approves the Governor’s plan, it would add $67.4 million to the state’s share of K-12 funding. Based on the 2013 numbers presented above, that additional state funding would decrease the federal share of our K-12 funding to 14.09%, increase the state share to 34.41%, and decrease the local share to 51.50%. On the above chart, we’d still be relying on the feds more than all but five other states, providing a smaller share of K-12 costs from state funds than all but one other state, and placing the eleventh-highest burden on local districts (changing places with only two states in the 2013 rankings).

8 Comments

  1. Bill Dithmer

    South Dakota, robbing Peter to pay Paul. Any time they move money to the general fund, you can bet that money will shrink from its former size.

    I cant figure out if the people that are proposing this are stupid, or if they think the electorate is that dumb.

    The Blindman

  2. Donald Pay

    SD state government has long shirked it’s responsibility. Why is that, given that the poor and middle class are taxed about the same as in adjacent states? A bad tax climate—one that soaks the poor and middle class and refuses to tax the wealthy.

    If you break down how states get their revenue you find out South Dakota taxes the poor and middle class about equivalent to adjacent states. It’s the wealthy in SD who don’t pay their fair share, not even close to what the wealthy pay in adjacent states. That’s the problem. If you find a revenue stream that taxes the wealthy you solve the problem. That isn’t the sales tax or gambling revenue. But that’s the Republicans answer, because they can’t really tax the people who pay them off.

  3. The GOP can’t tax the people who pay them off… the GOP peddles a great tax climate that’s really great only for their target audience of more wealthy donors… the funny thing is, even if I read the GOP agenda as nothing but a cynical agenda to get more right-leaning rich people to move here, those rich people aren’t moving here. They aren’t bringing their Fortune 500 companies here. The corporate mags and analysts who calculate our supposedly wonderful tax and business ratings never move their operations here.

    Give me a couple terms as Senate Majority Leader, and we’ll make some changes that will keep wealth and talent here and bring more from elsewhere.

  4. Lynn

    “Give me a couple terms as Senate Majority Leader, and we’ll make some changes that will keep wealth and talent here and bring more from elsewhere.”

    It’s always good to dream.

  5. Les

    Everything begins with a thought, Lynn. Be cool. You disagree with Cory on something but can you say he is not honest and willing to work hard?

  6. larry kurtz

    Give me a rocket launcher, it’s always good to dream.

  7. jerry

    Lynn, your tea party is showing, hike it up a bit.

  8. jerry

    The more you try to sell something to the rich, the more they force into a corner. All these get rich schemes have done to the state is create a situation of graft and corruption that does not bring anything to the state but lawsuits, that we loose. Expand Medicaid to generate funds to take care of health needs and a big ol hunk of teacher funding. Revisit the gaming industry here and give teachers more of the stake we were all promised when the pact first came about.

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