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Legislature Approves $2B+ General Fund, 47% Dependence on Feds, Just Like Noem Wanted

I’m not sure why Governor Kristi Noem would want to veto Senate Bill 210, the state budget passed by veto-proof majorities in both chambers last week. SB 210 gives Governor Noem the two biggest things she wanted:

  1. The first South Dakota budget appropriating more than $2 billion in general funds.
  2. 47% of the state’s spending covered by federal funds.

Compare the spending Noem recommended with the fiscal action the Legislature adopted last week:

FY 2024: Noem proposed FY 2024: SDLeg passed FY 2019: Actual FY 2024 SDLeg/Noem FY 2024 SD Leg/FY 2019
General $ 2,190,378,155 $ 2,274,470,981 $ 1,589,929,931 3.84% 43.05%
Federal $ 3,428,665,803 $ 3,469,845,765 $ 1,431,971,864 1.20% 142.31%
Other $ 1,622,192,537 $ 1,630,584,143 $ 1,291,713,959 0.52% 26.23%
Total $ 7,241,236,495 $ 7,374,900,889 $ 4,313,615,754 1.85% 70.97%
FTE 14,063.4 14,066.4 13,235.9 0.02% 6.27%
FY 2024 Fed/Total 47.35% 47.05% 33.20%

The Legislature sugared Noem’s original proposal with an extra 1.85% in total spending. 63% of the Legislative frosting on Noem’s cake comes in extra general funds; 31% comes in additional federal spending. The Legislature’s general-fund-heavy generosity, fueled as usual by updated revenue projections showing more money coming in than expected at the time the Governor proposed her four months ago, knocked the FY2024 budget’s federal dependence down by 0.3 percentage points (just like the sales tax!), but SB 210 keeps South Dakota’s dependence on Biden Bucks just above 47, like Noem wanted. So throughout the coming fiscal year, nearly half of what you see your state government doing will actually be funded by Uncle Sam. (Again, send your thank-you cards to your neighbors in New York, California, Minnesota, and other prosperous blue states who make your low state taxes possible.)

And compare the very Noemy adopted budget with the last budget of the previous administration, FY 2019 enacted under Governor Dennis Daugaard. Noem and the Legislature both more than doubled the amount of federal dollars they are willing to spend. Noem’s budget would have spent 67.87% more than Grandpa Cheap‘s last budget; the Legislature cranked that five-year growth in state government up to 70.97%. If Noem signs SB 210, she will continue the expansion of state spending and staff that she has effectively promoted since the beginning of her administration.

Noem is getting everything she wanted in the state budget and then some. Why veto an entire budget that does everything Noem wants over a minor tussle over the mechanics of funding enacted in a separate bill?

8 Comments

  1. Tim 2023-03-14

    She will work this for maximum Fox Nooz effect knowing any veto will be overridden. At the end of the day she gets what she wants, keeps the tax on food and has someone else to blame for it.

  2. Tim 2023-03-14

    In the meantime, what is everybody going to do with their .30 cent on the 100 dollar windfall the legislature gifted us?

  3. All Mammal 2023-03-14

    Tim- Buy more (subsidized) meth! It’s cheaper than food.

  4. Bryce Healy 2023-03-14

    Tim,

    I was going to go to B and G Milkyway twice a week for a year. I think it is down to once a month just for the summer months!

  5. Loren 2023-03-14

    Kristi would be further ahead if she just followed Thune’s example, show up for the photo op and keep your mouth shut. And, speaking of meth, I was looking at the new license plates. I thought we paid good money for someone to come up with the motto, “Meth, we’re on it,” but I see it is the same old “Faces/Places.” ;-)

  6. Jake 2023-03-14

    For the life of me, I can’t seem to fathom how a major political party of a state like SD (the GOP) can remain so popular with voters for such a long span of time! When 47 % of the budget they struggled to come up with coming from “Blue” states like Minnesota, California, New York and others support the governance of this state with their tax-dollars thru the Federal money passed gracefully to us after all the “bad-mouthing” Noem and other prominent Republicans throw at the liberals and Democrats they despise. There just is no shame evident in the consciences (do they have one?) of the GOP anymore.

    Revenge, Retribution and Retaliation are the three “R’s” of the GOP in today’s political scene. While the Democrats steadily, but surely move forward toward the good of the country for all, not just the “well-to-do”. as the GOP does and has for ages.

  7. ABC 2023-03-15

    Tim, any amount of money makes you and I rich! 3 cents per $10, I’m there, rich as
    a Billionaire. It’s all about what your 3 cents or 30 cents can do, soon to be liberated money!
    If your 30 cents does what Apple or Google can’t imagine, you’re there in DaVinci territory!

    Be unimaginably good! Be 19 forever, dawn any time

  8. Jake 2023-03-15

    Cory, do you have any idea what other states in this glorious country (of Noem’s thinking) have such an ongoing record of achieving suckling at the “tits” of our federal largesse? Are there any as “bad” as us???!!!

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