Governor lays out budget plan

Posted on Friday, January 23, 2009

AP-SD--Governor-New Budget (Tops),0167

Governor lays out plan of spending cuts and new revenue

PIERRE, S.D. (AP) - The governor wants to close the School for the Deaf and end financial support for the State Fair as part of a plan to balance the state budget next year.

He gave a revised budget to lawmakers today. He withdrew his first one after it became apparent that state tax collections are falling faster than expected because of the recession.

Governor Rounds proposes cutting $44 million in state spending in the next budget. Program changes would eliminate nearly 77 jobs in state government and there would be no pay raise for state workers.

He wants to boost fees and eliminate some sales tax exemptions to raise $9.6 million. He also wants to increase fees on Deadwood casino slot machines to bring in more state revenue.

Rounds proposes keeping a 3 percent boost in state aid to school districts next year, but he has recommended eliminating extra state aid that has gone to sparse school districts and those with big shifts in enrollment.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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