Factors For Funding Cuts

Air Date:01/21/2011

By Kealey Bultena

State lawmakers are wrapping up week two of the 2011 legislative session, and they are are weighing the pros and cons of looming budget decisions. 

Majority leaders from the state Senate and House of Representatives say it’s naïve to think South Dakota can resolve budget problems without cutting money from education and Medicaid. Representative David Lust says legislators are considering all funding options for programs that face decreases.

"When you’re looking at these cuts, things I would recommend we consider are what other sources of revenue may they have? Are there reserve funds that specific agencies may have or entities may have? What other sources of revenue can they leverage? Are there federal dollars, are there private dollars? So those things will be in the mix of thing we consider, as well as obviously the impact of the cuts," Lust says.

Republican leaders say the budget needs to balance this year, and they won’t use reserve funds to help. But top Democrats say those reserves could preserve public programs while solving the shortfall over three years.

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