State House Committee Approves Proposed Constitutional Amendment
Air Date:02/06/2012
Lawmakers in Pierre are asking voters to decide on a new constitutional amendment mandating a balanced budget in South Dakota.
Proponents argue that the current constitution isn't clear on the balanced budget mandate and this could hurt South Dakota's Credit Rating.
Those opposed to the change argue that South Dakota call this a political move and say a constitutional amendment is unnecessary.
Jason Dilges the States Chief Financial Officer argues that a constitutional amendment will strengthen the current credit rating by basically giving the state points for practices already in place.
"The stronger foundation that state has the better the credit rating and the cheaper the interest rate on the bonds. Just like if you go out and originate a mortgage after defaulted on a previous one obviously the rate you would get would be different than if you had an impeccable history of making your payments. So the reason why it's a big deal it effects a how much we'll pay for future debt that we will incur--that these authorities will incur," says Dilges.
The committee went on to pass the resolution by a vote of nine to three.
But it must first pass the full state house, senate, and governor's desk before voters get a say on any constitutional change.
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