Sad that the Argus Leader, the Mitchell Daily Republic, and the Aberdeen News continue to repeat the Daugaard propaganda that there is a $127 million budget deficit due to the supposedly ongoing recession. If you look at page 19 of the Governor's budget summary who will see that General fund revenue projections for FY2012 are going up from FY2010. Sales tax receipts were $652,115,527 in 2010, and are expected to increases nearly 9% to $709,340,328. That is a $57 million increases in sales tax revenues, which means the recession is over. National GDP numbers confirm that point.
The FY2010 revenue from continuing receipts (excludes one-time receipts) was $1,109,795,746 for the General Fund. Actual FY2010 General Fund spending was $1,121,828,785. So the structural deficit in FY2010 was only $12 million, not even close to the $127 million figure everyone (politicians and their media cohorrs) is repeating to South Dakotans. Those same ongoing revenues are expected to be $1,165,243,298 for FY2012, up $60 million from 2010. As noted before, spending is going down $2 million in the FY2012 budget versus actual FY2010 spending at $1,119.988.080. So the FY2012 budget has a $45 million surplus (1.165 billion less 1.120 billion) Therefore, we can increase the FY2012 budget $45 million before we begin to create a structural deficit.
The above analysis completely destroys the point Bob Mercer is making accross the state:
Q. What caused the $127 million structural deficit?
A. State government ran deficits most of the eight years that the previous governor, Mike Rounds, was in office. These were covered at first by budgeting maneuvers. Legislators repeatedly succumbed to pressure by public school lobbyists for extra money in various forms while Rounds was governor.
The deficit problem's roots can be found in several circumstances. There was the repeal of the inheritance tax by voters in 2000, the post 9/11 recession and the loss of much of the gold-mining industry in the Black Hills. The structural deficit then mushroomed as the recession took grip in 2009. State sales tax revenue, for example, actually went backward in 2010.
But as the numbers show, the 2012 estimates on sales tax shows a huge 9% rebound, there is not $127 million structural deficit (in fact we have a huge surplus), and the federal government continues to poor 100s of millions of extra dollars we never had before the recession (a recession that is now over and has been for a while). Not sure why Bob Mercer continues to carry water for the tax and spend liberals of the SDGOP. Last week I tried to reason with him (I even apologized), but this latest piece of work is very disappointing. His analysis has a lot of detail, but there is much that is missing. And those parts to not fit into the fairytale that South Dakota has a budget crisis due to a recession that has reduced revenues. South Dakota state govermemnt was a $3 billion monster in 2008, now is is nearing $4 billion.
Again...the SDGOP is blowing smoke with the budget crisis myth (and we thought only the Democrats use the Cloward-Piven strategy), and later I will show that their aim is to push more of the state funding burden onto the backs of property owners, many of whom are not getting adequate governmental services in regard to road repair. The SDGOP and the South Dakota media has fabricated a crisis that does not exist in order to justify more taxes and more government. The strategy of getting the vast education lobby behind them is working. As Mercer pointed out, the Educrats are good at getting more money. Unfortunately is goes mainly to bureaucrats (Educrats) and not the teachers. The children are not benefiting. Instead they are going to be faced with with a huge National Debt that is funding this masquerade.