December 19, 2017 • Page 4 shop online at www.missourivalleyshopper.com Confronting the Realities of Another Lean Year By Gov. Dennis Daugaard The Capitol Building was a busy place on Dec. 5 when lawmakers came to town for the annual Budget Address. They packed the state House early that afternoon to hear about our current economic situation and my proposal for the upcoming budget year. With revenue trending below projections, I doubt legislators were surprised when I explained we face another lean year. The projected tax revenue for this budget year will leave us $20 million short. To compound that, we have 450 more students enrolled in our schools than anticipated. This is a good problem. Higher student enrollment means our state is growing. But it’s a problem that adds another $10 million to the gap for this fiscal year. The revenue shortfall and enrollment growth must be combined with emergency costs that will need to be covered. Unaddressed, this would leave us $34 million in the red this year. We need to fill that hole to balance in fiscal year 2018, and then adopt a balanced budget for the 2019 fiscal year. I am proposing we fill the current year gap by reducing expenses where we are able, and using one-time cash sources, including funds from our reserves. This would still leave our reserves at a healthy level of 10 percent of our general fund spending. For the upcoming fiscal year, I cannot recommend inflationary increases for education, Medicaid providers or state employees. Inflationary increases would cost about $58 million and we have only $32 million in new recurring revenue. Still, although we cannot afford inflationary increases, I am proposing we dedicate the majority of new recurring 1000 Auctions – Public 1200 Sales Donate GILBERTS SALE YARD MACHINERY CONSIGNMENT SALE, JAN. 15, 9:00 A.M.. Adverting Deadline Dec. 29. No Small Items, Tires after Jan. 5. CONSIGN TODAY, 641-3982218, Hwy 218, Floyd, IA, www.gilbertsaleyard.com (MCN) revenue to those three priority areas. I am recommending the largest funding increase go to K-12 education to cover next 1101 Announcements year’s higher enrollment. Events Second, I propose we complete a plan, begun two years ago, to better reimburse PLEASE NOTE community-based Medicaid providers for This publication does not actual costs. This will allow us to keep knowingly accept frauduour promise to those who serve the most lent or deceptive advertisvulnerable in our state. ing. Readers are cautioned to thoroughly investigate And for state employees, I am recomall ads, especially those mending a very modest amount to keep asking for money in adsome employee pay, which is already vance or ads that sound lower than market, from falling even too good to be true. further behind. Although the situation is not ideal, we 1200 Cars must remember that our state has been through tougher times. 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