As Citizen Legislators we each bring experience and or baggage to Pierre. Both play a part in how and if a proposed bill becomes law. With over 450 bills each year, legislators are tasked with learning quickly about a wide range of issues, all within a 38-day session. It is a dauting task but one well worth it.
As I look back at this year’s session, my 5th, I see many good things happening. Legislators, coming from all walks of life have the best interest of the state and its constituents as their purpose.
A question I often ask myself is, why did I vote the way I did? Admittedly, many of the bills we debate have little influence on much of anything while others will have an immediate impact on people, industries and the long-term safety of our great state.
Too often we pat ourselves on the back when we accomplish what we feel are great things. It can be called Campaign Chatter. However, we should all feel good about lowering taxes by $104 million and increasing ongoing mandatory spending by $294 million, grounded on the assumption that our tax revenue will continue to grow at 3.8%. There were a few of us, mostly older legislators that were cautiously optimistic with that assumption as we remember past economic downturns and the struggles it created in taking care of our obligations. However, we operate as a democracy whereas most of the legislators felt differently.
The FY2023 supplemental budget and the FY2024 ongoing budget was balanced and is now waiting for the Governor’s signature or veto. The FY2023 supplemental and the FY2024 general budget both contain things in favor of the Governor proposed in her budget address in December. However, not everything was as the Governor proposed. Such as, the Governor wanted to reduce taxes by exempting tax on groceries at a cost of $104 million. The legislature preferred to reduce sales tax on all items from 4.5% to 4.2% at a cost of $104 million. The Governor recommended increasing costs incurred by Medicaid providers to 90% of cost. The legislature opted to increase funding to 100% of cost, at a cost of $30.5 million. The governor recommended increasing target pay of state employees, providers and education by 5%. The legislature preferred to increase state employees target pay by 7% and education by 7%, at a cost of $104 million. The legislature decided to freeze tuition at Public Universities and Tech Colleges at a cost of $15 million, the governor didn’t. The legislature opted to increase Medicaid reimbursement to dental, behavioral health, pediatric specialty hospital, children’s ICF, autism services, adult day service and auxiliary placements at a cost of $6.0 million, the governor didn’t. The legislature decided to fully fund Medicaid expansion at a cost of $77 million, the governor didn’t. All total, the legislature through the FY2024 budget expanded the on-going budget by $295 million. Why? Giving back to the taxpayers in the form of a tax cut and increased mandated spending is a goal of the legislature each year. The legislature felt that collecting taxes each year in excess of expenditures in the range of $200 million to $300 million is too large. Adjusting each year’s budget to balance near zero is a goal of the legislature.
Time will tell if the right decisions were made, but there is always next year which will bring its own priorities and problems. The interim Committee on Appropriations will continue to meet and receive financial information as well as begin preparing for the coming year. In other words, we will be keeping a close eye on current economic conditions and if necessary, adjust as needed.
My role as your Representative in Pierre is a commitment, I take seriously. Your comments, questions and suggestions are important, and I look forward to receiving them. Session is over but my responsibilities continue. Please feel free to contact me at lance.koth@sdlegislature.gov.