Gov. Dennis Daugaard on Tuesday proposed a $4.1 billion state budget plan to the Legislature that would include modest spending increases on schools, health care and public worker salaries but that wouldn't make up for last year's deep spending cuts.
The Republican governor's plan calls for roughly 3 percent increases in spending on schools and universities, as well as hospitals, nursing homes and other facilities that provide medical services to the poor. The increases would more or less offset inflation, and education and health care officials have already said such hikes wouldn't come close to restoring 2011 funding cuts made to close a $127 million budget shortfall caused by the most recent recession.
Daugaard said the final budget, which the GOP-controlled Legislature must pass before adjourning in March, has to be based on conservative revenue estimates and must make sure ongoing revenue is sufficient to cover ongoing spending.