The 2010 Legislative Session is underway and the state's budget is at the forefront of everyone's minds. South Dakota, like the rest of the country, continues to face some tough decisions and we as a body must decide what is best for our state.
The State of South Dakota has $107 million in unrestricted reserves (our savings account). Projections of this year's revenue were off by $10 million and that needs to be addressed before we move onto the 2011 budget. Most of that $10 million will be made up from cuts internally and some transfers of "one-time" monies.
Speaking of the 2011 budget, Governor Rounds proposed a budget in December that called for using $32 million of our reserves which would only leave $75 million in savings going forward. That's less than one month's operating expenses.
The forecast for 2012 doesn't look any better. As a matter of fact, economists are predicting a $110 million shortfall.
Based on those projections, I am supporting a plan that calls for running our State Government like we South Dakotans are expected to run our homes and businesses. We shouldn't spend more than we earn. We'll need to find an additional $32 million in cuts from the Governor's proposed 2011 budget. This won't be easy or popular, but I believe we need to make tough decisions this year to prepare for 2012's $110 million shortfall.
Please pray for the men and women of the 211th serving our state and our country.
As always, it is an honor to serve as your State Senator. Please contact me with any advice or concerns.
Russell Olson
