Details from District 12: Legislature awards ‘big three’ due increases

By: 
State Sen. Steve Kolbeck

This week we conclude the 2023 legislative session weekly updates. Representatives Kull, Sjaarda, and I are done in Pierre except for Veto Day, which is March 28. Currently there are three veto messages that could be overridden when we head back for the day. There will probably be at least two more. As I write this, the Governor has 84 bills yet to sign on her desk. We will wait and see how that plays out. 

For now, though, how about we focus on the positive things that did get accomplished. Assuming the budget is signed, we can be thankful for a 7 percent increase for schools, state employees, and healthy adjustments for providers. This is what is called the “big three” in state appropriations. The three divisions listed are the bulk of spending the State of South Dakota does every year. 

Brandon Valley and Sioux Falls schools in District 2 are some of, if not the best, in the state and we are delighted that they will share in the increases.

Another was SB 140, which I sponsored, and SB 161 that both help secure future elections in South Dakota. We heard in the primaries last year that voter integrity was important for a lot of people and these two bills will help. HB 1090 was another real accomplishment that will protect agriculture operations from frivolous claims that can delay development for producers.

Lastly, the Legislature reduced the sales and use tax rate from 4.5 to 4.2 percent. South Dakota is a fiscally conservative state. We balance our budget and meet our obligations to serve our residents. In four years, the one-time federal ARPA (American Rescue Plan Act) dollars will have fully cycled through the economy and we will have a clearer understanding of the real cost of Medicaid expansion. While lawmakers don’t have a crystal ball to see the future, we do look at trends in the economy and listen to the experts. No one knows if the recent surpluses are the new normal or the result of inflation and the influx of federal dollars related to COVID relief.

Because of these concerns, the sales tax cut has a four-year sunset clause, which allows legislators to revisit tax cuts in the future. Simply put, with the artificial federal stimulus dollars still impacting our economy, it’s fiscally irresponsible to reduce taxes without a trigger or insurance plan if the economy takes a turn for the worse. In the end the Legislature approved the largest tax cut in South Dakota history after months of careful debate.

Thank you all for your correspondence and please reach out with any questions or concerns. In conclusion, I’d like to thank John Sjaarda and Dave Kull for their camaraderie and genuine concern for District 2’s success. It was a pleasure serving with both of you this year. 

 

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