State Budget Cuts

The state is facing a serious budget shortfall for the fiscal year 2011.

Governor Mike Rounds has proposed using the state reserve funds to balance next year's budget.  But state lawmakers say using the reserves won’t fix the problem, so state republican lawmakers released a list of budget cuts and some programs could be on the chopping block.

State lawmakers have been tasked with the challenging job of balancing the state budget, and to do that cuts have to be made.

Jeff Haverly, Sen. District 35 says, "We need to take a serious look at how we can trim government at how we can make those ongoing costs go away."

Some of the trimming proposed by republican lawmakers include; $1 million for tourism and state development, $660,000 to the school for the deaf, $100,000 for tobacco prevention, and many more to equal more than $52 million.

Mark Kirkeby, Rep. District 35 said, "Times are tough and this is the responsible thing to do to reduce, eliminate, to be responsible."

Governor Rounds proposed using the reserve funds to balance the budget, but lawmakers say that should be a last resort.

Kirkeby also said, "I think it would be very irresponsible of us, with the state of our economy, to touch one cent of our reserves, especially with projections that we're going to be $100 million on the icky side of the ledger next year."

Haverly says, "If we don't do these cuts now, next year we're going to be faced with a insurmountable task of trying to find well over $100 million worth of cuts. I just don't think that is going to be possible."

There's just one week left in this legislative session.  And the budget process is far from over. So for now the cuts proposed are just that, a proposal.

Governor rounds will have the final veto on the budget and any cuts proposed by state law makers.

A. Proposed budget cuts for FY 2011 which will continue to roll forward in future fiscal years.

Legislative Travel                                                                                                                            $150,000

BOR MHEC and WICHE                                                                                                                $200,000

Drug Court                                                                                                                                        $300,000

Intensive Meth Program                                                                                                                 $1,700,000

DDN- Technology Reduction                                                                                                        $300,000

BOR PhD in Physics                                                                                                                        $970,000

BOR University Consortium                                                                                                          $265,000

Tobacco Prevention                                                                                                                        $2,300,000

BOR Student Tech Fellows                                                                                                            $770,000

School for the Deaf                                                                                                                          $660,000

State Fair                                                                                                                                           $100,000

ESA’s                                                                                                                                                 $500,000

Tourism and State Development                                                                                                   $1,000,000

BOR Co-op estension Service                                                                                                       $400,000

BOR ag experiment station                                                                                                             $500,000

Federal Medicaid clawback payment-to be applied to Medicaid program                             $6,500,000

Excess Personal Services                                                                                                                $4,000,000

Capital Expenditures, Travel and Supplies                                                                                  $4,000,000

2% Across the Board –excluding K-12 funding and Medicaid                                                $7,000,000

Large Project refund reform SB 195 and HB 1060                                                                       $11,500,000

Subtotal                                                                                                                                             $43,115,000

 

B. Program to be funded in FY 11 with one-time monies representing budget reductions in FY12

Tech School enrollment bubble                                                                                                     $2,700,000

GF&P parks division                                                                                                                       $500,000

School consolidation incentives                                                                                                   $800,000

 

C. Budget cuts not effective in FY 11 but effective in FY 12 and following years

Changes in growing enrollment program in K12 funding formula-HB 1248                           $3,500,000

 

D. Budget cuts for which alternative funding sources are being sought

Opportunity Scholarship                                                                                                                $2,000,000

 

Total                                                                                                                                                   $52,615,000

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