Entries Tagged 'State Funding' ↓

UPDATE: More Games

After such a nice victory in Taxation Committee this morning, a move led by Rep.Faehn in the House this afternoon has now sent HB1255 to Appropriations Committee on Monday morning for its next vote, rather than the full House. So here we go. Your contacts were  wonderful to the last committee. Let’s convince this one too! The people need this tax shift.

If you need any further inspiration, read this from Matt Gassen, Director of Community Food Banks of SD (which distributes food to over 500 agencies in SD)
“No other tax so directly takes food off the family table as the current 4% state tax on food items. To shift the tax off food as proposed in HB 1255 could be one of the single most significant pieces of legislation to impact the hungry of South Dakota in a long time. With the continuing increase in the numbers of individuals (78,000 statewide) seeking emergency food assistance a recent study shows that 32% choose between buying groceries and paying for utilities or heating fuel, 29% choose between food and rent/mortgages and 32% choose between food and gas for their cars. The passage of this bill would make the family budget go farther and increase the amount of food that their grocery dollars would buy. It could also help to ease the strain on emergency feeding programs who are struggling to find enough food to help all those in need.”

Next to house floor – needs 2/3 vote

HB1255 is a revenue-neutral tax shift. The state comes out even with the shift from the 4% state portion of food tax to  3/10% on non-food sales. It is revenue-neutral for the state, but middle- and lower-income people will be better able to afford their basic needs. Better than refund programs. The benefit comes right at the grocery store, to reduce hunger, and improve health and family financial stability.

What about the argument that taxing food provides the state a “stable source of revenue”? This is a line of reasoning from a time when the economy was better, and the worry was  that when times get tough, at least there would be revenue coming from grocery purchases. Well, times are tough. This is the down time. Making a revenue-neutral tax shift when the economy is down would take the worry out of taking tax off food. This is the time to make the shift. The issue will continue until the tax comes off food, so legislators would be wise to do it now. (Does this make sense? There should be a more concise way to explain it.)

Advocates, We learned something since yesterday, namely that HB1198 (to allow more sales tax for new city projects) comes up on Thursday. So contacts are needed to the committee members who will vote on Thursday. Urge them to oppose this bill.

The news of the hearing comes from the Sioux Falls Chamber of Commerce, a big supporter of HB1198. They want 1% more sales tax for an event center. (Other cities might want to raise sales tax for their new projects.) They put out legi contact info (copied below) to their members.

Please urge Rep’s to OPPOSE HB1198, because it would be problematic for the cost of living to go up, which would happen if cities raise sales tax. I personally think it would be morally wrong to charge the poor and middle class for large portions of the cost of a place of entertainment.

HB1198 says the tax hike would be temporary. But it does not prevent a city from thinking of one project after another.
It requires a local vote for the project and accompanying tax hike. But we know low- and middle-income people would not be able to mount the kind of advertising campaign that project enthusiasts could. And low-and middle-income people have a harder time getting information except from advertising and getting to the polls.
It says cities could have a refund program, if they choose. We know about refund programs! No matter how generous and simple, refund programs miss people, often lots of them. If the idea is that basic necessities should not be taxed, then let’s not tax them in the first place.
Cities do not often admit it, but there are other ways to raise funds. In the case of the event center, the city could be asking for a higher allowable bed-board-booze tax (BBB). If not such a hurry to pay off the building (3-4 years), they could build an event center mostly with 2% more on BBB, supplemented with some private fundraising (donations, naming rights, ticket fees, luxury suite fees, etc).

Here is nifty Legi Contact info (from the Sioux Falls Chamber):
- – - – - – - – - – - – - – - – - – - – - – - -
On Thursday, Feb. 11, the House Local Government Committee will take up the Local Option Sales and Use Tax increase - HB 1198. Here is your chance to be part of the process. We have included a list of those who are on the committee. It is usually most effective to contact your local representative or senator; however, if you personally know others on the committee your contact to them can be very powerful.

Here is a listing of all those who are on this particular committee (just click on their names to send them an email):
Mark Kirkeby (Chair, represents Pennington County)
Val Rausch (Vice Chair, represents Brookings, Deuel, Grant and Moody counties)

**Sioux Falls area legislators**:
•  Jim Bolin lives in Canton and represents Lincoln and Union counties. His phone number is 987-2630.
•  Blake Curd lives in Sioux Falls and represents Lincoln and Minnehaha counties. His phone number is 321-0121 while in Pierre and 339-8918 in Sioux Falls.
•  Dan Lederman lives in Dakota Dunes and represents Lincoln and Union counties. His phone number is 712-251-1992.
•  Darrell Solberg lives in Sioux Falls and represents Lincoln and Minnehaha counties. His phone number is 361-2475.
•  Martha Vanderlinde lives in Sioux Falls and represents Minnehaha County. Her phone number is 201-7427.

Other legislators on the committee include (we’ve linked their names to their email addresses):
•  Justin Cronin lives in Gettysburg and represents seven area counties.
•  Dennis Feickert represents Brown and McPherson counties
•  Justin Frerichs represents Day, Marshall and Roberts counties
•  Betty Olson represents Butte, Corson, Harding, Meade and Perkins counties
•  Fred Romkema represents Lawrence County
•  Tim Rounds represents Hughes, Stanley and Sully counties

I’m still wondering where legislators think the money is going to come from to repair roads? Obamacare? Gotta love the excuses to;

Opponents said even a modest increase in the tax on gasoline and diesel fuel could cause people to buy fuel across the border in other states, particularly Wyoming, which has a much lower tax.

Yeah, I’m going to drive to Wyoming to fill up my car . . .

Sen. Gordon Howie, R-Rapid City, who is running for governor, said the bill should be defeated because South Dakotans do not want to be hit with a large tax increase. He said a better option would be to reduce government red tape to encourage more industrial development, which in turn would lead to increased state sales tax receipts.

Huh. Gordon, please stop talking and go teabag someone on your own time, stop wasting South Dakotan’s time with your ridiculous comments. While I think industrial development is a good idea, what does it have to do with roads and sales tax receipts? We shouldn’t be fixing roads from taxing food and utilities. When are you dillweeds gonna figure that out?

The Legislature has always resisted using general tax revenue for roads, and has instead used fuel taxes, vehicle excise taxes and registration fees to pay for highways. The South Dakota Constitution requires that gas tax revenue be used for roads and bridges.

Gee, what a concept!

I still laugh in amazement that this dill weed is running for governor;

By 2012, the state would gain an extra $54 million a year in revenue from the gas tax and excise tax on vehicle sales, while local governments would get an additional $30 million a year from the boost in registration fees.

The main opposition to the measure at Wednesday’s hearing came from Sen. Gordon Howie, R-Rapid City, a committee member who is running for governor.

“This $84 million will come straight out of the pockets of the taxpayers of this state,” Howie said.

Get outta here! You mean taxpayers pay taxes! Where did you hear such nonsense Gordo? At a tea party?

Sen. Mike Vehle, chairman of the committee, said the measure is needed to prevent South Dakota’s roads from deteriorating. He said the taxes and fees are really user fees imposed on those who use the roads.

“If you don’t want to use the roads, you don’t have to pay the fee,” Vehle said.

Exactly. While I think this is a horrible time to raise taxes I do think the gas tax, excise tax and registration fee increases are the best ways to pay for roads. Tax the people who are using the roads. Maybe Howie has a better idea? Maybe we should increase taxes on food, cut education spending in half and use that money on roads?

Gotta love Lucas and his COMPLETE HORSE PUCKY TALKING POINTS;

The talk from Democrats about wanting to instill “responsible spending” in Pierre has not gone over well with many Republicans. Lucas Lentsch, the GOP’s executive director, has denounced it as a “phony” plan indistinguishable from Heidepriem’s stump speech for governor.

“It’s one thing to talk about being fiscally conservative and it’s another to have a track record of that,” Lentsch said.

Republicans in the Legislature are doing the “heavy lifting” right now by looking for cuts while Democrats, the minority party, are “throwing stones in the road.”

Lentsch said Democrats last year complained the state wasn’t spending enough. Before the budget crash last year, Democrats wanted to divert more interest earnings from state trust funds to K-12 education.

Lucas, your statement makes you look like a horse’s ass! Seriously, dude! Who has ran this state and Pierre for the last 8 years? Your party! You realize you are a Republican, right? The only track record you have had is running this state into the ground. Come to grips amigo! Keep blaming Obama for your problems, eventually people will wake up, scoop up your crap and throw it back in your face.

Drive me, no new tax fees

I think our legislators are on the right track when it comes to road funding, but I would do some tweaking on the proposal;

The bill would boost money for maintenance and construction projects on state and county roads throughout South Dakota. The state’s tax on gasoline would jump 5 cents a gallon by May 1 and another 5 cents in 2012. Vehicle registration fees also would rise over two years, as would the state’s excise tax on new vehicles.

I agree vehicle registration fees should go up, but I also think the whole system needs an overhaul. You should pay a higher rate based on the weight of your vehicle and it’s fuel efficency. If you drive a light vehicle that gets over 35 miles a gallon, your fees should be reduced. We should be rewarding people who choose to have less impact on our roads. I also think the excise tax on vehicles should be the same as food. I have never understood why we pay a higher rate on goods that are essential to life then we do on automobiles. The whole argument from the car dealership lobby will be that it will hurt sales. Bologna. You can finance your excise tax into your loan and spread that expense out over the life of your loan. It won’t hurt sales. While I think a gas tax is a fair way to fund roads, I would probably hold off on that for at least a year and see if the other two proposals work first. I like gas taxes because, like I mentioned with my registration fee idea, it has less impact on people who choose to drive more fuel efficient vehicles.

I found these fun facts from the Heidi Scott campaign interesting;

“Today the Governor announced a record state budget deficit.  He blamed the national economic recession of the past year.  Yet, this budget marks the seventh of eight budgets he has submitted that spent more than the state collects in revenues.  In these eight years, state government has grown at a staggering pace, spending is out of control and governmental accountability is at an all time low,” Heidepriem said.

“Yet to solve this out of control problem, the Governor proposes to balance the budget by raiding relief funds, wasting stimulus dollars, raising taxes and balancing the budget on the backs of our children by making cuts in education. Where is the responsibility?  Where is the accountability?  This is wrong and South Dakotans should be outraged,” Heidepriem said.

“The Governor should do the responsible thing and slash his massive budgets of all fat, reign in all spending, cut unneeded state employees, cap spending, and open all of our state’s 1800 contracts to open bidding. To paper over these structural problems by first using relief funds or one time money is irresponsible and does nothing to solve the culture of bloat and waste in Pierre. South Dakota deserves better and South Dakotans should demand better,” Heidepriem said.

Yet we continue to elect these ‘supposed’ Conservative Republicans. They ARE NOT fiscal conservatives. They ARE NOT moral or ethical conservatives. They really are not conservatives in the true sense of the word. They are big government, greedy, Republicans, a trend that started with Reagan and perfected by GW Dush.

And Bob Mercer sums up Rounds’ administration (H/T -DWC)

Rounds is term-limited and the 2010 legislative session will be his eighth and presumably last, a situation that will only further embolden legislators and further undermine his relevancy.

Seven years of little innovation, no new efficiencies or savings of any significance, an emphasis on protecting his hometown’s economy, and showing minimal backbone on spending — he complained but still signed the budgets into law when the Legislature spent more than legally required on public schools, for example– are coming home to roost.

Were broke? Get outta here!

Revenue to the state treasury is falling and more people are enrolling in Medicaid, triggering significant demands on the entitlement program. Although the state has federal stimulus money to shore up finances in the 2011 budget, which starts July 1, 2010, the federal money won’t be enough to backfill the budget unless there is a major turnaround in the economy.

Well, that’s what you get when you don’t attract young workers to our state to help pay for the program, that, and we think taxing food is a good way to fund government.

The five major revenue sources to the state are down in the first three months of the current fiscal year that started July 1. Combined, they represent 90 percent of the state’s general fund revenues. The most important – sales tax – was down $33 million or 5.2 percent.

It’s time the state implemented an income tax, got rid of retail taxes and reduced property taxes. We’ll see what solutions are offered;

Bernie Hunhoff, the Democratic minority leader in the House, said his party will have ideas about what to do. ”Democrats are here to work with the governor and with the Republicans to get South Dakota out of this,” Hunhoff said. “It’s not one party’s problem; it’s South Dakota’s problem.” The slowdown in state revenues reflects the pain felt on family farms and main street, Hunhoff said. The situation could call for across-the-board cuts. “Unless we really see an immediate rebound in revenues, the hole is getting so deep that everybody is going to have to share in the pain and sacrifice,” he said.

That’s why an income tax makes sense, it makes everyone share that sacrifice fairly. Abdallah wants to touch the sacred cow, better be careful, or King Rounds will cut your fingers off.

Republican Sen. Gene Abdallah said he wants a thorough accounting of how much money is in each of the state’s reserve funds, including some of the more obscure funds, before he’ll be ready to consider more cuts.

I agree it is time to dip into the reserves, that’s what they are there for, a rainy day.

This looks like and interesting program tonight

Join us for our Oct. 22nd South Dakota Focus as we zero in on stimulus dollars. So Far South Dakota has spent $219-million dollars out of the $632-million given to the state. We will talk about where the money was spent and what is left. Also to be discussed  the state of the nations economic crisis and if  the recession is weakening. You can call in with your own questions and comments. It’s a stimulus update program on our Oct. 22nd South Dakota Focus at 8:00pm CT / 7pm Mt. You can also watch online at http://www.facebook.com/l/beb28;www.sdpb.org . Email us your questions to sdfocus@sdpb.org or call in live during the broadcast 1.http://www.facebook.com/l/beb28;877.825.5788

On the program:

Commissioner Jason Dilges – SD Bureau of Finance and Management
Sen. Jean Hunhoff ( R ) Yankton
Rep. Larry Tidemann ( R ) Brookings
Via phone: Dave Munson – Mayor of Sioux Falls
Via Phone: Jerry Krambeck – Mayor of Spearfish

For more information:
Bureau of Finance and Management
http://www.facebook.com/l/beb28;www.state.sd.us/bfm/

Jason Dilges, Commissioner
Bureau of Finance and Management
500 East Capital Avenue, Pierre, SD 57501
Phone: (605)773-3411 Fax: (605) 773-4711
bfminfo@state.sd.us

South Dakota Recovery Website
http://www.facebook.com/l/beb28;recovery.sd.gov/

From StormLand TV News:

A South Dakota legislative committee has recommended a substantial boost in taxes used to build and maintain state and local roads, but some lawmakers say the full Legislature will never pass such a large tax increase.

The panel voted 11-6 to pass a bill that would raise road taxes in two stages, with half the increase imposed next year and the other half in 2012.

The state gas tax would rise from 22 cents to 32 cents a gallon and the excise tax on vehicle sales would increase from 3 percent to 4 percent by 2012 to give the state an extra $75 million a year.

Annual vehicle registration fees would rise to give counties, cities and townships an additional $31 million.

While new taxes are never good, I still think that a gas tax and vehicle registration fees are the fairest way to pay for roads. Of course, I’m sure some legislators would prefer to pay for new roads by taxing food more.