State Funding

In Beck’s imaginary world citizens support tax increases

[youtube]http://www.youtube.com/watch?v=W__qCFWi1KA[/youtube]

I highly suggest that instead of writing columns anymore for the Argus Endorser, Beck just build a bed under his desk and sleep the day away, because his opinion is incredibly off base;

But that openness, it seemed, didn’t extend to any future effort to give cities and counties the authority to ask voters for approval to levy a temporary 1-cent sales tax to pay for certain public works projects – something we’d been trying to pin him down on since the campaign last year.

You might recall such a bill, with the backing of the municipal league and most cities and counties, experienced a brief life in the Legislature last year before being tarred, feathered and run out of Pierre on a rail.

And for good reason, a majority of citizens don’t even want taxpayer money wasted on voting on it, let alone passing it. What world does Beck live in? Why is he under the impression that this would ever pass voters? It would be freaking doomed from the beginning, and the committee overseeing it killed it instead of allowing it to fail in front of voters.

It amazes me that a guy that has a great sense of humor, incredible writing skills and extensive knowledge of open government, sure is naive.

New governor Doogard seems to be short on ideas

“Let’s give away the farm to businesses, that will help economic growth.”

While I have railed on the SD GOP in the past for their ‘Pack of Wolves’ mentality and only working hard on killing anything ‘Democratic’ I have often wondered why they just don’t use that energy to come up with some good ideas for the state, instead they either have really mediocre ideas, or ideas that have been tried already and don’t really have results. Take Doogard’s answer to saving our state economically;

Just three days after taking office, Daugaard proposed ways to expand low-interest state loans to businesses, encourage aviation companies to relocate in South Dakota and promote ethanol use by motorists.

Once again, the SD GOP is proposing the same old crap that hasn’t really done much for the regular Joe. SD already has one of the most friendliest PRO-Business climates in the country. And what has it given us? Some of the lowest wages in the country. I suggest more worker rights. Better paid employees spend more money, which in turn pay more in retail taxes. This isn’t rocket science folks.

I have no freaking idea what bringing aviation companies will do for SD? Maybe someone can fill me in on that one. As for ethanol, that ship has sailed, while I am all for developing cellulosic ethanol, I think it is time to stop subsidizing an industry that is taking food off of our tables. I would suggest subsidizing wind energy to be a much better investment.

Rounds proposed budget isn’t much better;

Former Gov. Mike Rounds, who left office Saturday, proposed $65 million in cuts, including 5 percent reductions in state aid to school districts and reimbursements to doctors and others who treat low-income people in the Medicaid program.

Instead of cutting his expanded FTE’s (which haven’t done us a damn bit of good) and no bid contracts, he goes after education and healthcare. Why? Because dumb sick people are good for economic growth. Who knew? Not us dumb sick people.

HB 1255 Passes Committee (ending the food tax)

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.)

City Sales tax increase to go to a committee vote on Thursday

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