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Democrats still calling for reserve funds

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SIOUX FALLS, S.D. (KELO AM) - Democratic leadership in Pierre continues calling for using reserves to balance the state budget.

Representative Spencer Hawley of Brookings says in the seven years he's served in the legislature, using reserve funds has never been on the table.  Hawley says the only thing that's on the table is adding to the reserves.

Hawley says lagging sales tax revenue and a sluggish economy are the results of a downturn in the agriculture sector.  He says if the lower revenue is just a glitch then the state should be willing to use a little bit of the reserves to get through.  

Hawley says any proposal for cutting funds for education should not be on the table.

Senator Billie Sutton says dipping into reserves would likely be used for one-time expenditures. Sutton says the state didn't plan on lower sales tax revenue. He says that's the kind of situation where you would tap into reserves.  He says money has gone into reserves every year for the last five.

Governor Daugaard is opposed to using money from the reserves to balance the budget.  He says using reserve funds would lower the state's bond rating.


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