- Associated Press - Tuesday, December 6, 2016

PIERRE, S.D. (AP) - The Latest on Gov. Dennis Daugaard’s budget proposal (all times local):

4 p.m.

The South Dakota Senate Democratic leader says he would like to see more spending in the state budget on education, Medicaid providers and state workers.

Republican Gov. Dennis Daugaard outlined on Tuesday his budget proposal to the Legislature. The plan calls for roughly $20 million in general state spending hikes next budget year, including 1 percent increases in those areas.

Senate Minority Leader Billie Sutton says he’d like to see larger hikes and more emphasis on economic development.

Democratic legislative leaders criticized the governor for his decision not to include in his budget plan millions of dollars of funding for a public campaign finance system established under a government ethics overhaul approved by voters last month.

Sutton says not funding the provision just because the governor doesn’t like it is “a little bit dangerous.”

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2:10 p.m.

Gov. Dennis Daugaard has offered a budget proposal constrained by lower-than-expected tax collections, keeping spending increases modest for the upcoming budget year.

The Republican governor on Tuesday outlined a $1.62 billion general fund budget proposal in his annual address to the Legislature.

The plan includes roughly $20 million in general state spending hikes next budget year for education, Medicaid providers and state workers.

Daugaard didn’t include in his budget plan millions of dollars of funding for a public campaign finance system established under a government ethics overhaul approved by voters last month.

The governor says the roughly $5 million cost next budget year would eat up significant revenue growth for other areas. He says backers of the proposal ran a deceptive campaign.

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1 p.m.

Gov. Dennis Daugaard will offer a budget plan restrained by lower-than-expected tax collections, forcing officials to address a shortfall this year and tamp down spending increases for the next budget cycle.

The Republican governor on Tuesday will outline a $1.62 billion general fund budget proposal in his annual address to the Legislature.

The plan includes roughly $20 million in general state spending increases during the next budget year for education, Medicaid providers and state workers.

Revenues for the current fiscal year, which began July 1, aren’t meeting lawmakers’ projections. But with current-year spending coming in below projections, plus some new money, Daugaard is proposing roughly $22.7 million in one-time spending for the current year.

The proposal includes roughly $2.4 million for budget reserves and $5 million for a new animal disease laboratory, among other expenses.

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8:45 a.m.

South Dakota Gov. Dennis Daugaard is set to present his budget proposal to the state Legislature.

The governor’s budget address is Tuesday at the Capitol. Daugaard has said lower-than-anticipated tax collections will only allow for modest spending increases during the 2017 legislative session.

State revenues for the first four months of the current fiscal year, which began July 1, were down roughly $20 million from lawmakers’ projections. That’s about 3.6 percent below expectations.

Lawmakers will revise the current budget and shape the next one during the session that begins in January.

Daugaard has said that his plan for the upcoming budget cycle is “leaner” compared with some other years, but won’t require the spending cuts that the state faced early in his first term.


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