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South Dakota Can Spend $1.5M to get $214M in Medicaid; Daugaard Unwilling

Governor Dennis Daugaard's big proposal in this week's budget address is, basically, to spend money to save money. Burning up $90 million in one-time expenses frees up $25 million in ongoing money.

So why not spend $1.5 million to bring in $214 million? According to this January 2013 study from the South Dakota Budget and Policy Project, that's all we'd pay to expand Medicaid to 49,000 South Dakotans for the first three years of Uncle Sam's offer under the Affordable Care Act. Add three years of that cost together, and you still get less money than the $5 million selectively stingy Governor Daugaard was willing to grant in one fell swoop to French cheese maker Bel Brands to build a factory in Brookings and create 400 jobs.

Flyoverwire highlights that misprioritization of corporate welfare over Medicaid investment, then notes that Daugaard is letting politics prevent him from boosting the economy and helping low-income South Dakotans:

The new Commonwealth Study that came out today shows that any discussion of the ‘costs’ of expanding Medicaid – even if they truly are pennies on the dollar – needs to be coupled with the cost of uncompensated care from people who lack health insurance. That’s what Dennis Daugaard either doesn’t understand or willfully neglects to mention. So now, he sticks to this talking point: “Gee, hundreds of millions of dollars from the federal government pumped into our state and our economy would be great … if only we could afford the pittance we have to pay in administrative costs.” He has $125 million of found money, money that once belonged to South Dakotans.

...Daugaard can explain away his reasoning, but it becomes clearer and clearer: The governor is a political chicken. He doesn’t want to be accused of doing anything to help the implementation (and projected success of) Obamacare, at least until after the 2014 elections. It’s his citizens and his state who will suffer ["Daugaard's $125 Million Stash Is Already Spoken For," Flyoverwire, 2013.12.06].

We have the money for creative budget games. We have the money to raise state worker salaries (which I begrudge them not for their fine work!). We have the money to expand Medicaid and do lots of good for lots of South Dakotans. But Governor Daugaard lacks the will to do the right thing. Joe Lowe, please tell me you're going to hammer the Governor on this issue.

6 Comments

  1. Rick 2013.12.07

    "At this festive season of the year, Mr Scrooge, ... it is more than usually desirable that we should make some slight provision for the Poor and destitute, who suffer greatly at the present time. Many thousands are in want of common necessaries; hundreds of thousands are in want of common comforts, sir."
    "Are there no prisons?"
    "Plenty of prisons..."
    "And the Union workhouses." demanded Scrooge. "Are they still in operation?"
    "Both very busy, sir..."
    "Those who are badly off must go there."
    "Many can't go there; and many would rather die."
    "If they would rather die," said Scrooge, "they had better do it, and decrease the surplus population."

  2. Rick 2013.12.07

    Attribute "A Christmas Carol" by Charles Dickens, which appears to offer guiding principles behind the Rounds/Daugaard agenda for the last decade.

  3. interested party 2013.12.07

    curious that neither mercer nor montgomery caught this.

  4. Douglas Wiken 2013.12.07

    It is old news, that is probably why they are not reporting it. Daugaard is supporting idiotic policies harmful to South Dakota because of his imaginary problems with "Obamacare".

    South Dakota needs an impeachment process for governors who act in such irrelevant self-serving ways that they harm the South Dakota economy and the lives and livelihood of tens of thousands of South Dakotans. Legislators should be demanding a special session immediately to get this funding to South Dakota.

    Compare the investment returns on this with the boondoggle "economic" nonsense of the GOP patronage machine.

  5. Deb Geelsdottir 2013.12.07

    Rick, that was perfectly apt. Thank you.

  6. Jana 2013.12.08

    This is just another game for Tony and Denny that they play at our expense.

    As Mr. Mercer points out they are also playing a game in filling a spot on the GFP commission. http://my605.com/pierrereview/?p=9787

    13 months and nothing? Seriously?

    Another reason that they continue to lose the trust of the public.

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