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Since 1978, South Dakota State Budget Grows Faster than Federal Budget

The last couple pages of the Legislative Research Council's 2014 Statistical Comparison offer a summary of the funds appropriated by the South Dakota Legislature every year since statehood. The 1890 Legislature appropriated $438,708 to the general fund. In the coming fiscal year, our general fund has $1.389 billion dollars, 3,166 times the amount of money our founders gave Governor Mellette to spend.

Of course, we have much more than $1.389 billion in government money coursing through our state veins. The general fund makes up just under a third of the total FY2015 state budget of $4.259 billion. 27.8% of that spending comes from other fees and licenses, while 39.6% comes from Uncle Sam.

The 2014 Statistical Comparison starts breaking down the budget by general, other, and federal funds in 1978. South Dakota's total budget that year was $457 million. In FY2015, South Dakota government will spend 9.3 times that amount.

Now let's compare that growth to what's happened in Washington. Crunching numbers from USGovernmentSpending.com, I find that federal spending in FY1978 was $458 billion. Federal spending in FY2015 is projected to be $3.9 trillion. Over the period that South Dakota's government spending has increased by a factor of 9.3, federal spending has increased by a factor of 8.5.

Or let's compare annual growth. Since 1978, South Dakota's total state budget has grown at an average of 6.3% each year. Over the same period, the federal budget grew at an annual rate of 6.0%. South Dakota's budget grew faster than the federal budget in 25 of those years; federal budget growth outpaced our state budget growth in just 13 of those years.

Governor Dennis Daugaard and his predecessor-cum-Senate candidate Mike Rounds like to talk about how Washington ought to apply South Dakota common sense to its budget. But if South Dakota had matched federal spending patterns, our state budget would be 8.8% less than it is now.

8 Comments

  1. PNR 2014.06.10

    Using 1980 numbers - easier to find population stats in census year.

    US federal spending 1980=$2,609 per capita (non-adjusted);
    Adjusting for inflation per CPI, in 2014 dollars=$7,506
    In 2014, per capita spending is $12,256, an increase of 69%

    South Dakota state spending (General Fund, etc.) 1980=$827 per capita
    Adjusting for inflation per CPI to 2014 dollars =$2,379
    In 2014, per capita SD spending is $5,141, an increase of 116%

    If SD per capita spending had increased at the same rate as federal spending, it would be $4,020 - about 22% less than $5,141.

    Just thought it would be interesting to see those numbers adjusted for inflation and per capita to take into account population changes.

  2. Wayne Pauli 2014.06.10

    Now why would you want to confuse a good Republican South Dakota values story with facts? If we keep our populace under-educated they will believe us and vote dead Red...

  3. Roger Cornelius 2014.06.10

    There is one absolute with this thread, over the past 40 years Republicans are responsible the growth and spending in state government
    Kind of makes it hard to believe the state GOP believes in small government.

  4. grudznick 2014.06.10

    Yet isn't the real difference that the federal government has a massive debt and the state government does not have a massive debt?

    If my French math is correct, I would gauge that measuring my income and expenses year over year has some measure but what's really important is making sure my income in any given year covers that year's expenses.

  5. larry kurtz 2014.06.10

    you mean a debt made huge under an incompetent executive appointed to the presidency by his brother in 2001 who subsequently created an illegal war because he could, grud?

  6. larry kurtz 2014.06.10

    grud: your appearances here coincide all too often with PP putting up another feces treatise: what do you make of that?

  7. Roger Cornelius 2014.06.10

    One of these days the tea party types will hopefully figure out that kitchen table economics are drastically different to government budgets and economics, there is absolutely no comparison.
    The only reason South Dakota does not have massive debt is because Blue State Democrats carry the states finances.

  8. grudznick 2014.06.10

    The universe never ceases to amaze me, Mr. kurtz.

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