The Center on Budget and Policy Priorities finds state budget cuts doing unnecessary harm to education, health care, and the economy. (I will be trying to boost my personal economy by seeking trademark on the term "Daugaard recession.") Out of 44 states with data available, 37 are spending less in Fiscal Year 2012 than they did in FY2008.
Plain economics tells you that if government is spending less, the private sector had better be spending more to make up the difference in economic activity. Otherwise, you've got a recession. Just curious: has anyone seen all those budget cuts from Governor Dennis Daugaard causing a resurgence of private investment here in South Dakota? Or are all those "savings" being eaten up as individuals pay higher fees for services like background checks and university tuition?
The CBBP report says South Dakota students can expect to pay $490 more in tuition this year. That's $490 they won't be spending on beer, futons, and other Main Street items.
South Dakota is also keeping more money out of the economy by locking it up in reserves:
CBBP finds South Dakota tied with Nebraska for having the highest reserves as a proportion of last year's budget. It will be interesting to see how much that figure changes after we pay bills from the flooding on various golf courses and gated communities along the Missouri River this year....
Governor Daugaard does like to point out that South Dakota's budget woes aren't as bad as they are in places like bad and nasty California. Funny that the governor doesn't remind us of the budget woes in Texas and Louisiana, where their fiscal shortfalls were much larger percentages of their budgets than South Dakota's. I guess Denny's GOP pals Rick Perry and Bobby Jindal must not be as persistent, frugal, and self-reliant as we are.
Update 18:12 CDT: A thoughtful reader quietly advises that CBPP is operated and funded by Voices for Children, which advocates spending more on social programs. They're probably socialists. Paul Krugman, also an advocate of strong social program spending but not a regular Madville Times reader yet, calls the Center's work "absolutely impeccable." Vice President Joe Biden calls CBPP "a big f-ing deal!" No, actually, our man Joe just says CBPP is "the go-to resource for consistently reliable analysis on matters of budgets and fiscal policy at every level of government."