1. Candidate Budget Basics Let 's talk budget process!

2. SD Budget & Policy Institute Mission - to promote responsible and equitable fiscal policy through research and education Nonpartisan, not-for-profit 501(c)3 [not a state government function] Funding from Northwest Area Foundation and donations from people and businesses in South Dakota Board of Directors Robert Burns, PresidentDeb Fisher-ClemensKay Jorgenson Dave Volk, Vice PresidentEileen BriggsPaul Dennert Gene Lebrun, Sec/TreasurerRob OliverJim Fry Rich Garry, Past PresidentMary Bibby

3. Are you fluent in budget basics? You might say the state budget is the ultimate policy document…

4. How SD BPI talks about fiscal policy

5. …. a guide to understanding the components of the state budget, how it is created, and the priorities and choices it reflects. download free from sdBPI.org

6. In a balanced budget: expenses = revenues

7. Increase revenue? decrease expenditures? combination of both? Balancing the Budget

8. Page 6, SD Budget Primer A budget is born

9. Page 6, SD Budget Primer

10. part-time legislature short Legislative session General bill amendments introduced last day or two of session Revenue estimate delayed until March Challenges in our budget process

11. Governor’s budget address and proposed budget are available at bfm.sd.govbfm.sd.gov Budget in Brief includes a tax expenditure report LRC briefings on agency budget requests and other documentation available at legis.sd.us legis.sd.us Revenue estimates for upcoming year Fiscal notes on legislation Fiscal tools that inform SD budget decisions

12. BFM Website State Budget http://bfm.sd.gov/budget/

13. BFM Website Governor’s budget and supporting documents http://bfm.sd.gov/budget/rec15/index.htm

14. LRC Website legis.sd.gov

15. LRC Website budget documents http://legis.sd.gov/Budget/Reference_Documents/default.aspxlegis.sd.gov/Budget/Reference_Documents/default.aspx

16. LRC Website Hearing Schedule and Materials http://legis.sd.gov/Budget/Budget_Hearing_Schedule_and _Materials/default.aspx

17. LRC Website Materials from Dept. of Education hearing http://legisonenote.sd.gov/Web/default.aspx?id=1196

18. LRC Website Revenue Estimate http://legisonenote.sd.gov/Web/default.aspx?id=1185

19. LRC Website Amendment Packet http://legisonenote.sd.gov/Web/default.aspx?id=1226

20. Fiscal tools used by other states that could help inform South Dakota budget decisions Current services budget Revenue review Tax incidence analysis

21. Current services budget

22. Revenue review

23. Projecting structural deficits and surpluses

24. Tax incidence analysis

25. Increase revenue? decrease expenditures? combination of both? Balancing the Budget

26. Revenue What are the main state and local revenue sources? http://dor.sd.gov/Publications/Annual_Reports/PDFs/2013%20Annual%20Report%20final%2001212014.pdf

27. Revenue Who do the $ come from? South Dakota - a low tax state not a low income state http://bea.gov/regional/bearfacts/action.cfm?geoType=3&fips=46000&areatype=46000

28. Taxes as share of income Source: http://www.itep.org/pdf/sd.pdf

29. TAXES The fundamental purpose of taxation is to raise the money needed to fund public services

30. Expenditures Where does the money go?

31. SPENDING: 1. General Funds 2. Federal Funds 3. Other Funds

32. General Fund expenditures

35. Will there be an increase or decrease in provider reimbursements in the upcoming fiscal year?

36. FMAP fluctuates based on state per capita income (wealthier states get less federal assistance!) 50% Floor

37. EXAMPLE OF SOCIAL SERVICES BUDGET RECOMMENDATION Governor’s FY15 Budget

38. K-12 Education Funding Concepts to understand: 1. School Funding Formula 2. Per Student Allocation (PSA)

39. How SD funds k-12 education Source of funds to support SD k-12 education Federal State Local

40. Total per student funding & funding sources for SD school districts FY11 (in thousands)

41. School Funding Formula page 19 of Budget Primer

42. Cumulative per student allocations compared to CPI-W (inflation)

43. Thank-you for your willingness to serve your fellow citizens as a state legislator