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Governor candidates say ballooning budget needs cuts, not more taxes

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Four candidates for governor told members of the South Dakota Farm Bureau in Rapid City on Saturday that state government must impose deep spending cuts -- not more taxes -- to solve its multimillion-dollar budget woes.

Republican candidates Dave Knudson, Ken Knuppe and Scott Munsterman and Democratic candidate Scott Heidepriem said during a Farm Bureau candidate forum that the state must make fundamental changes to limit the size of government. They said that should include dramatic spending cuts to solve a looming budget shortfall that could hit $200 million for the next fiscal year.

The other two gubernatorial candidates, Republican Lt. Gov. Dennis Daugaard and Huron Democrat Ron Volesky, were invited to the forum but had scheduling conflicts.

In response to an audience question, Knuppe, Heidepriem and Munsterman pledged not to raise taxes if elected governor. Knudson, a Sioux Falls lawyer and Republican leader in the state Senate, wouldn’t take the pledge.

It would be either foolish or dishonest to take an absolute pledge against a tax increase when there’s no way to know what financial challenges or needs might develop over the course of a governor’s term, Knudson said. Gov. Mike Rounds was smart when he refused to sign a no-tax pledge during his 2002 campaign, he said.

Knudson said he supports a modest increase in the state gasoline tax and vehicle registration fees to help deal with increasingly serious road and highway needs. That could be especially useful to farmers who rely on “farm-to-market roads,” he said.

Knuppe, a Buffalo Gap rancher, and Munsterman, a chiropractor and former Brookings mayor, took the no-tax pledge without qualification. So did Heidepriem, a Sioux Falls lawyer and Senate Democratic leader, although he said after the forum he thought it was in reference to his first year as governor, not an indefinite pledge.

After further consideration, he made it absolute.

“No, I’m not going to sign any bill that raises taxes,” he said. “Although we wouldn’t be in this situation had the Legislature approved our plan to limit state government growth years ago.”

Heidepriem sponsored unsuccessful legislation to hold state government to the same annual spending limits that local governments face. That’s three percent or the inflation rate, whichever is less. In recent years, state government has grown by an average of 5.5 percent a year, which is the main reason for the deficits, he said.

Munsterman said saying “no” to more taxes would be easy for him after taking a leadership role in solving budget problems he inherited as mayor of Brookings.

 “I don’t mind saying ‘no,’ and that’s why I was very quick to say ‘no,’” he said.

Knuppe said farmers and ranchers cut expenses when times are hard, and state government should do the same.

“We need to say: ‘Look, you’ve got so much money. Deal with it,’ just like we have to do in our business,” he said.

Heidepriem, Knudson and Knuppe said they liked the idea of across-the-board cuts, where all agencies share the burden. Munsterman said that philosophy would penalize agencies and programs that are effective and cost-efficient as much as those that aren’t.

“At end of day, we want to have balanced budget. But to get there, to have an across-the-board cut doesn’t take much analysis,” he said. “And you could be hurting programs that have positive economic impacts on the state.”

Among other questions, an audience member asked the candidates if they thought the state Game, Fish & Parks Department had too much money and too many employees.

“Yes, quite a bit,” Knuppe said. “I think they need to be held accountable a little more.”

Heidepriem said he has tried in the past to get more legislative control over the GF&P budget and still supports such control. He said the balance of power needs to be “tipped in favor of property owners and away from the heavy hand of government.”

Knudson defended GF&P, however, pointing out that the agency was funded primarily on hunting, fishing and parks fees rather than general tax dollars.

“In general, Game, Fish & Parks does a good job,” Knudson said. “They’re conscientious individuals doing the best job they can.

Munsterman said he is speaking with farmers and ranchers to learn more about their concerns with GF&P.

Contact Kevin Woster at 394-8413 or kevin.woster@rapidcityjournal.com

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