• PIERRE, S.D. (AP) -- Gov. Dennis Daugaard on Tuesday proposed a $4.1 billion state budget plan to the Legislature that would include modest spending increases on schools, health care and public worker salaries but wouldn't make up for last year's deep spending cuts.
• The Republican governor's plan calls for roughly 3 percent increases in spending on schools and universities, as well as hospitals, nursing homes and other facilities that provide medical services to the poor. The increases would more or less offset inflation, and education and health care officials have repeatedly said such hikes wouldn't come close to restoring 2011 funding cuts made to close a $127 million budget shortfall made worse by the most recent recession.
• Daugaard said the final budget, which the GOP-controlled Legislature must pass before adjourning in March, has to be based on conservative revenue estimates and must ensure ongoing revenue is sufficient to cover ongoing spending. Any one-time money should only be used to pay for one-time expenses, he said.
• The governor warned that problems could come from the lingering drought, the growing federal debt and uncertainty about what President Barack Obama and Congress will do to prevent automatic federal tax increases and spending cuts.
• "Because of these uncertainties, I think we need to be conservative about committing to future new ongoing expense," Daugaard told lawmakers.
• Daugaard's budget would authorize South Dakota to spend $4.1 billion in state, federal and other funds in the fiscal year that begins July 1, down slightly from this year because of the loss of some federal aid and decreased spending of state money designated for specific projects. The portion from state general tax funds would exceed $1.3 billion, which would represent a $95 million increase in ongoing spending.
• It would leave $26.5 million uncommitted over the next two years, and most could go toward one-time expenditures such as those used in this year's budget to help offset some of the 2011 cuts. Next year's plan only includes the inflationary increases, so health care and education interests are expected to lobby for additional money.
• Daugaard said he and lawmakers would decide together how to spend the uncommitted money. Funds available on a one-time basis should be used to eliminate state liabilities, build or improve long-term assets or create endowments that can

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