• PIERRE, S.D. (AP) -- Gov. Dennis Daugaard on Tuesday proposed a $4.3 billion state budget that would use a windfall in unclaimed property payments to give bigger-than-expected spending increases for schools, health care for poor people and pay raises for state employees.
• Daugaard said lackluster tax receipts a few months ago indicated it would be difficult to fund increases of 1.6 percent, the minimum bump for inflation that state law requires for school aid. But he told state lawmakers Tuesday that an unexpected $70 million in unclaimed property receipts -- money the state gets from bank accounts and other property in which the owners cannot be found -- will help allow 3 percent increases in school aid, key programs and payments to health care providers in the Medicaid program.
• "Things looked pretty bleak in September, but today things look better," Daugaard said.
• The Republican governor also proposed a 3 percent raise for state employees and a 3 percent hike in spending on South Dakota's four technical institutes.
• In addition, he recommended spending nearly $4 million to freeze next year's tuition for resident students at South Dakota's six state-run universities at this year's rate. Another $915,000 would be used to hold down tuition at the state's four technical institutes.
• A key part of the governor's spending plan would use more than $100 million available on a one-time basis, including some reserves and some of the extra unclaimed property receipts, to pay off bonds and other obligations early. That would free up money on an ongoing basis to fund priorities next year.
• Daugaard's overall budget for the fiscal year starting July 1 would be nearly 3 percent smaller than this year, down by about $124 million. Spending would include nearly $1.4 billion from general state taxes, about $1.7 billion from federal funds and nearly $1.2 billion from other state funds.
• The Legislature will determine the final budget in the session that opens Jan. 14.

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