State Budgets: South Dakota Draws Down Reserves, Cuts Spending Increase December 27, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman Gov. Mike Rounds (R) plans to draw down $26 million in reserve funds to balance this year’s budget and $32 million to balance the $3.7 billion 2010 budget, leaving just $4.5 million in the reserve fund. Pay raises will be cut to 1.5% (as opposed to 3%), and unnecessary travel curtailed (including Rounds’s own trip to President Obama’s inauguration). The budget also includes a $6.3 million property tax increase, increased Medicaid spending, and the expectation that South Dakota will be hurt less by the recession than other states. More on South Dakota here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics South Dakota Tags State Tax and Spending Policy