South Dakota Governor Dennis Daugaard addressed lawmakers on Tuesday, December 4 at the state capital proposing a $1.7 billion general fund budget for the coming year. This is the final budget proposal for the retiring Governor.

Daugaard's proposal for the 2020 budget year that starts July 1, 2019 envisions roughly $53 million in spending hikes, including 2.3 percent increases for education, Medicaid providers and state workers.

Daugaard is proposing emergency expenses for the current state budget year including $7.4 million to expand the Jameson Annex at the South Dakota State Penitentiary, roughly $3.9 million for a National Guard Readiness Center and $2.3 million for a litigation fund.

The budget lays the groundwork for GOP Gov.-elect Kristi Noem who will formulate her own proposal to be debated in the upcoming legislative session.

During his speech Daugaard looked back on difficult times during his two terms. Missouri River flooding and massive state spending cuts to eliminate a budget deficit early in his first term. The Governor also referred to some victories including raising the state's teacher pay from the last in the nation, winning a victory at the U.S. Supreme Court allowing states to force online shoppers to pay sales tax and prioritizing the maintenance and repair of highways, bridges and state buildings.

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