Gov. Mike Rounds (R) said Jan. 12 he would balance the state budget with spending cuts but not tax increases. He did, however, call for eliminating certain sales tax exemptions and raising fees.
Rounds said the state Department of Revenue would propose removing a special sales tax exemption, which would provide $3 million a year in revenue and as much as $1.6 million in sales tax revenues to cities. The state does not have an income tax.
Rounds' hour-long speech to the Republican-controlled Legislature was dominated by the state budget, which has a $71 million shortfall. He did not propose any new programs, or offer specifics on what he would trim in the budget.
“Our two major challenges this session are to not spend more than what we have, and to survive and prosper no matter how the national economy impacts us over the next 18 months,” Rounds said.
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