This post started it http://www.ultimatenurse.com/forum/f...care-tx-94418/ , and this post follows it up from South Dakota: http://finance.yahoo.com/news/Educat....html?x=0&.v=1

The budget cuts Gov. Dennis Daugaard proposed Wednesday didn't surprise officials representing schools, nursing homes and other groups that rely on state funding. Parts of his proposal had been rumored for weeks.

Still, officials said they were alarmed by Daugaard's proposal, which reduces spending across the board by 10 percent or more, and they predicted layoffs and a decline in state services if the cuts are approved.

"This is devastating, but we need to start talking about it," said Wayne Lueders, the executive director of the Associated School Boards of South Dakota.

The state is among the many nationwide facing a budget gap, and Daugaard proposed the cuts to close an estimated $127 million deficit in the budget that begins July 1. He has vowed not to approve any tax increases and says the state's reserves shouldn't be used for operating expenses.

Under Daugaard's plan, which he outlined in a speech Wednesday, school districts would lose about $480 per student, from $4,804 to $4,324, or a total of $59.5 million overall, according to figures the ASBSD prepared before the speech.

"This is going to move us back six years," Lueders said. "It's going to be devastating to some school districts."

Charlie Flowers, of the South Dakota Coalition of Schools, said he questioned Daugaard's refusal to use state reserves. "Are we willing to sacrifice the education of our K-12 children ... to save the state some money?" Flowers said.

Daugaard also proposed about $30 million in cuts to Medicaid providers, leading to warnings that nursing homes might begin to close and doctors would start opting out of the program.

"We've already cut flesh, we've cut into muscle, and now we're cutting into bone," said Mark Deak, executive director of the South Dakota Health Care Association, which represents more than 200 nursing homes and assisted living facilities. "Cuts of 10 percent are going to devastate the folks that care for our elderly and disabled citizens."

Another official said state aid cuts would drive up costs for many patients and providers.

"This is a de facto increase on people who pay private health insurance and people in nursing homes who are paying their own way," said David Hewett of the South Dakota Association of Healthcare Organizations. "I think we need to understand the cuts were unprecedented."

Corey Landeen, the executive director of the South Dakota State Employees Organization, said potential layoffs "are absolutely going to have an impact on the quality of services." Daugaard's plan cuts about 161 full-time jobs, including 63 positions that would be transferred to the federal government once it takes charge of the Homestake gold mine in the Black Hills.

Legislative leaders stressed the governor's proposal was a starting point, but said all state departments would likely see cuts in a final budget. Senate Republican Leader Russell Olson of Wentworth said education, healthcare and the corrections department, which was proposed to lose about $7.2 million, "have to bear the load with everyone else."

Senate Democratic Leader Jason Frerichs of Wilmot said Democrats believe the state should use a portion of its reserves to support next year's budget, which would eliminate the need to cut state aid to schools and reimbursements to Medicaid providers.

"It's certainly a rainy day, now more than ever," Frerichs said.