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Republican Budget Cuts Hurt South Dakota Families

SIOUX FALLS, S.D. – The South Dakota Democratic Party released the following statement from Executive Director Sam Parkinson in response to House Republicans narrowly passing a budget bill this morning:

“This Republican budget – voted for last week by Senators Mike Rounds and John Thune, and voted for today by Rep. Kristi Noem – takes money out of the pockets of hardworking South Dakota families and gives it to the top 1 percent. It will make drastic cuts to vital programs like Medicare and Medicaid to give huge tax cuts to wealthy corporations and millionaire and billionaires. Even worse, these tax cuts aren’t paid for. The Republican budget will increase the budget deficit by at least $1.5 trillion, which will in turn be used by Republicans as an excuse to make even deeper cuts into programs that help South Dakota families.

“But while Republicans continue to fight to give more and more to the wealthy and special interests, Democrats will continue fighting to give all working families the economic security and opportunity they deserve.”

Here is a closer look at how the Republican budget will hurt South Dakota families:

MEDICARE:

  • The Republican budget calls for nearly $500 billion in cuts to Medicare.
  • In South Dakota, 156,127 people who rely on Medicare are at risk.
  • Medicare beneficiaries make up 18 percent of South Dakota’s total population, including:
    • Seniors: 87 percent of Medicare beneficiaries in South Dakota are seniors.
    • People with disabilities: 13 percent of Medicare beneficiaries in South Dakota have a disability.
    • Women: 58 percent of Medicare beneficiaries in South Dakota are women.
    • Rural communities: Nearly one in four Medicare beneficiaries nationwide live in rural areas.

MEDICAID:

  • The Republican budget calls for more than $1 trillion in cuts to Medicaid – an even deeper cut than Republicans proposed in their health care repeal bills.
  • In South Dakota 109,100 people who rely on Medicaid are at risk.
  • Medicaid beneficiaries make up 14 percent of South Dakota’s total population, including:
    • Adults: 1 in 12 nonelderly adults in South Dakota.
    • Children: 1 in 3 children in South Dakota.
    • Seniors: 1 in 2 nursing home residents in South Dakota.
    • People with disabilities: 2 in 5 people with disabilities in South Dakota.
    • Women: 65 percent of nonelderly Medicaid beneficiaries in South Dakota are women.
    • Rural communities: Medicaid covers one in four nonelderly rural residents nationwide.
    • Veterans: 4,000 veterans in South Dakota rely on Medicaid services.

NUTRITION & INCOME SECURITY PROGRAMS:

  • The Republican budget calls for deep cuts to programs like the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, and Social Security.
  • SNAP helps 96,000 South Dakota families and workers stay out of poverty and keep healthy food on the table.
    • Almost 75 percent of SNAP participants in South Dakota are in families with children.
    • More than 48 percent of SNAP participants in South Dakota are in working families.
    • Almost 27 percent of SNAP participants in South Dakota are in families with members who are seniors or have a disability.
  • In 2016, SNAP benefits added $145 million to South Dakota’s economy, because families spend their SNAP benefits at local grocery stores and other retailers.
  • 21,041 South Dakotans rely on Social Security Disability Insurance, which workers pay into so they can support their families if they develop a severe disability.

TAX CUTS FOR WEALTHY:

  • By passing their budget, Republicans have cleared the first hurdle in moving forward to a vote on a tax bill that has been written in secret and few have seen. If the Republican tax plan were to pass:
  • The richest one percent of South Dakota residents would receive 62 percent of the state’s total tax cuts in 2018. These households are projected to earn at least $589,600 next year and would see an average tax cut of $129,120 in 2018.
  • In stark contrast, middle-class South Dakotans would only receive 5 percent of the state’s total tax cuts. These households would only get an average tax cut of $500 in 2018.
  • Millionaires alone would get 54 percent of the state’s total tax cuts. Their average tax cut would be 532 times the tax cut middle class families would get.
  • 7 percent of South Dakota households would face a tax hike if the GOP tax plan was in effect in 2018.

OTHER CUTS:

  • CUTS TO EDUCATION AND TRAINING: Nationwide, the Republican budget cuts close to $200 billion from services like Pell Grants and student loan assistance over the next decade.

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