Economist: Budget Cuts Will Yield Large Job Loss
A Rapid City economist says Governor Daugaard's proposed budget cuts could cost the Rapid City area between three hundred to one-thousand jobs.
SDPB's CMR has this story
Don Frankenfeld is an economist and former Republican Legislator. He says the spin-off effects of the proposed cutback will significantly harm businesses that provide services to state government funded agencies. Frankenfeld supports a temporary one cent increase in the state sales tax.
"I don't want to me mean to Governor Dugaard he has a terrible dilemma, but I believe he is solving that dilemma by cutting too drastically and by ignoring the possibility that we could get through this with less pain not with no pain but with less pain if we had a modest and temporary increase in the sales tax," says Frankenfeld.
He says the impact of these budget cuts on Rapid City could approach the impact of closing Ellsworth Air Force Base. He says it will take several years to recover the lost jobs.
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