By Denise Ross

ABC News’ Jake Tapper has a report out this evening about South Dakota’s own Tom Daschle paying more than $100k in back taxes as part of his nomination to Obama’s cabinent. It’s all over  the use of a friend’s car and driver.

Here’s the written report. (The broadcast version aired on Friday evening’s newscast.)

During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying $101,943 in back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007.

AND …

“In June 2008, Sen. Daschle mentioned the use of the car to his personal accountant and asked him if there were any potential tax consequences,” the (Daschle)spokesperson said. “His accountant said that there could be tax consequences and said he was going to fix them as part of Daschle’s 2008 filing.”

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By Denise Ross

Of all the meaty, juicy political news going on, this above all blows my fragile little mind. South Dakota has gone blue. So says Gallup.

This map says the Rushmore state is “competitive” when it comes to partisan loyalties - meaning we are essentially split.

 When it comes to party affiliation (not to be confused with registration), Dems hold a 1-point advantage in South Dakota, according to Gallup’s study.

 As recently as 2002, a majority of states were Republican in orientation. By 2005, movement in the Democratic direction was becoming apparent, and this continued in 2006. That dramatic turnaround is clearly an outgrowth of Americans’ dissatisfaction with the way the Republicans (in particular, President George W. Bush) governed the country.

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By Denise Ross

You’ve got to hand it to Gov. Mike Rounds. He knows how to play everybody, not just like a fiddle but like an entire symphony orchestra.

The governor says, “OMG, the money is sooooo bad that I will be forced to cut funding that helps disabled babies.” (You think I exaggerate for effect; not so.)

The chorus cries, “No! That would be wrong!”

The governor says, “OMG, it’s soo much worse than I thought, and I will have to cut funding for special education, deaf schoolchildren, the state fair, the arts, and on and on. Oh, and raise property taxes.”

The chorus cries, “No! We couldn’t stand it if that happened.”

All the while, a temporary sales tax hike - on the Second Floor table since before the official budget address in early December - waits in the wings to save the day. He’s already got us more than half-way to begging him to raise our taxes.

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While we wait for Gov. Rounds to unveil his newest budget, US Sen. John Thune is looking past that to his 2010 election. Most of the morning’s news is about Thune, in fact. Read on.

Thune hires top talent for 2010: It’s not Dick Wadhams, but Thune has hired the man who ran Senate minority leader Mitch McConnell’s tough 2008 re-election bid for his 2010 race in SD. Which means he’s expecting to draw a tough opponent? Which casts more curiousity onto the future plans of US Rep. Stephanie Herseth Sandlin.

Reports Roll Call:

Sen. John Thune (R-S.D.) has tapped Justin Brasell to be his campaign manager in 2010, according to GOP sources. Thune won one of the closest and most expensive races in the country in 2004 against then-Senate Minority Leader Tom Daschle (D). A veteran of campaigns, Brasell just finished managing Senate Minority Leader Mitch McConnell’s (R-Ky.) successful re-election bid.

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The disappointments out of Obama’s cabinent for SD are multifold. Read on.

WaPo declares Daschle the White House’s biggest loser: Columnist Al Kamen is speaking about office space, and since Daschle-as-health-czar got a basement space he’s seen as losing out to others who got closets near the Oval Office.

… but (Daschle) has nice digs at the Department of Health and Human Services …

Besides two jobs and 2 offices, Daschle also has the comfort of having fueled Obama’s campaign in its early days and his longtime top aide Pete Rouse now serving as one of Obama’s senior advisors with an office near the OO. Plus healthcare reform remains one of Obama’s top priorities.

I’m not worried for Daschle, and I doubt he’s worried for himself.

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While there’s plenty of political news coming out of the nation’s capitol today, there’s also a fair crop of news from right here in the Rushmore state. Let’s start with one from both worlds.

Tribal leaders ready for Obama’s help: Indian officials from around the country (and SoDak) are meeting inside the Beltway and are getting plenty of face time with members of Obama’s transition team.

“We heard some good comments from the transition team. We have a seat at the table, but we have to make sure we continue to be there. If we don’t, they could easily forget us,” said Rodney Bordeaux, chairman of the Rosebud Sioux Tribe. …

Tribal Chairman Joseph Brings Plenty of the Cheyenne River Sioux Tribe … submitted a nearly $70 million stimulus plan.

Obama party in Deadwood: In case you haven’t heard, Bill Walsh is hosting an inaugural ball in Deadwood tonight. Unfortunately, the Hoghouse cannot be there. Photos would be welcome; e-mail them to denise@hoghouseblog.com

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The news seems to be all about budgets and Obama - gloom / doom and hope / change. How can these two things exist simultaneously in our national psyche? Does anybody really know what time it is?

Thune praises Obama: (I swear it’s true.) Sen. John Thune, R-SD, tells the AP that almost-President Barack Obama is being really nice to Republicans, and they really appreciate it seeing as how they got their backside handed to them in the last election.

“He’s setting a nice tone,” Republican Sen. John Thune said, noting that Obama’s team has been reaching out to Republican leaders even though expanded Democratic majorities don’t necessitate it.

Hilde speaks: Or he will speak, Jan. 29 at Dakota Wesleyan University in Mitchell, his hometown.

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If you like talking budgets and numbers, you’ll like today’s news - even if Gov. Mike Rounds doesn’t.

Rounds hails worst numbers ever: In the first of his Friday press conferences of the 2009 legislative session, Rounds coughs up a few details in advance of his 2nd-try budget address coming next week.

• He expects the state to come up a bit more than $50M short before FY2009 closes out June 30.
• He and his staff are now projecting more than an $80M discrepancy between proposed spending and anticipated revenue in the FY2010 budget, which begins July 1 - and which lawmakers will vote on before the session ends several weeks from now.

Likewise, Dilges warns of cuts: Probably at about the same time, Rounds’ budget director Jason Dilges was promising cuts and “perhaps new revenue sources” to the Legislature’s appropriations committee.

“Perhaps”? Don’t be coy, Dilges. And when are “new revenue sources” not tax increases?

Sales taxes appear to have taken dive late in 2008: Also a factor is this report out of Mitchell, where the city’s sales tax collections remained robust until December, when they dropped 6.1% over December 2007.

The new numbers, released this week from the state Department of Revenue and Regulation, put a blemish on an otherwise positive calendar year of taxable sales growth.

BUT THEN, WHAT TO MAKE OF THIS?

Marilyn Wilson, the city of Mitchell’s finance officer, said Thursday she had not yet received all of the city’s sales tax receipts for December. Through November, the city’s collections were still up 3.5 percent over the previous year, which was higher than the city’s budget forecast of 1.5 percent.

Does that mean the final numbers aren’t in yet? (December tax receipts are due at the end of January, no?)

Meanwhile, Dem lawmakers keep promising a plan: And they say they’ve found about $90M. Don’t hold out on us! If you’ve found money, let’s see it before the programs get cut and the taxes get raised.

The plan, which reprioritizes state spending,

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By Denise Ross

You’re invited to help Sen. John Thune celebrate turning 48.

This can be found on Thune’s campaign website, www.johnthune.com, under the Events tab.

Friday, January 30, 2009
Birthday Party 5:00 - 7:00 pm
Dance 8:00 pm - 11:00 pm featuring
DNR Showband and Revue
Ramkota Hotel Best Western
3200 West Maple Street
Sioux Falls, South Dakota

Please join Senator John Thune and his family as we celebrate John’s 48th birthday.
Birthday cake and hors d’oeuvres will be served.
Senator Thune will be speaking at 6:00 pm.

The online invite offers a few RSVP options - 1) pen a happy b-day message to Thune and bring yourself to the party; 2) pen a happy b-day message to Thune and make a donation. (I’m sure the two aren’t mutually exclusive, tho.)

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Here’s what might tickle the fancies of South Dakota’s political junkies, from today’s news.

SD senators switch sides on bailout: Could it be partisan politics? Nah. Republican US Sen. John Thune and Democratic Sen. Tim Johnson have switched positions on releasing the second half of that big ol’ bailout package.

Thune, who was all about the plan when it came from the GWB administration, now says maybe not. Johnson says now that Obama’s at the controls, he’s comfortable with voting in favor of spending the billions.

Said Thune: “My fear is (the second installment) will become something that is used for a lot of other purposes.”

Said Johnson: “It’s a mistake to send a president out there unsupported.”

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