2 Broadcaster Press December 13, 2016 www.broadcasteronline.com Dave Says The Need For A Strong Military Dying Car or Kill the Student Loan? Dear Dave, I’m 38 years old, and I’ve got $12,000 in student loans still hanging over my head. It’s the only debt I have. I make $30,000 a year, and I’ve managed to save $12,000, but I’m also driving a junky, old car that will have to be replaced soon. Should I split the money I’ve saved and buy a $6,000 car while paying off $6,000 of the student loan? Phil Dear Phil, Dave If I’m in your shoes, I want that student loan out of my life as quickly as possible. At the same time, I don’t want you living life without some money in the bank. If you’ve followed me for very long, you know I teach the Baby Steps when it comes to getting out of debt and saving money. Baby Step 1 is to save a beginner emergency fund of $1,000. Baby Step 2 is to pay off all debt, except for your home, using the debt snowball method. The third Baby Step is to build a fully funded emergency fund of three to six months of expenses. You don’t have quite enough on hand for your idea and to have something left over. I recommend paying off $11,000 of the school loan now and then finishing it up as you go. It won’t take much more time. Limp along in the beater for a little while longer and then, when you have no student loan debt, finish your emergency fund and start a car fund. I talk to a lot of people your age who still have student loan debt. But you have the opportunity to punch its lights out in a hurry. If you pour on the coals, you should be able to save money and get a better car in just a few months! — Dave RAMSEY The Teacher was Wrong Dear Dave, My daughter is in her first year of college. Recently, her math Market Yourself Increase your business’s exposure, build connections and multiply opportunities with effective print advertising. instructor walked students through the process of getting a credit card and building credit. We’ve always followed your plan and taught her to do the same. When she asked the instructor if no credit score was as good as a high credit score, the instructor said no. He told the class the only way to buy a home without a high credit rating is by having a huge amount of assets or savings. I think I know your answer, but how do I explain this to an 18-year-old? Allison Dear Allison, Well, the first thing you explain is that college instructors — even tenured college professors — can be absolutely wrong sometimes. A few years ago my daughter took a personal finance class in college, and on the first day the instructor went on a rant saying Dave Ramsey is stupid. He didn’t know I was her dad, but she went through the entire class and never said a word. When she called home and asked what she should do, we told her to take the class and give him the answers he wants on the tests. We reminded her that she’s just taking a class, and that doesn’t mean she has to form her life opinions around what that guy thinks. Sit down with your daughter and gently explain in this instance her instructor doesn’t have a clue what he’s talking about. Explain to her you can get a home loan even if you have no credit score. People do it all the time. There are places like Churchill Mortgage that would be happy to give her an example of this process. It’s called manual underwriting. All you have to do is make a reasonable down payment, have two years at the same job, and provide two years of tax returns. Hope this helps, Allison! — Dave * Dave Ramsey is America’s trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven bestselling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. Broadcaster Press 201 W Cherry St. • Vermillion • 624-4429 By Sen. Mike Rounds The number one responsibility of the federal government is to provide for the defense of our country. One way we do that is by passing the National Defense Authorization Act (NDAA) each year. The NDAA, which has passed the Senate every year for more than 55 years, is a vital piece of legislation that shows our service members and their families that they have the full backing of Congress. I am pleased that the NDAA for fiscal year 2017 passed the Senate with overwhelming support and now heads to the president’s desk to be signed into law. Like years past, this year’s NDAA includes policies to support our wounded warriors, our troops and their families. It also provides our armed forces with the tools needed to deter our adversaries and combat our enemies around the globe. It increases the Department of Defense (DOD) operations and maintenance authorized budget which will allow for more ground and aviation training, additional flight hours to train pilots and better ship maintenance to keep our fleet in good condition for years to come. It also stops the Pentagon’s proposed drawdown of 15,000 soldiers, 2,000 marines and approximately 4,000 airmen. This is important at a time when our military is the smallest it has been since World War II. As a member of the Senate Armed Services and Veterans’ Affairs Committees, providing our troops and veterans with the tools they need and care they’ve been promised are top priorities. The NDAA includes amendments that I offered this year, including language from my Cyber Act of War Act that would require the president to submit a report to Congress defining when an act in cyber space requires a military response. It also includes provisions to improve DOD’s monitoring of prescriptions dispensed at military treatment facilities for the treatment of PTSD and legislation to require training of DOD hiring officials so they can hire qualified civilian cyber security professionals in an expedited manner. As we mark the 75th anniversary of the attack on Pearl Harbor this December, we are reminded of the need to protect our homeland from devastating attacks at the hands of our enemies. Pearl Harbor marked a pivotal turning point in the United States’ approach to national security strategy, and our success in World War II established the United States as a world superpower. In recent years, the size of our armed forces has shrunk to levels that increase the risk that we may not be able to deter adversaries or, with deterrence having failed, defeat them in combat. This year’s NDAA begins to reverse that trend. While not perfect, the NDAA we passed this year authorizes the resources that our armed forces need to remain capable of adequately defending the United States. We owe nothing less to our service members than to give them all they need to succeed. An Overview Of The Fiscal Year 2018 Budget Proposal By Gov. Dennis Daugaard The week of the annual Budget Address is always a busy time in the Capitol Building, and this year is no exception. The halls are filled with Christmas trees and with hundreds of visitors who come to see them. We also welcome newlyelected legislators, incumbents, and those whose legislative service is ending, to discuss the state budget for the upcoming year. After the address, I travel to different parts of the state for my budget tour where I lay out the good news and the bad news of South Dakota’s economy. The news came as no surprise to those who attended Tuesday’s Budget Address. Our state’s revenue for the first several months of the current fiscal year has fallen short of projections, in large part because of lower sales tax collections. Recent revenue weakness is a problem many other states share. The good news is that the South Dakota Council of Economic Advisors projects South Dakota will see steady but slow economic growth in the next few years. According to the council’s economic forecast, although farm income is Happy 80th Birthday Gwen Mount December 12th Cards may be sent to: 46577 Missouri St. Burbank, SD 57010 weak, nonfarm income is expected to grow at rates that are near historical highs. Additionally, the state won’t need to spend all of the money that was appropriated by the Legislature last year. Total state spending in the current budget year is projected to be $34.7 million less than what was budgeted last session. Over the past several years, the state has also received stocks in the unclaimed property fund, and converting those stocks to cash will also generate funds on a one-time basis. Through these savings, the state will be able to meet the revenue shortfall and appropriate modest increases for our priority areas. For the upcoming fiscal year, I am proposing a 1 percent increase for education, health care providers and state employees. I am also proposing that the state add more money to our rainy day funds. It has been my goal to keep the state’s reserves at 10 percent of general fund spending, and right now the reserves are at 9.8 percent. I am recommending that the state add $2.4 million of one-time money to reserves to bring the funds back to the 10 percent level. Among the 50 states, the median rainy day fund is 5 percent. I am also recommending that we use one-time money to help fund the state Animal Disease Research and Diagnostic Laboratory, which is South Dakota’s animal health laboratory, located on the SDSU campus. The lab’s purpose is to provide critical research and diagnostic support to protect our citizens and livestock industry from disease outbreaks. Most recently, the lab responded to outbreaks of Avian Influenza in poultry and PEDV in swine. The facility is out of date and needs to be modernized to meet operating standards. Given our current revenue situation and what other states are dealing with right now, South Dakota is fortunate not to be looking at spending cuts or freezes this year. It is thanks to our adherence to conservative budget practices that, even in a year like this one, we are in a position to balance our budget and slightly increase spending for education and Medicaid. I look forward to a good debate about the proposed budget with the Legislature and the public over the next few months. massage Do you or your loved one need assistance at home? Experienced R.N. available to provide in home, private care! Call 605-659-6597 for more information. for HEALTH 216 West Main Street • Vermillion, SD Give the gift of health this holiday season. Gift certificates make great stocking stuffers! Open Monday thru Friday Lois Hazen, LMT For appointments, call 624-6732 www.loismassages.com Stories you missed this week because you’re not a Plain Talk subscriber A report detailing a house fire in Vermillion on Dec. 1 and the efforts by community members to help the home’s occupants after they lost most of their belongings. A story about a candlelight vigil held in downtown Vermillion Dec. 4 to promote peace, love and tolerance. A story that shares details of the plan to bring “211” service to Clay County. A report of plans to give away approximately 25,000 pounds of food in Vermillion on Dec. 15. And if you want to see: Stories and photos from last Saturday’s winter commencement ceremony at the University of South Dakota. Photos and write-ups from the girls’ and boys’ Tanager basketball doubleheader action last Friday in the VHS gymnasium. A report from Monday’s meeting of the Vermillion School Board. Pick up this Friday’s Plain Talk! Local news since 1884! Here for you yesterday, today and tomorrow. 201 W. Cherry, Vermillion, SD 57069 605-624-2695