Daugaard and urges Congress to get its financial house in order - KTIV News 4 Sioux City IA: News, Weather and Sports

Congress is returning to the capitol after a week long vacation, and another spending fight is looming.

 If lawmakers can't find middle ground, millions in spending cuts will take affect at the end of the week.

Military and defense budgets will be slashed, and every state in the nation will have take a hard look at their budgets.

At the National Governors Conference, South Dakota Governor Dennis Daugaard said the federal government needs to take a lead from states like his, and prioritize.

"We understand that we're spending more than we're bringing in at the federal level and that has to change.  We can't continue the deficit spending.  So, as uncomfortable as it is, and as much difficulty as it creates for people, we need to find some way to bring our spending and our revenues into line," said Daugaard.

Sequestration will have a big impact on state's with small budgets like South Dakota.

Daugaard said his state will lose eight million dollars this fiscal year, and triple that if the cuts continue into the next year.