The House and Senate Appropriations Committees met separately today for bill hearings. Before the breakdown of the meetings today, I would like to provide a follow-up to the report on the South Dakota Investment Council budget. The Governor has recommended a budget of $8,917,882 in other funds for the investment of state funds. This is an increase in $644,845 in other fund expenditure authority.
Senate Appropriations:
SB 144-limit increases in spending by state government
According to Senator Heidepriem, the bill’s prime sponsor, this bill only allows state government to grow at a rate of 3% per year or by the rate of inflation, whichever is less. Senator Heidepriem noted that this same cap on growth has been instituted in Indiana and they have seen considerable savings. The Bureau of Finance & Management testified against the bill because it would restrict government spending on federally mandated services (Medicaid, SCHIP, etc.).
Motion to defer to 41st Day, Passed 5-1 (Hundstad opposed; Bartling excused)
SB 27-authorize the South Dakota Building Authority and the Department of Human Services to provide for the design, construction, and equipping of a dietary services building addition to the Human Services Center
The Department of Human Services (DHS) testified in favor of this bill. The current nutrition facility used at this location is out of date and as of 2013 will no longer be supported by the manufacturer. The DHS argues that they have no choice, they must build a new facility. Senator Brown moved to amend the bill to require the DHS to present evidence that they have received a preferred provider contract before they begin the project.
Motion to Amend, Passed 4-1 (Hunhoff opposed; Hundstad and Bartling excused)
Motion Do Pass as Amended 5-0 (Hundstad and Bartling excused)
SB 122-repeal certain procedures required when actual state revenues fall below legislatively adopted estimates
Senator Ahlers, the bill’s prime sponsor, stated that the law this bill repeals was ruled unconstitutional. As it stands, the law allows the Governor to set expenditure rates for all budget units when state expenditures come in lower than expected.
Do Pass 5-0 (Bartling and Hundstad excused)
House Appropriations:
HB 1051-revise certain allocations for disabilities in the state aid for special education formula
In the Governor’s recommended budget, there is no inflationary increase for education, and this bill implements the same level of special education funding for school year 2010 as school year 2009.
Do Pass 9-0
HB 1050-revise the per student allocation for the state aid to general education formula
The Governor recommended a 0% increase in the per student allocation for education, so HB 1050 sets the per student allocation at $4,804.60 for FY11. This is the same per student allocation for FY10.
Do Pass 6-2 (Burg and Wismer opposed; Dennert excused)
HB 1215-appropriate funds for increased wages for employees of nursing facilities and to transfer funds from the health care trust fund
Representative Van Gerpen presented HB 1215. This bill appropriates $537,588 from the general fund to the Department of Social Services. This money would be matched by federal dollars in the amount of up to $998,377. These funds would go to providing wage increases to employees of nursing home facilities, except nursing facility administrators. The nursing home employees would gain a wage increase of about 1%.
Chairman Tidemann deferred action on this bill
HB 1122-appropriate money for the Northern Crops Institute
Chairman Tidemann proposed this legislation that would appropriate $50,000 to the Northern Crops Institute (NCI) located in Fargo, ND. Chairman Tidemann argues that the NCI helps market the crops that are produced in South Dakota. He also stated that this spending goes back to 1983.
Do pass 7-2 (Peters and Wink opposed)
All figures can be confirmed by following links found on these pages:http://legis.state.sd.us/sessions/2010/ReferenceDocuments.aspx
Specific facts and figures cited in the Good Morning Taxpayer – TAS Report
have all been obtained through the official Legislative website,
http://legis.state.sd.us and by attendance at the daily committee meetings.