TAS Day 32

TAS Day 32

On the 32nd legislative day the Joint Appropriations Committee met with the Bureau of Finance and Management (BFM), and the Legislative Research Council (LRC) to discuss the revenue projections for FY 11, and FY 12.

The BFM, and LRC presented separate revenue projections based on economic information for the state.  These projections are extremely close, in fact they only differed by 1.07% in the last two years. The Appropriations Committee will meet again Monday to adopt a final revenue proposal.
The Senate Appropriations Committee also met on the 32nd legislative day to discuss House Bill 1245. Originally the Senate Appropriations had cleared their agenda; however due to some miscommunication on the House side this bill came to the committee late.

Currently veteran county service officers budget is funded by 25% state funds. HB 1245 would have cut this program by nearly $166,000 which is distributed throughout the entire state based on the population of the county. There was an amendment made that would strike out this full amount and cut only traveling expenses which will be approximately $19,500 in cuts. The amended HB 1245 passed with an 8-1 vote.

TAS Day 31

TAS LD 31

The House Appropriations Committee met this morning on Senate Bill 152. This bill will change the percentage of state aid to education and percentage of local property tax payers. This bill will not raise taxes, but it will not lower taxes as proposed in Governor Daugaard’s budget.
In fiscal year 2010 the state percentage to education was 56.1% with the local effort being 43.9%. Senate Bill 152 will allow the state’s share to go down by the proposed 10% cut. The states share will now be 53.8%, with the local effort being 46.2%. The Chair deferred action to a later day.

SB 186 failed on the 30th day on the House floor. It was taken off the table and hoghoused by the House Appropriations Committee. SB 186, now SB 133, would not change the cap allotted to the sparse schools. If the “sparse schools fund” is not fully funded through the general appropriations bill, SB 186 would pro-rate money to each of the sparse school districts. The amended bill passed out of committee with a 8-1 vote.

SB 7 also failed on the house floor and the Appropriations Committee took it off the table. Now SB 124 will appropriate money for the construction of a maintenance shop in Pierre for the Bureau of Administration (BOA). Currently the BOA has a lease with the Pierre School District, however the school now needs that shop space and the BOA needs a building to store equipment. This bill passed out of committee 9-0.

THINKABOUTIT

Prior to to the 2011 Legislative session the following “THINKABOUTIT” was sent.  Attached is a March 5, 2011 Aberdeen American News article by Bob Mercer which provides an update and more information relative to the Structural Deficit and Spending Issues the 2011 Legislature is facing now and in the future. 

As Mercer points out: “It’s probably also overdue that a governor, his Cabinet secretaries for education, social services and human services, the K-12 education community and the health-care sector come together around tables to start charting different ways for the learning and care to be accomplished.”   Such a process would also be worthwhile for Higher Education and local government at all levels.    
——————–
South Dakota legislators cannot dodge budget reality
——————–

BY BOB MERCER
American News Correspondent

March 5 2011, 12:00 AM CST

As the Legislature enters its final week of the 2011 session, the issue hanging
unresolved is state government’s 2012 budget, which begins July 1, and the
governor’s recommended 10 percent cuts.

The complete article can be viewed at:
http://www.aberdeennews.com/news/aan-south-dakota-legislators-cannot-dodge-budget-reality-20110304,0,3506237.story

THINKABOUTIT–IT’S THE SPENDING
 
Free Enterprise Works–SD #1 Economic Freedom
 
The era of Structural Deficit Denial in South Dakota has finally ended, but the period of Structural Deficit reduction has not started.  That Structural Deficit from FY 2004-2010 has accumulated over the years to plus/minus $120 million and with the over $80 million for FY 2012 the new Governor and Legislature are facing over $200 million of structural deficit spending.
 
This is at a time when revenues (sales tax, video lottery, contractors tax, bank franchise tax, insurance tax) will continue to lag the economic (hopefully) recovery. With an estimated revenue growth of only 3% in FY11and going forward, the Budget Structural Deficit will not recover until FY 2014. 
 
Also, unemployment continues at 4.5%, which is 61% higher than 2007; pension fund income has decreased; state employees have not had a salary increase for two years; the low-hanging “special other funds” fruit has been harvested and now the State faces $150 million funding shortfall for the Homestake project.  The saying is: “Yes, that is a very important program, but we cannot afford it.”
 
This is not new news to the incoming Governor and Legislature.  Short-term they must cut spending to eliminate the $14 million to balance the FY 2011 budget, not spend the reserve funds and cut the structural deficit.  Long-term they must reduce the accumulated structural deficit, balance the budget and continue to reduce spending to compensate for lagging revenue. This will ensure a strong and attractive economic climate for future growth.
 
The state budget would benefit from the outside perspective of a Temporary Group to set a long-term spending goal for state government.  The Group would not only get government spending back in the box, but would also determine how much of the South Dakota economy should be allocated to state government and its fiscal future.
 
Also, have a permanent Economic Council to give state government a perspective from the world of business and finance when shaping the state’s fiscal plan. This would insure that the budget is honestly balanced, protects reserve funds, and only spends the taxpayers money on programs that demonstrate quantifiable results; just like every successful business in South Dakota.
 
The American people are looking for individuals that resemble who they are.  A fresh approach will let the citizens in South Dakota know that their state government is under control and that their voice has been heard in Pierre.
 
THINKABOUTIT

TAS Days 27-28-29

TAS LD 27

The legislature made it through crossover day, and House and Senate Appropriations committees met separately to discuss bills that had made it out of their house of origin. The Senate Appropriations committee had hearings for 5 House Bills.

HB 1007     authorize the South Dakota Building Authority to issue revenue bonds to provide for maintenance and repair on facilities controlled by the Board of Regents and to provide appropriations therefore.  This bill will be paid for. This was done back in 1994 and the program was very successful at that time, and the Board of Regents believes that it could once again do well. This is paid for through student’s tuition payments. Do Pass with a vote of 8-0
 
HB 1008    authorize the Board of Regents to expend higher education facilities funds to maintain and repair facilities occupied under capital leases. This bill would allow the Board to use funding to make repairs to buildings that the state leases but is on a state university property. The state leases these buildings for one Dollar per year. It was interesting that the Board of Regents came with no specific building on the bill. The committee members noticed this and immediately drafted an amendment to be sure that the money goes to the right cause.

HB 1246     make an appropriation to reimburse certain family physicians, midlevel practitioners, and dentists who have complied with the requirements of the physician tuition reimbursement program, the midlevel tuition reimbursement program, and the dental tuition reimbursement program. This program can mean many things as to quality of life for the people that it serves; the small communities. Not only does it help the health of these communities, but it also improves economic development. Many of the physicians that do this program do end up staying in these small towns instead of leaving. To participate in this program the students must agree to accept Medicaid, Medicare, and CHIP. Retention numbers: 19 physicians have finished, 13 are still in small communities, four dentists have finished the program, and all 4 of those are still in these small towns. Do Pass motion 8-0 unanimous vote.

HB 1247     make an appropriation to fund property and sales tax refunds for certain elderly persons and persons with a disability. $500,000 and will do exactly what the bill says, it has been in SD since 1974 and the refunds are for the more needy people in the state. Average refund is about $153. Must be 65 years, or be disabled. Any leftover amount is split between the lowest 1,000 applications. Must be a low income elderly person.  A Do Pass motion was made and passed unanimously 8-0.

HB 1249  authorize a carryover of the fiscal year 2011 state aid to special education appropriation to fiscal year 2012. This bill is to meet the Maintence of Effort for the program of IDEA which is a federal funding source. This money goes to local school districts, the amount is around $30 million dollars per year. The state must make the same amount available as it did the previous year. This is not a new appropriation, but money that has been previously given. Do Pass with a unanimous 8-0 vote.

SB 7 authorize the Bureau of Administration to construct a maintenance shop in Pierre, to make an appropriation therefor, and to declare an emergency. SB7 Passed the House Appropriations Committee unanimously.

SB 10 appropriate certain funds for the construction of a new dairy manufacturing plant at South Dakota State University and to declare an emergency. SB 10 passed house committee unanimously 8-0.

SB 11 make an appropriation from the coordinated natural resources fund to the State Conservation Commission and to declare an emergency. SB 11 passed House Appropriations unanimously 9-0.

SB 51 revise certain provisions relating to a previous appropriation for renovation of the nursing care building on the South Dakota Veterans’ Home campus and to declare an emergency. SB 51 passed unanimously with an 8-0 vote.

SB 52 authorize the South Dakota Building Authority and the Department of Military and Veterans Affairs to provide for the design, construction, and equipping of the Veterans’ Home near Hot Springs and to declare an emergency. SB 52 passed out of the House Appropriations Committee with a unanimous vote of 8-0.

House Appropriations Committee will meet once again tomorrow to discuss bills, however the Senate will not be meeting on the 28th legislative day.

TAS Day 28

Senate Appropriations did not meet on the 28th legislative day; however the House Appropriations Committee did meet to discuss bills.

House Appropriations

        SB 86-establish reports on the price of government and to make the data available to the public. A motion to move SB 86 to the 41st legislative Day and passed with a unanimous 9-0 vote.

        SB 168-revise certain provisions regarding certain state purchases of supplies and services. Motion was made to Do Pass SB 168 and did so with a unanimous 9-0 vote.

        SB 184-make appropriations from the water and environment fund, the water pollution control revolving fund subfund, and the drinking water revolving fund subfund for various water and environmental purposes, to revise the state water plan, and to declare an emergency. A motion was made to Do Pass SB 184 with a unanimous 9-0 vote.

        SB 186-revise certain provisions related to distribution of funds to sparse school districts. A motion was made to Do Pass SB 186 with a narrow 5-4 vote.

        SB 189-revise certain budgetary provisions relating to certain funds received from the federal government. A motion was made to Do Pass SB 189 with a unanimous 9-0 vote.

        SB 192-revise certain allocations for disabilities in the state aid for special education formula. A motion was made to Do Pass SB 192 with a unanimous 9-0 vote.

TAS Day 29

The Senate, and House Appropriations Committees met separately on the 29th legislative day to discuss bills.

Senate Appropriations 

        HB 1231-provide for the sale of certain surplus real estate, to appropriate the proceeds to the revolving economic development and initiative fund, and to revise certain provisions relating to the sale of certain surplus property. The motion was made Do Pass HB1231 with a 6-1 vote.

        HB 1232-Provide for the sale of certain surplus real estate, to provide for the deposit of the proceeds, and to revise certain provisions relating to the sale of certain surplus property. The motion was made Do Pass HB 1232 with an 8-0 unanimous vote.

        HB 1244-make an appropriation for costs related to disasters in the state.  The motion was made to Do Pass HB1244 and prevailed with a unanimous 7-0 vote.

With the passage of these bills, the Senate Appropriations Committee has no more bills on their agenda.

House Appropriations    

       SB 124-appropriate money for the Northern Crops Institute. The motion was to table SB 124 and unanimously passed 9-0.

       SB 133-change the day of the month on which state aid to general education payments are made to school districts, and to provide for the redistribution of certain funds appropriated for state aid to education. The motion was to table SB 133 and so passed unanimously 9-0.
       
       SB 152-require that any reduction in the general fund levies of a school district only account for increases in the taxable valuation of property and to revise the property tax levies for the general fund of a school district. SB 152 was deferred to a later day.
      
       SB 185-revise and provide for the adjustment of the per student allocation for the state aid to general education formula. SB 185 had an amendment added to the bill, the amendment passed. The committee then made a motion to Do Pass the bill and it did so with a 6-3 vote.

       SB 187-revise certain provisions regarding the dairy inspection fund. Motion was made to Do Pass  and it did so with a unanimous 9-0 vote.

       SB 188-revise certain provisions regarding the eligibility of National Guard members for certain graduate tuition reductions. SB 188 had a motion to Do Pass and it did so with a 7-2 vote.

       SB 190-revise the General Appropriations Act for fiscal year 2011.  Motion was made to Do Pass SB 190 with a unanimous 9-0 vote.

       SB 191-revise certain provisions providing for the sales tax on food refund program. SB 191 was amended and had a Do Pass as amended with a unanimous vote of 9-0.

TAS Day 25 & Day 26

TAS Day 25

On the 25th legislative day the Senate, and House Appropriations Committees met separately to discuss bills. Today’s bill hearings were the last to be heard before crossover day. Action was taken on 3 separate Senate Bills, along with 5 separate House Bills.

The Senate Appropriations Committee.

SB 190: revise the General Appropriations Act for fiscal year 2011. SB 190 is the General Appropriations bill that will have many different agency proposed budgets. SB 190 passed with a unanimous vote with all amendments included. This bill will be amended several times before it’s actually adopted.

SB 185: revise the per student allocation for the state aid to general education formula. SB 185 is a vehicle bill that deals with all appropriations to education, it passed with a 8-1 vote.

SB 191: repeal certain provisions providing for the sales tax on food refund program. SB 191 is a bill is asking for a repeal of the food refund program.
SB 191 was amended and had a recommendation of Do Pass unanimously.

The House Appropriations Committee:

HB 1250: revise certain provisions regarding the South Dakota opportunity scholarship program. HB 1250 was tabled with a vote of 6-3.

HB 1115: make an appropriation to the Board of Regents for the general operation.  HB 1115 was tabled by a unanimous vote.

HB 1213: limit increases in state government spending. HB 1213 was deferred to the 41st legislative day.

HB 1243: revise the property tax levies for the general fund of a school district. HB1243 was amended, and then passed unanimously as amended.

HB 1244: make an appropriation for costs related to disasters in the state. HB1244 passed committee with a 8-1 vote.
 
LD 26 TAS

The Department of Education had their budget hearing today. This is the last of many budget hearings that the Appropriations Committee has taken testimony from throughout the legislative session.

The Department of Education (DOE) receives 33.9% of the State’s General Funds at $359,436,293. This is a $41,013,241 or 10.2% reduction. The DOE in addition receives $208,318,380 in federal funds, and $4,404,700 in other funds. The DOE receives $572,159,373 in overall funding.
DOE appropriates $329,331,804 or 92% of their General Funds to K-12 State Aid, $20,540,284 to Technical institutes, and the other 2% goes to other various needs in the department.

General Administration receives $6,941,084 in funding. This funds the Secretary’s office, Indian Education, and Finance & Management. There are 34.5 FTE in General Administration office; this includes the Board of Education which sets policy for public education in the state.

The division of curriculum, career, and Technical Ed receives $11,585,845 in overall funding from the DOE. This includes 15 FTE and offers services such as assisting schools, and post secondary institutes in program planning, and implementation of programs.. This includes Advanced Placement (AP) courses which are some higher level classes that are taught over the Internet.

Education Resource division provides general supervision, regulation, execution, and control over the elementary and secondary education system,  providing leadership and technical support to all public and non-public schools for a quality education. This division is appropriated $198,268,934 in overall funding from the DOE.

The state library is funded under the DOE and supports the development of local libraries, provides online databases for research, and provides services for state employees. The state library is appropriated $2,988,999 in overall funding with 28.5 FTE.

Technical Schools currently have student placement rates of 93% with 80% of those students being employed in South Dakota. Technical Schools of South Dakota are appropriated $20,540,285 in overall funding.

The Division of State Aid to Education was the last division heard from by the DOE. The DOE is appropriated $329,331,804 in general funds. This includes a $38,913,040 decrease in general funding. The state expects there to be 125,998 students in the state next year. Currently students are allocated $4,804.60, however with the cuts that Governor Daugaard would take, the allocation per student would be $4,324.14. If the state aid were to stay the same, DOE would be appropriated $605,321,944.80 however, with the cuts the DOE will be appropriated at $544,789,231 for the Per Student allocation. For a full calculation of the State Aid Formula, visit the DOE website at www.doe.sd.gov.

The Appropriations Committee will have no more budget hearings; however the Bureau of Personnel will be coming in to talk about the health insurance benefits. You can review all of the information from previous Hearings in the daily report of TAS. Bill hearings will resume immediately on the 27th legislative day.

THINKABOUTIT

THINKABOUTIT—TAXES
 
Free Enterprise Works in SD–#1 Economic Freedom
 
A “GOOD TAX” is one that someone else pays!!  comes to mind as the talk turns to tax increases to solve the State’s structural deficit. And as has been pointed out by the Governor, a structural deficit is a spending issue not a revenue issue.   Notwithstanding that government at all levels will expand and grow to meet the tax revenue available, State government is taking the necessary steps to control spending.  Administrators are taking salary cuts, state employees are not receiving a salary increase, expenses are being reduced, etc.  However, the largest recipient of state taxpayer dollars, education, is the most vocal for increased taxes without any proposals to reduce administrator salaries, reduce administration expenses,  improve efficiency, etc.
 
This is occurring in a State environment of decreased state revenue, mandated federal medicaid and healthcare costs to the state, continued high unemployment and slow economic recovery.  So before everyone rushes to increase the state sales tax dedicated to K-12 education, there are some facts and information that are important to the debate which impact state and education tax revenue.
 
The SD Constitution exempts certain entities and facilities from certain taxation and limits imposition of others. 
 
There are a large number of sales tax breaks that have grown over the years.  A 2003 Issue Memorandum by the Legislative Research Council. on Taxation lists some One Hundred Seventy (170) SDCL tax exemptions from sales and use taxes.  (the number probably has not decreased since 2003)  There are estimates that the State loses from $50 MILLION to $500 MILLION annually from these tax breaks.
 
A February 15, 2011 report by the SD Chamber of Commerce & Industry lists the percentage by category of industries as to where the state receives the sales tax revenue:

Retail, 53.02%; Trans and Public Utilities, 16.6%; Services, 16.2%; Wholesale Trade, 6.9%; Manufacturing, 3.6%; Financial Services, 2%; Agriculture, 1.2%.   
 
The 2003 LRC Memo (for which there may be more recent numbers) also outlines by percentage the total statewide property taxes that were levied on each classification of property:

The three major categories are; Owner-occupied Property, 36.4%; Other Property, 31.5%; Agricultural Property, 24.6%.
 
Hopefully this type of information and data along with other issues will be understood and considered before a “short term” tax increase with long term impact on the taxpayers is considered. 
 
THINKABOUTIT

TAS Day 24

TAS Day 24

The Joint Appropriations Committee met with the Department of Social Services (DSS).  Many of the DSS employees, along with representatives from respective institutions, were on hand for the budget hearing. The DSS is allocated the second largest amount of the State’s General Funds (second only to education).

The DSS is 32.5% of the State’s General Fund Budget. The Governor’s recommended budget for the DSS is $364,325,077 in General Funds. This is a $22,654,302 increase in funding. The DSS also receives $631,723,553 in federal funding which is a $48,720,788 decrease in federal funding. The other funds appropriated for the DSS are $9,050,460 which is a $1,967,735 decrease. Overall funding for the DSS is $1,005,099,090.

FMAP or Federal Medical Assistance Percentage determines what the state vs. federal payment will be to Medicaid. In the state of South Dakota, every percentage change to the FMAP has a $6.5 to $7 million general fund impact. The FMAP percentage is set by the Federal Government. This year the state match is going from 34.91% to 40.34%. This means for every $1 spent, in FY11, approximately 35 cents was paid for by the state, with 65 cents coming from the Fed. For Fiscal Year 2012 the rate is going up to 40.34% or 40 cents per dollar cost for the state. The FMAP is based on how well a state’s economy is doing per capita. The better the state’s GDP the more the state must put in.

The Office of the Secretary is recommended a budget of $26,630,783 in overall funds.  This includes $7,327,250 in General Funds, Federal Funds of $19,287,312 and $16,221 in other funds. This is an increase of $66,891 in total funds from FY 2011.

The Division of Economic Assistance (EA) includes many services:  Energy assistance & weatherization, Medicaid (Title XIX and CHIP), Supplemental Nutrition Assistance Program (SNAP), Sales Tax on Food Refund Program, and Temporary Assistance for Needy Families (TANF). The EA is appropriated $87,590,491 of the DSS budget with $66,878,400 in Federal Funds, and $20,399,384 in General Funds. This is an overall cut of $5,337,775.

Medical Services alone take up the largest amount of overall funds at $539,478,701. In the DSS budget proposal, there will be a increase of $25,278,292 in General Funds, with $19,266,815 decrease in Federal Funds, and no change in other funds for a total increase of $6,011,477.
The Division of Adult Services and Aging (ASA) are responsible for taking care of our elderly in the state. This includes long term services, in home services, community services, and more. The ASA has a budget of $171,116,637 with $68,738,412 for General Funds, Federal Funds of $100,895,357, and $1,482,868 in other funds. This is a total reduction of $21,072,504.

Division of Child Support (DCS) assists those families who need help to collect child support. This can come in the form of enforcing child support orders, enforcing health insurance costs, locate non-custodial parent, and more. This division has staff located in 8 communities throughout the State. The DCS is budgeted for a total of $7,200,056 with $1,795,724 coming from General Funds, Federal Funding at $2,980,702 and $2,423,630 in other funds. This is a total reduction in funds of $391,647.

Division of Child Protection Services (CPS) is responsible for taking reports of child abuse and neglect, family assessments, maintaining or reuniting families, obtaining placements for children, and more. CPS has staff located in 21 communities throughout the state and mainly deals with service providers along with tribal agreements. CPS has a budget of $58,267,713. This includes a $26,521,070 of General Funding with Federal Funds of $30,531,206 and $1,215,437 in other funds. This includes a total cut of $1,552,360.

The Division of Child Care Services (CCS) provides services such as subsidies to assist eligible working families with the costs of their child care, licensing and registration of child care programs, and professional development and training opportunities for child care providers. CCS is appropriated $20,338,108 with $3,345,727 coming from General Funds, Federal Funding at $16,252,562 and other funds at $739,819. There is a total reduction of funds of $2,010,026.

Human Services Center (HSC) provides services such as adult & adolescent acute inpatient psychiatric treatment, adult psychiatric inpatient rehabilitation, adult & adolescent substance abuse treatment, and more. HSC receives $40,897,615 with $29,423,446 being General Funds, Federal Funds at $10,890,167, and other funds at $584,002. This is a $744,698 reduction.

The Division of Mental Health (DMH) provides individual, family, and group therapy, along with family psycho-education and support, case management, assessment and evaluation, and more. The DMH contracts with 11 community mental health centers. The DMH is appropriated $28,274,496 with $15,735,835 in General Funds, Federal Funds of 11,490,949, and other funds of $1,047,712. This includes a $1,656,663 reduction.

Division of Alcohol & Drug (DADA) provides services on substances abuse prevention, gambling treatment, detoxification services, substance abuse assessments, and more. DADA works with 58 accredited prevention/treatment providers. DADA receives $24,912,861 in total funds with $9,924,855 in General Funds, Federal Funds of $14,439,071, and other funds of $548,935. This is a reduction of $1,346,501.
 
·         Supplemental Nutrition Assistance Program(SNAP) provided for 43,144 people in December 2010
·         Temporary Assistance for Needy Families (TANF) had a caseload of 3,303 in December 2010
·         FY10 monthly average of medical service eligibles was 111,005
·         57% of the elderly people in nursing homes are on Medicaid
·         1,640.6 FTE

The Appropriations Committee heard from many different opponents of the recommended budget throughout the hearing today, however there were only a few who came forward to testify with solutions as to how to help deal with the budget reductions.

For More information you can look at the informational hearing that took place on the 1/25/2011. This is TAS Day 5 on the menu.

TAS Day 23

TAS Report Day 23

The Department of Corrections (DOC) met with the Joint Appropriations Committee the 23rd day of the legislative session. The DOC had previously met with the committee to discuss some general information; today’s hearing was a more precise budget hearing.

The DOC is budgeted a total amount of $98,614,310. Of the budgeted amount, the largest portion of $78,416,278 comes from the State’s General Fund which is about 7% of the overall State General Fund. The Federal funds for the DOC are $12,060,900 and other funds, $8,137,132.

The DOC is a confusing department to look at due to the federal stimulus money. Currently if you look at the General Funds for the DOC there is a  $2,053,740 increase. However, with the stimulus money of $8,954,040, the General Funds were reduced by the same amount at that time. Now that the stimulus money has been spent, the state needs to replace the money that reduced the DOC General Funds. With the increase in General Funds, less the Federal Funds from the stimulus swap, there is a 10% cut to the DOC.

The DOC was very secure in saying that they were not worried about the cuts harming the progress that they have made with the people they serve over the last several years. The DOC also stated that these cuts WILL NOT compromise public safety.

·         $64,213,701 of the funds are for Adults or 65.12% of the Budget
·         $32,338,133 of the funds are for Juveniles or 32.79% of the Budget
·         $2,062,469 of the funds are for administration, or 2.09% of the budget
·         The DOC has 845.3 employees

After the Joint Appropriations meeting with the Department of Corrections, the Senate and House Appropriations Committees met separately.

Senate Bills:————————————————————————————————————

SB187 revise certain provisions regarding the dairy inspection fund. Currently there is a .7 cent per hundred- weight of dairy produced. The money goes to the Dairy Inspection Fund. This bill allows the use of  60% from the Dairy Inspection Fund and 40% of General Funds. The cost used to be split 50% General Funds 50% Department of Ag. Recommended a Do Pass motion 9-0.

SB 188 revise certain provisions regarding the eligibility of National Guard members for certain graduate tuition reductions. This would not affect any guardsmen that are currently enrolled, but would affect anyone signing up for a graduate degree after July 1, 2011. This would prevent the Department of Military and Veterans affairs from having to pay for 50% of the in-state tuition. Do pass motion with 9-0 vote.

SB 199 appropriate money from the property tax reduction fund for the enhancement of human capital. This bill would have allowed $20,000,000 from the tax reduction fund to be put into use for several different departments. The motion on the bill was to table SB 199 and passed with a vote of 7-1.

SB 124 appropriate money for the Northern Crops Institute. This bill will move the money appropriated to the “Other” funds instead of the “General” funds, as well as substitute the amount ($50,000) with ($1). SB 124 passed as amended with a 9-0 unanimous vote.
          
SB 37- revise the appropriation for the construction and renovation of a combined minimum security and parole facility in Rapid City and to declare an emergency. This bill increased the amount of money appropriated for the construction of the new parole facility from $825,000 to $2,625,000 in other fund expenditure. This had a recommendation of Do Pass SB 37 with a unanimous Yes vote.

House Bills:——————————————————————————   

HB 1227 transfer money from the health care trust fund.  This bill was amended to switch the amount of $10,000,000 to the amount of $15,000,000 from the treasurer to provide payments to Medicaid. The motion to amend failed; the next motion was to defer HB 1227 to the 41st legislative day and passed with a vote of 6-2.     

HB 1239- increase the amount transferred from the health care and education enhancement trust funds. Currently 4% is transferred from these funds.
HB 1239 would have changed that number from 4% to 7% without invading the principal.  Deferred to the 41st legislative day with a vote of 6-2.

HB 1194 create the South Dakota endowment fund. This bill has the South Dakota State Investment Council create an exempt nonprofit corporation to administer. There is no amount of money attached to this endowment from any of the state’s funds. The recommended motion was Do Pass and so it did with a vote of 8-0.

TAS Day 22

TAS Day 22

The Department of Human Services (DHS) was heard the22nd day of the legislative session. The department has been reorganized under the Governor’s restructure, with many of the divisions going to the Department of Social Services. Many of the DHS divisions were on hand for testimony.

The DHS is currently appropriated $53,705,117 of the State’s General Funds. This represents a $2,317,586 increase in General Funds. The Federal  Funds appropriated are $98,262,182; this represents a $8,747,250 or 8.2% cut. The other funds appropriated to the DHS are $3,195,286 which is only a $655 cut. The DHS is appropriated $155,162,585 in total funding which shows an overall cut of $6,430,319 or 4.0%. The DHS will receive the rest of their cuts from a reduction in the rate from the providers. For all of the General Fund cuts you will recognize Federal Fund cuts.

The largest cut that the DHS is looking at is in their Division of Developmental Disabilities. Currently this division of the department is budgeted $105,657,970 of the overall DHS budget. This is a recommended decrease of $2,818,429 from 2011.

·         The DHS cares for approximately 26,989 individuals.
·         The division for Development of Disabilities cares for 4,892 individuals.
·         20,241 individuals are serviced through the Rehabilitation Services.
·         1,856 receive services for the Blind and Visually Impaired.
·         The South Dakota Development Center (Redfield) costs $450 per day per person.
·         Individuals located in the Community Support Providers costs $112 per day per person.

TAS Day 21

TAS LD 21

The Appropriations Committee has many big budget hearings coming up this week. Monday the Appropriations Committee met with the Board of Regents (BOR). South Dakota currently has six universities that it funds. The Appropriations Committee heard from each of the six universities. South Dakota ranks number one for being the lowest average cost for a non-resident in both undergraduate and graduate programs for all of the surrounding states.

The BOR accounts for 13.5% of the State’s General Fund Budget or approximately $150,748,788 which represents a total cut of $17,209,994. In addition to this the BOR receives $244,468,345 in Federal Funds, and $377,472,037 in other funds. Overall the BOR is appropriated $772,472,037

Last year the board increased tuition fees by 4.6%. The BOR supplied the committee with two possible scenarios that will have to happen with a 10% budget cut. One was a 6% increase in tuition which would take about 7.1 million dollars out of the 10% cut. The other was a 8% increase in tuition which would represent a 9.4 million dollar increase in the BOR budget.

South Dakota State University (SDSU) was the first university to present its budget. SDSU has 12,816 students with 76% of those students being residents. Currently SDSU has 32 accredited undergraduate programs. SDSU is looking at a $4,931,137 of General Fund cuts.

University of South Dakota (USD) was second to be heard. USD topped 10,000 in enrollment in 2010. USD is #3 in the nation with students choosing Family Medicine, and #4 in the nation with graduates practicing in rural areas. USD will receive a cut of $3,408,413 of General Fund cuts. There will also be a cut of $1,510,628 of funds from the Sanford School of Medicine.

South Dakota School of Mines and Technology (SDSM&T) was next to be heard by the appropriations committee. The school receives $14 million in state appropriations, with a $148 million dollar impact on the state’s revenue. SDSM&T will receive $1,413,752 in General Fund cuts

Dakota State University gave its presentation next. DSU has 36 undergraduate majors with 5 different kinds of master’s degrees, and 1 doctorate program. In FY 2009 DSU received $2.8 million in grants, FY 2010 DSU received $8.7 million in grants. DSU is receiving a cut of $826,936 in General Fund cuts.

Northern State University (NSU) was the next to present. NSU has grown their enrollment by nearly 20% in just one year or a total of 3,296 students. NSU also offers the Distance Learning to 99 high schools with nearly 1095 high school students being served. NSU will receive a cut of $1,190,222 in General Fund cuts.

Black Hills State University (BHSU) was last University to have their hearing. BHSU currently has an enrollment of 4,722, and has students from 65 of the 66 counties in the state of South Dakota. BHSU is going to receive a $1,096,988 cut in General Funds.

Special Schools were the last to be heard from. Currently the Aberdeen campus has 25 students from preschool – the age of 21. The South Dakota School for the Blind and Visually Impaired will receive a $273,150, and the South Dakota School for the Deaf will receive a $295,406 in General Fund cuts.

Currently money is not able to be transferred between universities. The Board of Regents has met the proposed budget cuts, and perhaps a way to get to these cuts would be the possibility of switching funds between universities.

·         Fall 2010 enrollment was up to 26,625 Full Time Students.

·         Fall 2010 total head count (full/part time) 36,440 students.

·         25,780 are resident students from everywhere in the state.

·         Currently the BOR is in charge of 11 Universities/Special Scools