Friends,
Here is a comprehensive recap of the 2010 South Dakota Legislative Session! In this summary, I have focused on the budget and also provided an overview of some of the most significant legislation that passed during the 2010 session. I hope you enjoy this comprehensive update!
Fiscal Year 2011 Budget
Senate Bill 196 (General Appropriations Bill)
The 2011 general appropriations budget that passed included a combination of cuts, revenue enhancers and a great deal of discipline in holding down non-mandatory spending increases.
The legislature was able to raise revenue in the 2011 budget by scaling back certain construction tax refunds currently given to large agriculture and business projects. These scale back reforms are expected to garner $14.5 million to the state’s general fund in 2011. These scale backs were structured in a manner that won’t hinder economic development projects that are in a certain price range sweet spot.
The legislature also was able to identify millions of dollars in cuts in order to balance our budget for fiscal year 2011. These were admittedly very difficult decisions to make but ultimately they were necessary in order to place our state in a stable financial position for this year and for fiscal year 2012 which is anticipated to be even more challenging. By making many of these cuts this fiscal year, we were able to not only balance our state government’s checkbook for fiscal year 2011; we were also able to get a head start on reducing our fiscal year 2012 deficit as well. We also able to save the approximately $107 million in reserve money for the next few years and we will undoubtedly need to use it. These cuts were simply the responsible thing for the legislature to do.
Here are some of the noteworthy cuts that were made by the legislature in SB 196:
Board of Regents -The state university system will share $4.2 million of general budget cuts. The Electronic University Consortium will lose $169,000. A doctorate program in physics proposed by the governor won’t be funded, saving $970,000. The Cooperative Extension Service and Agriculture Experiment Station programs will be cut a total of $500,000. Memberships in two regional higher-education organizations will be defunded, saving $200,000. The technology fellows scholarship program will lose $270,000, about one-third of its current funding. The South Dakota School for the Deaf will lose $660,000.
Tobacco money – The state Department of Health will lose $1.5 million of the $5 million it receives for tobacco prevention and cessation programs. The money will be shifted to other purposes.
Courts – The Unified Judicial System will be trimmed $400,000.
State Fair – State funding will be cut $100,000.
Legislative travel – Will be reduced $150,000.
Significant Legislation that Passed During the 2010 Session:
Business
House Bill 1018
HB 1018 expands eligibility for Unemployment Insurance (UI) benefits to part-time workers and workers attending state-approved or WIA-funded training. By expanding benefit eligibility in these two categories, South Dakota will receive $11.7 million to the UI Trust Fund. The additional money will also reduce the amount of taxes and surcharges paid by South Dakota employers. This legislation was critical as it helps restore solvency to the UI Trust Fund.
Corrections
Senate Bill 53
SB 53 establishes an alternate source of funding to provide a permanent Minimum/Parole Unit correctional facility in Rapid City. The state will only have to allocate $1.8 million of general funds to build a facility that is desperately needed in western South Dakota. It has been well documented that 34.8% of the male inmates in the state prison system were sentenced from western South Dakota but only 2.4% of the state’s prison beds are currently located west river. The inmates transitioning back to the Black Hills area desperately need to do so from a facility in Rapid City (not from Sioux Falls or Yankton as is currently the case).
Economic Development
Senate Bill 195 & House Bill 1060
We passed SB 195 and HB 1060; two bills involving tax refunds of large business, agriculture and energy related projects. These bills will help the state of South Dakota recoup some refund money currently given out in sales taxes and contractors excise taxes for specific projects. The legislature ultimately decided on allowing a 45% refund of taxes on large projects that are within the $10-$40 million window (aka-the economic development sweet spot). Also, projects greater than $40 million up to a ceiling of $500 million will receive a 55% refund in taxes. There will be no tax refunds for projects under $10 million and more than $500 million.
There was also a specific exemption given to the wind energy industry as wind energy projects and manufacturing facilities were given an additional break in our final compromise and as a result will be eligible to receive refunds on projects valued over $500 million and won’t be subject to a cap or ceiling.
Homestake Funding
We were able to secure funding through the appropriations budget process in the amount of $5.4 million to help fund the Homestake Deep Underground Science and Engineering Lab (DUSEL) until May 2011. The $5.4 million will cover the operations for the Sanford Laboratory for 6 months. In May 2011, the National Science Board is expected to give final approval to this project. This funding was absolutely critical to future economic development efforts in South Dakota.
Judiciary
Senate Bill 12
Senate Bill 12 is the highly publicized legislation that reforms the sex-offender registry list in South Dakota by creating three “tiers” of lists on the registry. The first “tier” includes a list of offenses where someone on the registry could request to petition off the registry after 10 years. The second “tier” includes a list of offenses where someone on the registry could request to petition off the registry after 25 years. The third “tier” includes a list of offenses (including all offenses where children were the victim) where someone would be on the registry for life. It is important to note that it is NOT a slam dunk that offenders will be automatically off the list. This bill just provides for them a petition process to make their case to get off the list. I believe these are equitable changes to the sex offender registry list.
House Bill 1081
We passed HB 1081 which revises certain court automation surcharges. House Bill 1081 was the number one priority of Chief Justice Gilbertson and the Unified Judicial System this legislative session. This legislation will raise the filing fees that plaintiffs and other persons instituting charges would pay in civil, criminal and small claims actions. What would the increased fees be used for? The Chief Justice and a member of the UJS staff testified in committee that the revenue generated from these fees would be used to purchase a comprehensive electronic software records program. South Dakota lags way behind its neighboring states in the technology used in our judicial system. Currently, the UJS has an antiquated records system that makes it more difficult for all stakeholders in the UJS system to communicate and access records in an efficient manner. The new technology is expected to cost around $11.5 million.
Education
Senate Bill 106
SB 106 is very significant for Sioux Falls because it will provide legislative authorization for the University Center to build on its campus and allow the Sioux Falls School District to buy out the University Center’s present lease of the building space on Southeast Technical Institutes campus. The Sioux Falls School District plans to use this space for its new project based high school. I’m really excited about the prospects of this new school and believe it has enormous potential to change the educational landscape in South Dakota.
House Bill 1248
We passed HB 1248 which revised the state aid to education formula in regards to school districts who receive increasing enrollment money. This was a great bill because it will allow school districts with growing enrollments the ability to receive their money earlier and it also eventually help the state education budget because it will fund education for 13 years instead of funding it at 13 ½ years under the old formula for increasing enrollment districts.
House Bill 1190
HB 1190 establishes alignment between opportunity scholarship requirements and high school graduation requirements. HB 1190 allows a student to be eligible for the opportunity scholarship in South Dakota by substituting career and technical education (CTE) classes approved by the Department of Education in place of the current foreign language requirement. I feel this was a positive step and will be valuable for students in the Sioux Falls area who attend the new Tech Ed Academy opening up this fall.
Health & Human Services/Social Services
House Bill 1231
HB 1231 creates a prescription drug monitoring program in South Dakota. This is significant because it will require physicians and pharmacists in South Dakota to log each filled prescription into a statewide electronic database system. The goal is to prevent individuals from obtaining prescriptions from multiple doctors (aka-doctor shopping), which has been a problem on the rise in the United States. Funding from the program will come from grants and consumer settlement money (not state general funds).
Transportation
Senate Bill 65
SB 65 extends the issuance of a new series of license plates by 5 years. This is significant because it saves approximately $4 million dollars for local governments (counties, cities, and townships). These local government entities are cash strapped and this bill will help them pay for road repairs, snow removal services, spring flooding and other expenses.
2nd Amendment
Senate Bill 89
SB 89 exempts from federal regulation any firearm, firearm accessory, or ammunition manufactured and retained in South Dakota. I was happy to support this pro 2nd amendment/states rights legislation!
