74th Legislative Session -- 1999

Committee: Joint Appropriations Subcommittee #2

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Sen. Dennert
P      Rep. Burg
P      Sen. Lange
P      Rep. Klaudt
P      Sen. Bogue
P      Sen. Hainje
P      Sen. Kleven
P      Rep. Derby
P      Rep. Putnam, Vice-Chair
P      Sen. Frederick, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Frederick

South Dakota Department of Labor

Mr. Bill Pike, LRC, presented the committee with budget information ( Document #1).

Mr. Craig Johnson, Secretary, Department of Labor, presented the committee with a budget summary ( Document #2). The Secretary provided an overview of the department and noted 98% of its funds are federal funds. The department is requesting an increase in federal fund authority of $800,000 in the Secretariat division to administer a new federal grant, School-to-Work. The Secretary explained the vision and criteria of the grant program.

Senator Frederick inquired whether the department was aware of the Annenberg Rural Challenge Grant. It is aware of the program but is not involved in it. Representative Derby asked whether the School-to-Work grant program sunsets in the year 2001. It does; South Dakota is one of the last states to be funded. The Department has received School-to-Work planning grants for several years which have involved 149 schools. All South Dakota schools will be eligible to participate in the new grant and will follow a competitive request-for-proposal process to apply for money. No matching state funds are required for this grant program.

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Senator Bogue asked about the mechanisms for maintaining the program once the federal funds are depleted. The Secretary responded the schools must decide how to keep the process going. The schools are aware there is limited funding.

Representative Klaudt noted the average annual salary in the Secretariat division is $32,000 per employee. Mr. Dick Flemmer, Finance Officer, Department of Labor, noted the numerous technical positions located in that division.

Senator Bogue inquired into the current $1 million expenditure authority in the Secretariat. It came from previous programs now defunct. Senator Lange asked if the federal government provides oversight for the portion of the Department's budget is federally funded. It does.

Secretary Johnson reported on the Division of Labor and Management. Budgets for Administrative Services, Unemployment Insurance Service, and Field Operations Service programs within this division are unchanged, but the Department will provide a breakdown of different positions in the Administrative Services program. There are no budget changes to report for the State Labor Law Administration program.

MOTION:      ADJOURN

Moved by:      Representative Klaudt
Second by:      Representative Putnam
Action:      Prevailed by voice vote.

Deborah Rumrill

Committee Secretary