Committee: Joint Appropriations
Mr. Dale Bertch, LRC, staffed the meeting.
HB 1179:
appropriate money for the expenses of the legislative, judicial, and
executive departments of the state, certain officers, boards, and departments, for
support and maintenance of the educational, charitable, and penal institutions, the
South Dakota Veterans' Home, for maintenance of the state capitol, and for support
and maintenance of the state guard.
MOTION:
AMEND HB 1179
"
Section 29. The state treasurer shall transfer twelve million dollars ($12,000,000) from the
employer's investment in South Dakota's future fund created in
§
61-5-24.2 to the property tax
reduction fund created in
§
10-13-44.
"
"
Section 29. The state treasurer shall transfer five hundred thousand dollars ($500,000) from the
banking special revenue fund created in
§
51A-2-29 to the property tax reduction fund created in
§
10-
13-44.
"
"
Section 29. The Board of Regents shall reduce nonfaculty FTEs appropriated to the universities
in this Act by one hundred. It is the intent of the Legislature that these reductions in personal services
and operating expenses be used to partially offset tuition increases for the South Dakota unified system
of higher education governed by the board.
"
"
Section 29. The commissioner of the Bureau of Finance and Management shall reduce the
operating expenses line item for each program appropriated in this Act by an amount that represents
five percent of the estimated fiscal year 2000 travel expenses for that program. Any reduction in the
general fund appropriation pursuant to this section shall be transferred to the property tax reduction
fund created in
§
10-13-44.
"
"
Section 29. The commissioner of the Bureau of Finance and Management shall reduce the
personal services and operating expenses line items for each program appropriated in this Act by an
amount that represents one-half of one percent. Any reduction in the general fund appropriation
pursuant to this section shall be transferred to the property tax reduction fund created in
§
10-13-44.
"
MOTION:
Table amendment p-1179f.
Moved by:
Senator Dennert
Second by:
Senator Lange
Action:
Failed by roll call vote.
(3-7-0-0)
Voting yes:
Dennert, Duxbury, Lange
Voting no:
Benson, Bogue, Hainje, Kleven, Staggers, Drake, Frederick
MOTION:
AMEND HB 1179
"
Section 29. The Board of Regents shall reduce nonfaculty FTEs appropriated to the universities
in this Act by ninety-nine. It is the intent of the Legislature that these reductions in personal services
and operating expenses be used to partially offset tuition increases for the South Dakota unified system
of higher education governed by the board.
"
"911 Training
Personal Services $0 $0 $72,058
Operating Expenses $0 $0 $65,700
Total $0 $0 $137,758
F.T.E. 2.0
"
.
Ms. Annie Mertz, LRC, presented the committee with a summary of approved amendments to
HB1179 through March 1, 1999 ( Document #21). Discussion ensued on the passage of amendments.
Presentation of Revenue Estimates
Mr. Bertch presented the committee with revenue estimate information ( Document #22). Mr. Bertch explained his estimating process and presented sales tax collections history along with other economic
factors. He noted the status of the national economy, the rate of unemployment in South Dakota, and
the health of the agriculture sector may cause adjustments to the formula. For FY00 Mr. Bertch
predicts a 4.52% increase in sales tax revenues over the FY99 estimate. He noted sales tax revenues
can be impacted when legislation is passed.
Mr. Bertch reviewed the figures for the contractor's excise tax and indicated the passage of the
highway bill during the 1999 legislative session could change the revenue estimates for this tax. Mr.
Bertch further overviewed revenue estimates for other taxes and for licenses, permits, and fees. Mr.
Bertch projects total FY00 state revenues to be $752,324,292. This projection represents a 2.3%
increase from FY99.
Mr. Jason Dilges, Senior Fiscal Analyst, Bureau of Finance and Management, presented the
committee with revenue estimate information ( Document #23). Mr. Dilges discussed the process of
constructing the revenue estimate and presented an overview of the United States economy. He
presented the committee with information regarding the economic forecasts for the national and South
Dakota economies. Mr. Dilges compared United States versus South Dakota trends in nonfarm
employment growth, nonfarm wage rate growth, total personal income growth, the change in the
Consumer Price Index, the unemployment rate, and housing starts. Discussion followed regarding
increasing the labor force in South Dakota.
Mr. Dilges noted South Dakota is behind on tax collection estimates for the first seven months of
FY99. For FY00 the Bureau of Finance and Management projects a 4.71% growth in sales tax
revenues over estimated FY99 collections. Mr. Dilges answered committee questions on sales tax
revenues and the impact of Internet sales. Mr. Dilges proceeded to present revenue projections for
other state taxes.
The Bureau of Finance and Management's estimate for total state revenues collected in FY00 is
$756,395,825. This projection reflects a 2.96% increase between revised FY99 and FY00.
Chair Richter noted the Appropriations Committee will meet in joint session on Wednesday, February
3, 1999, to hear Department of Education and Cultural Affairs amendments and to adopt a revenue
estimate. Mr. Bertch presented the committee with an updated summary of approved amendments to
HB1179 through March 2, 1999 ( Document #24).
MOTION:
ADJOURN
Moved by:
Representative Klaudt
Second by:
Representative Wudel
Action:
Prevailed by voice vote.
Deborah Rumrill