75th Legislative Session -- 2000

Committee: House Appropriations

Wednesday, January 24, 2000

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Cerny
P      Burg
P      Sutton (Daniel)
P      Derby
P      Clark
P      Pummel
P      Klaudt
P      Wudel
P      Putnam, Vice-Chair
P      Richter, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Richter

MOTION To introduce the following House Bills on behalf of the Governor:

An Act to transfer funds from the special racing revolving fund and the South Dakota-bred racing fund to the Department of Education for certain technology enhancement programs and to make an appropriation therefor.

An Act to establish the tobacco settlement fund and authorize certain expenditures from the fund.

Moved by: Representative Putnam
Seconded by : Representative Cerny
Action: Prevailed by roll call vote. (10-0)

Voting Yes: Cerny, Burg, Sutton (Daniel), Clark, Derby, Pummel, Klaudt, Wudel, Putnam, Richter

BUREAU OF INFORMATION AND TELECOMMUNICATIONS

Ms. Annie Mertz, LRC provided budget information for the committee (Document #1).

Mr. Otto Doll, Commissioner of Bureau of Information and Telecommunications reviewed the budget request and pointed out that the total Y2K expenditures were $5.9 million over 4 years.



Data Centers- Overall decrease of $162,945 in other funds.

Development- The increase of $285,840 in other funds includes the addition of 3 FTE from the Data Center as well as funding for an FTE that was transferred from State Radio.

Telecommunications - Overall decrease of $120,277. Commissioner Doll told the committee they were requesting 5 new FTE for K-12 Videoconferencing and 1 FTE for network design. He said that it was important that they prepare their existing infrastructure to get ready for newer technology.

Representative Putnam requested that in next year's budget presentation the Department include VTEL statistics should be included in the performance indicators.

South Dakota Public Broadcasting - Overall increase of $168,262. Included in the budget
is funding for tower improvements.

State Radio - Overall increase $7,605,811 - $7 million of this increase is a federal grant to replace the state radio system.

Commissioner Doll informed the committee that Public Broadcast has to be digital ready by May, 2003 at the cost of approximately $36 million. Representative Derby requested that the committee be provided with a breakdown of the cost of going digital.

The committee recessed at 9:00 a.m. and reconvened at 9:15 a.m.

HEALTH DEPARTMENT

Mr. Bill Pike, LRC, provided budget information for the committee (Document #3).

Ms. Doneen Hollingsworth, Secretary, Department of Health, presented the committee with the FY2001 Budget Recommendation and Overview Materials (Document #4).

Secretary Hollingsworth reviewed the accomplishments of the Health Department stressing the success of the immunization initiative and the screening for breast and cervical cancer.

Major increases in the budget include 9 FTE and $415,985 in Community Health Services. This is for the new Prenatal and Newborn Home Visitation Program as part of the Governor's Early Childhood Initiative. The Office of Disease Prevention to provide chicken pox vaccination for the state's children is requesting $428,455.

Vice-chairman Putnam chairing.

Other funding requested is $461,087 for the Bright Start Home Visitation program which is designed to help pregnant women and newborn improve their health or receiving home visits to promote a child's health and development. There will be two pilot sites, one in Minnehaha County and the other in Pennington County.


DEPARTMENT OF ENVIRONMENT & NATURAL RESOURCES

Mr. David Becker, LRC, provided budget information for the committee (Document #6).

In prepared remarks, Secretary Nettie Myers, reviewed the budget request for the department (Document #7).

Secretary Myers said the budget request contains two special funds that have existed but have never been included in the budget. The first is the Regulated Substance Response Fund that is budgeted at $1.75 million and the second is the Environmental Livestock Cleanup Fund budgeted at $765,000.

Secretary Myers updated the committee on the cleanup of acidic waters at Brohm Mining Company. She said that DENR has successfully treated over 40 million gallons but there is still nearly 130 million gallons of acidic water in storage.

The new Cleanup South Dakota Project is a high priority with DENR. This project will be the removal of underground storage tanks from abandoned sites across the state. Funds for this project would come from the Petroleum Compensation Fund. Other cleanups include old batteries and tires that are lying around.

Total budget recommendation is $14,674,226 which is an increase of $2,535,771.

A motion was made by Representative Cerny, seconded by Representative Sutton that the minutes of January 19, 2000 be approved as submitted. Motion prevailed on a voice vote.

A motion was made by Representative Derby, seconded by Representative Wudel that the minutes of January 18, 2000 be approved as submitted. Motion prevailed on a voice vote.

The meeting recessed at 11:50 a.m. and reconvened at 4:15 p.m.

Vice-chair Derby now presiding.

STATE TREASURER

Mr. Dale Bertsch, LRC, provided budget information for the committee (Document #8).

Mr. Richard Butler, State Trearurer, told the committee his job responsibility was management of the state treasury and overseeing the unclaimed property division.

Ms. Sandy Tillman, Cash Manager, and Karen Lester, Deputy State Treasurer, gave an overview of the treasury management (Document #9). Ms. Tillman reported that at the present time the First Premier Bank of Sioux Falls is the state's primary bank. She reported on ways they have improved the flow of cash both into and out of the treasury which has resulted in a savings to taxpayers of South Dakota. They are working to move money to the treasury faster from Unified Judicial Systems local accounts but have met with resistance.


A brief committee discussion followed and it was suggested that an Issue Memorandum from LRC to the UJS be prepared to request the transfer of money quicker.

In the budget summary Ms. Lester reported the decrease of $15,850 in capital assets represented the purchase of a check imager. The increase of $15,638 in contractual services is to cover the increased banking fees as well as increased courier charges.

Unclaimed Property - Mr. Warren Foss, Administrator, reported that the number one goal of his division is return unclaimed property to the owner. He said in FY1999 they had returned $911,398 (Document #10).

The requested budget of $1,391,401 all comes from other fund authority.



MOTION:      ADJOURN

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



Jeanette Black

_________________________________

Committee Secretary
Mitch Richter, Chair


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