75th Legislative Session -- 2000

Committee: House Appropriations

                                            P - Present
                                            E - Excused
                                            A - Absent

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

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Co-Chair Richter

DEPARTMENT OF REVENUE

Mr. Mark Zickrick, LRC, staffed the committee.

Mr. Gary Viken, Secretary. Department of Revenue, discussed the FY2001 budget. He said the recommended budget did not have an increase of FTE. The $72,922 increase in contractural services includes $49,200 for BIT services and $23,722 for the new Bureau of Personnel Payroll System (Document #1).

Secretary Viken reported to the committee the success of the South Dakota Tax Amnesty Program. He said the fiscal impact produced $502,000 and over 50 vendors had signed up to get a license and they are continuing to pay sales tax.

The focus of Secretary Viken's presentation was on taxing of internet sales. He reported that the Advisory Commission on Electronic Commerce, of which he is a participant, has been dealing with proposals for on-line sales taxation.

Secretary Viken spoke briefly on inheritance tax. He said total inheritance tax revenue for 1999 was $26,427,000.

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DEPARTMENT OF TOURISM

Mr. Bill Pike, LRC, provided budget information for the Committee (Document #2).

Ms. Patty Van Gerpen, Secretary, Department of Tourism, reviewed the proposed budget.
The budget request of $5,643,520 includes 4 new FTE and an increase of $96,958 in other funds (Document #3).

Secretary Van Gerpen said the mission of Tourism is to market South Dakota and guide the development of the visitor industry resulting in increased visitor expenditures and employment. She reviewed with the committee various brochures that are used for advertising .

The committee was provided with a copy of the Governor's Conference on Tourism Report (Document #4).

The committee recessed at 9:40 and reconvened at 10:00.

LEGISLATIVE AUDIT

Mr. Dale Bertsch, LRC, provided budget information for the Committee (Document #5)

Mr. Marty Guindon, Interim Administrator, Legislative Audit, reviewed the FY2000 budget. He explained that the $24,842 requested increase includes the reclassification of two auditors and upgrading two information systems auditors and movement to job worth and an increase in travel (Document #6).

The meeting was recessed from 10:30 a.m. and reconvened at 11:00 a.m.

Co-Chair Putnam presiding.

INVESTMENT COUNCIL

Mr. Dale Bertsch, LRC, provided the committee with budget information (Document #7).

Mr. Steve Meyers, State Investment Officer, introduced members of his staff that would be presenting the budget information.

Ms. Tammy Otten, Senior Investment Officer, and Mr. Matt Clark, Senior Investment Officer, reviewed the proposed budget (Document # 8). There is an increase in personal services of $124,756 and operating expenses of $10,239. Overall the budget increase is 4.15 per cent.The entire budget is comprised of other funds.

Ms. Otten and Mr. Clark gave a presentation of the summary of assets that included a review of the management fees, state fund performance, wealth accumulation, summary of long-term plan with unit cost and potential excess earnings (Document # 9).

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MOTION: ADJOURN

Moved by: Representative Putnam
Seconded by: Representative Wudel
Action: Prevailed by voice vote.

Jeanette Black

Committee Secretary