Representative Adelstein asked if the Governor's Office had considered subcontracting the labor to assemble the boxes etc. Ms. Bowman said that DOC staff was being used at this time and it is the lease expensive utilization of employees.

Senator Duxbury asked if the nurses who visit the homes of the families have certain qualifications. Ms. Bowman said they are Registered Nurses.

Representative Richter asked why the Welcome Packets are not distributed at the hospital at the time of birth. Ms. Bowman said the birth and the information received at the hospital are particularly overwhelming and to add to that would not be expedient.

Senator Kleven asked when the Welcome Packets are received by the parents. Ms. Bowman said when the birth certificates are registered, which is usually around one month after birth.

Representative Richter asked what the Early Screening Program entailed. Ms. Bowman said it would include developmental delays and disabilities.

Representative Klaudt asked if the screenings are similar to those performed mandatorily at the schools when children enter the education system. Ms. Bowman said they would not duplicate the screenings already in place. The program targets children from birth to age three.

Representative Clark asked what the television programs entailed. Ms. Bowman stated that the programs would be six week series and would first target parents and grandparents and then daycare providers.

Representative Klaudt asked why the additional five FTEs were needed when the program was already active. Ms. Bowman said there are portions of the program that have not been put in place yet.

Department of Health

Health Promotions
                
Ms. Doneen Hollingsworth, Secretary, Department of Health, approached the committee and explained the Governor's diabetes screening project.

Representative Richter stated that he spoke to two physicians who said the tests would produce 30 to 40 percent inaccurate positive results because there would be no regulation during testing. Ms. Hollingsworth said that 'bedside' testing is now very common and accurate. The proposed screening

project would produce not one false positive result.

Representative Clark asked who was training those who administer the test. Ms. Hollingsworth said registered health professionals will administer the test, those who already have prior experience.

Senator Kleven asked if there is an age limit. Ms. Hollingsworth said the test is a Type II Diabetes test and the targeted age group will be those more than 25 years of age, but the screening will be administered to whomever wants it. Those younger than 18 will need an adult present to be tested.

Representative Richter asked why the $500,000 was needed if the project was already in its final stages. Ms. Hollingsworth said that most of the funds would be used for wages.

Representative Klaudt stated that there is already massive testing transpiring on the Indian reservations and at senior citizen centers. He asked why the Governor feels this program will receive any greater response than those already in place. Ms. Hollingsworth said the committee should trust her. The screening will be a social event where many will feel compelled to gather and be tested. She feels the test will be very successful in reaching those who have not been screened in the past.

Department of Agriculture

Mr. Larry Gabriel, Secretary, Department of Agriculture, approached the committee and explained the need for an additional FTE for the Division of Agricultural Development. Mr. Gabriel stated that the fee bills have generated $196,803 in other funds and the Department would like to utilize those funds. $69,500 would be used for the additional FTE, $110,000 for research into weed control of Canadian Thistle and Leafy Spurge, and $17,303 for support of a wild land fire coordinator.

Senator Putnam asked if the fee bills contained emergency clauses for funds to be utilized prior to July 1. Mr. Gabriel said they did not, but the Department has the ability to fund the request until the funds are received.

Governor's Office of Economic Development

REDI Fund Loan Program    

Ms. Marty Davis, Director of Administration, approached the committee. Ms. Davis explained the REDI Fund Loan Program and its recommended budget.

Representative Clark asked how many loans were provided within the budget. Ms. Davis said the budget was for approximately 65 loans.

Representative Clark asked what the amount of the contract with Bank West is. Ms. Davis said it

was $78,000 in FY2000.

Department of Social Services

Field Management            

Mr. Ellenbecker, Secretary, Department of Social Services, approached the committee. He explained the need for an additional five FTEs for the contract with the tribes for child welfare services.

Senator Drake stated that the Department has had a history of a multitude of vacant FTE positions. He asked why there was a need for additional FTE positions when the Department has so many vacant FTE positions open for utilization. Mr. Ellenbecker said the vacancies are a result of high turnover in social workers and the absence of caseloads to warrant the hiring of additional caseworkers.

South Dakota Retirement System

Actuarial Contract

Mr. Al Asher, Chairman, SD Retirement System (SDRS), approached the committee. He addressed the issue of the contract with Paul Schrader, actuary.

Representative Richter asked what the $310,000 contract with Mr. Schrader entails. Mr. Asher stated that he performs an annual evaluation, consults with the staff when retirees have questions they cannot answer, determines what is appropriate for planning and determines the needs for long- term goals and liabilities. Mr. Asher said that Mr. Schrader has been the actuary for SDRS since 1974.

Representative Richter asked if a Request For Proposal (RFP) had ever been let to determine if Mr. Schrader's contractual service fees are competitive. Mr. Asher said the RFP would provide bids for the evaluation part of the process, but SDRS could not replace the relationship that Mr. Schrader has with SDRS from his years of familiarity with SDRS.
Senator Drake asked if Mr. Schrader was responsible for any other retirement system in the nation. Mr. Asher stated that Mr. Schrader is employed by a firm, but he spends his time primarily on SDRS and is semi-retired.

Senator Drake asked how many hours Mr. Schrader spends on SDRS. Mr. Asher said Mr. Schrader works 1200-1500 hours per year for SDRS.

Representative Richter asked who would be employed by SDRS when Mr. Schrader did fully retire. Mr. Asher said SDRS has made no plans to find a replacement and to do so will be a great undertaking.

Department of Human Services

Adjustment Training Centers

Mr. John Jones, Secretary, Department of Human Services, approached the committee and explained the salary percentage increase for Adjustment Training Centers (ATC) and other facilities associated with mental health issues.

Senator Drake asked if $80,000 in additional funds would increase the salaries sufficiently. Mr. Jones said that it would raise the percentage from .73 percent to .8 percent.

Senator Koskan asked who would be affected by the salary increases. Mr. Jones said there are 19
ATCs, 11 community health centers, 50 alcohol and drug abuse centers, and four independent living centers. He said each of them have the same employee salary issue. With the increase, only the alcohol and drug abuse centers would not be affected.

Representative Adelstein asked if there was a federal fund match on the ATCs. Mr. Jones said no.

Senator Drake asked if the Department is going to draft amendments for the federal fund awards. Mr. Jones said the Department is working on amendments with the Bureau of Finance and Management.

Senator Koskan asked how often the Department rebases its salaries. Mr. Jones said every four years. To do it more often would be too labor intensive and the increase for the cost of living the employees receive in the years in between is satisfactory.

Mental Health

Representative Richter stated that citizens were questioning the withdrawal of funds from the South Dakota Chapter of the National Alliance for the Mentally Ill (NAMI). Mr. Jones stated that the withdrawal has been over a three-year period and that if the Department can utilize their services they do so. Mr. Jones said that the Protective and Advocacy Services provided by the state are sufficient and satisfy the federal mandate for advocacy services that must be provided by the state.

Mr. Steven Pirner, Secretary, Department of Natural Resources approached the committee and explained the Brohm Mine issue.