LEGISLATIVE RESEARCH COUNCIL BUDGET

Dale Bertsch, LRC provided budget information for the committee (Document #2)

Mr. Jim Fry, Director of The Legislative Research Council reported to the committee.

Legislative Operations_This program funds all activities of the Legislature_including Legislator expenses during session and interim, the expenses of the Legislative session and the interim and the operation of the Legislative Research Council. The overall general fund budget is increased by $156,868. The Legislative Contingency Fund shows no change. The Legislative Employee (including Legislative Audit) 3 per cent salary policy.

Mr. Jim Fry informed the committee that $116,000 will be spent on a two- year lease for new laptop computers to be made available to the legislators. Computers may be available for purchase by legislators at its residual value. This will be arranged with Gateway later on in the year.

Senator Apa informed the committee that laptop computers could be converted to Braille. There are organizations that would take used laptop computers.

SOUTH DAKOTA LOTTERY

Dale Bertsch, LRC provided budget information for the committee (Document #3)

Mr. Clint Harris, Director of South Dakota Lottery presented information assisted by Sherry Lauseng. (Document #4).

Instant and On-Line Operations -No significant changes in this budget. The one change is the shift of $20,000 to travel (increased billings) from prizes in contractual services_reduction in instant high tier prizes. The large item in contractual services is for the payment of prizes.

The budget is continuously appropriated. Instant and On-Line contractual services. Computer related-$2,145,000; advertising-$707,315; rent-$136,000; telecommunications $64,293; commissions-$2,066,277; Prizes-$19,549,182; Other-$444,601; Total $25,112,668.

Mr. Harris stated when speaking about the lotto games that a minimum of 50 per cent of the state's share of net proceeds goes to fund state projects. A maximum of 50 per cent of the state's share of net proceeds goes to meet Lottery operating costs. Since lotto sales began in November, 1990 through FY01: Total sales_$150.5 million, Total prizes $74.7 million, Total retailer commissions and bonuses $8.3 million, Total proceeds for state projects $36.1 million.

Video Net Machine Income: Year to Date (26 Weeks) FY2001 - $103.09 M; FY2000 - $96.92 M. This is 6.37 per cent ahead of last year.

Establishment Numbers: At the end of 26 Weeks FY2002 - 1,410; FY2001 - 1,380. This shows 2.17 per cent ahead of the same point last year.

Terminal Numbers: At the end of 26 Weeks FY2002 - 8,058; FY2001 - 7,886. This shows 2.18 per cent ahead of the same point last year.

Senator Putnam asked Mr. Harris to update the committee on the Gaming Commission. Mr. Harris responded that he is responsible to a seven member commission appointed by the Governor. These individuals are from a wide spectrum of careers. Quarterly reports of financial statement are made available.