77th Legislative Session _ 2002

Committee: House Appropriations Sub 1
Tuesday, January 15, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Adelstein
P    Apa
P    Cradduck
P    Duxbury
P    Klaudt
P    Lange
P    Putnam, Vice-Chair
P    Sutton (Duane)
P    Richter, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Richter

DEPARTMENT OF GAME, FISH, AND PARKS

Mr. David Becker, LRC, provided budget information for the committee (Document #1)

Mr. John Cooper, Secretary, Game, Fish, and Parks presented a brief overview of the issues pertaining to the department.

Governor's FY 2003 Recommendation: $6,301,526 General, $10,466,104 Federal,
$35,473,642 Other; $52,241,272 Total. ( 562.5 FTE)

Mr. Cooper informed the committee that 6.7 million tourists were in South Dakota parks last year. The increased attendance is due to the addition of 22 lease areas on the Missouri River. Presently the Corps of Engineers is being sued by Native American sources who say these lands belong to them as a result of previous treaties. A final decision on land acquisition is due on February 8, 2002. The Corps of Engineers doesn't have funds for personnel to maintain recreation sites.

Mr. Cooper said that South Dakota hosts 70,000 non-resident pheasant hunters each year. This

generates $80,000,000 for the state. Hosting so many hunters brings trespassing and poaching issues.

Representative Richter stated that hosting 70,000 out-of-state hunters may create decreased opportunities for residents hunters. Representative Richter asked if the state could see a limit of hunting licenses in the future. Mr. Cooper said that the cost of South Dakota licenses could be increased to offset the decrease in non-resident licenses.

Mr. Cooper reported that Trapping and Nuisance Control to counties received a line item $300,000 federal funding. This is a one year appropriation which is filtered down from the federal government to the agency and then to the states.

Representative Klaudt asked about the intention with animal damage control. Mr. Cooper responded that the intention is to fill two vacancies and respond to airborne hunting issues.

Representative Sutton asked about the pine beetle issue on lands. Mr. Cooper responded that the department is working with the federal government. In the last two years, the pine beetle infestation has tripled. The land is in court challenges.

WILDLIFE FUND_This is funded by licenses and funds received from permit sales. The department keeps $15,000,000 in fund to offset a bad year of hunting. These license monies cannot be used in communities for road maintenance. The monies can only be used on direct wildlife management.

The meeting recessed at 9:55AM

The meeting reconvened at 10:17AM

Mr. Ken Anderson, Director of Administration informed the committee of the Conservation Reserve Enhancement Program. $3,000,000 for FY2003_this may be high due to declining bond payments. The Administration budget includes: Administration Engineering, and Licensing programs, 1.5 FTE decrease, and $440,500 increase in operating expenses_primarily for automated licensing system.

CUSTER STATE PARK

Mr. Rollie Noem, Director of Custer State Park (Document #2) informed the committee that the bison sales are down. Starting in the year 2000, the revenue picture has not been good. There was extensive storm damage in April, 2000. The trustee clean-up program (November through April) has been working well. Reactivation of trustee program started in September, 2001 through August, 2002 funded by FEMA funds. The trustees work makes a healthy forest system.

Senator Duxbury asked about any timber sales in Custer State Park. Mr. Noem said there is a Timber Harvest Program: 1. timber sales and logging, 2. thinning of forests by inmates, and
3. prescribed burning. Mr. Noem reiterated that the inmate program is used in many ways in the park

and it is working well.

Mr. Noem informed the committee about weed control in Custer State Park. The three main aspects include: 1. Park spray crews, 2. Continued contract with Custer County Weed Control, 3. Inmates utilized in walk-in application.

Senator Apa asked if the Forest Service controls weeds on adjoining land to Custer State Park.. Mr. Noem replied that Custer State Park has a good relationship with the Forest Service. They would say their weed control program needs improvement.

Mr. Noem commented on the bison sales. This fall 420 bison were at auction. The price was similar to one year ago.

The Custer State Park Operations Budget Comparison shows for FY2002 Budget-$4,066,879, FY2003 Request-$3,741,999, FY2003 Reduction $324,888.

Custer State Park Capital Development Program_In recent years, record park use and buffalo sale prices allowed for the reduction and eventual elimination of General Funds in the Capital Development Program budget. With the severe drop in the buffalo market, general fund support is once again requested to help address the park's preventive maintenance needs. Federal funding programs would be utilized to leverage these funds to the biggest advantage for the state.
FY 2003 Request: General Funds-$90,000, Other Funds-$350,000, Federal Funds-$230,000,
Total-$670,000

FY 2003 Request: 1. $180,000 for upgrade of sewer system at Center Lake complex, 2. $175,000 for upgrade of existing trail systems that are deteriorating from heavy use. This is funded 80/20 cost share between Federal Funds and Other Funds, 3. $315,000 for continued electrical and structural improvements to historic park lodges-Other Funds.

DIVISION OF PARKS AND RECREATION

Mr. Doug Hofer, Director of Parks and Recreation (Document #3 and # 4) reported for the FY2003 budget an increase of 8.2 FTE and $171,000 increase in personal services for Missouri River recreation areas, and $176,000 increase in operating expenses.

Parks and Recreation_Development/Improvement shows a $827,000 increase in operating expenses. Parks and Recreation Fund shows revenue sources from park entrance licenses, camping permits, service fees, and motor boat fuel funds. Funds are used to develop, improve, operate and maintain the park system and improve boating facilities. Balance at end of FY2001-$1,200,000


Snowmobile Trails: SDCL 41-19-1 provides for continuous appropriation for this budget. The fund balance=$793,000 at the end of FY2001.

Mr. Doug Hansen, Director of Wildlife, informed the committee that the funding in this program is annually appropriated in SDCL 41-2-35. There is a 1.8 FTE increase, a $164,000 increase in personal services, and $1,100,000 increase in operating expenses. Game, Fish, and Parks fund_$20,600,000 balance at the end of FY2001. The Wildlife Development and Improvement shows a $2,500,000 decrease.

MOTION:     ADJOURN

Moved by:    Duxbury
Second by:    Sutton (Duane)
Action:    Prevailed by voice vote.

Carol Carney

____________________________

Committee Secretary
Mitch Richter, Chair


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