P - Present
E - Excused
A - Absent
Roll Call
P Adelstein
P Apa
P Cradduck
P Duxbury
E 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 LABOR
Ms. Annie Mertz, LRC, provided budget information for the committee (Document #1).
Mr. Craig Johnson, Secretary, Department of Labor presented an overview summary for the FY2003
budget request (Document #2) assisted by Mr. Dick Flemmer, Finance Officer.
The Department of Labor is responsible for administering state labor laws, the delivery of job
training and job placement programs, the collection of unemployment insurance taxes and the
payment of unemployment insurance benefits.
The department's primary source of funds are federal grants and contracts which provide 98 percent
of the agency's revenues. The department also receives workers' compensation insurance fees and
general funds for the operations of the Labor and Management Division.
For FY2003 the department is requesting 367 FTE and a budget of $34,502,609. This represents an
increase of $1,415,756 in expenditure authority and no change in FTE's from the FY2002 budget.
Major activities of the department are: collection and publication of state labor force statistics, to
provide a statewide network of 18 One-Stop Career Center offices with numerous itinerant service
locations to provide job placement services, administer the Workforce Investment Act to provide job
training services to adults and youth, collection of unemployment insurance taxes and payment of
unemployment compensation benefits to eligible unemployed individuals; and to administer the
state's labor laws to include: public sector collective bargaining, state wage and hour laws, child
labor laws and adjudication of the state workers' compensation laws.
The Department of Labor has two divisions: The Division of the Secretariat and the Division of
Labor and Management. The Division of Secretariat administers and delivers federal grant
employment and training programs and includes central support staff for the department. The
division of Labor and Management administers the state's labor laws.
The Secretariat Administration's recommended FY2003 budget is a $200,000 increase in General
Funds and a $1,200,000 increase in Federal Funds.
The Department of Labor is requesting a transfer in from the Department of Education and Cultural
Affairs for the Adult Education ABE/GED grant. DECA approached DOL to administer the Adult
Education and Literacy program, because they felt it was a better fit with the alternative high school
programs and short-term job training. The Department of Labor in six other states currently
administer the Adult Education and Literacy program. This seems to be a trend since Adult
Education is Title II of the Workforce Investment Act.
Representative Lange asked for a brief historical sense of the Department of Labor. Mr. Johnson and
Mr. Flemmer gave a brief statement.
Mr. Johnson referred to the Administrative Services inflationary increase of $15,000 in federal funds
for office supplies.
Representative Richter asked if the Department of Labor has vehicles that are federally funded. Mr.
Johnson said they use the state motor pool.
There is no change in the FY2003 recommended budget for Unemployment Insurance and Field
Operations.
Senator Cradduck asked if there is no increase in the budget for Field Operations, how will the
department handle the increase in lay-offs and increase in unemployment. Mr. Johnson replied that
there will be a reallocation of resources.
Senator Apa asked about the reduction in FTE's and the total number of FTE's. Mr. Johnson said
that the reduction was due to telephone claims. The total number of FTE's is 194.
The FY2003 recommended budget for State Labor Law Administration is an inflationary increase
in other funds of $756 for office supplies.
Representative Richter asked about the backlog in hearings for injury claims. Mr. James Marsh,
Director of the Division of Labor and Management. said that the hearings are current.
Representative Richter asked about the time frame from injury to filing a claim. Mr. Marsh said that
from the date of injury to report of claim takes approximately nine months, and the final decision
is made in approximately eighteen months.
Senator Duxbury asked about the connection between his department and Job Corps. Mr. Johnson
said that his department recruits for Job Corps and is responsible for job placement after the
individuals have worked with Job Corps.
Senator Putnam asked about the Adult Education ABE/GED grant. Ms. Marcia Hess, Director of
Adult Education and GED Testing said that in six other states the Department of Labor administers
the Adult Education and Literacy program (Document #3 and Document #4). Performance measures
were set up at the onset of the three year grant cycle. New performance measures will be established
for the new three year grants. Each program is to meet or exceed the state performance measures.
The measures are percentages of students passing academic levels. The data is aggregated and
performance is established for the State Reports to the United States Department of Education. The
goals for the future are to have accurate data collection, uniformly well-trained AEL staff in the field
to work with our students, a well coordinated and smooth functioning system which educates adults
and moves them on to post secondary education or vocational training. Mr. Mike Ryan, Director,
Workforce Development Council said that the department negotiates the number of people to be
served. They negotiate on the demographics of the state.
Representative Richter asked for a breakdown on contracts with the Adult Education program.
Ms. Hess told the committee that there were 1900 GED certificates given from January 1 to
December 31, 2001. The following age groups received GED certificates: 16-18 year-olds(630), 19-
24(720), 25-44(405), and 45 plus(approximately 145). There is an average of 1500 GED's presented
each year.
Senator Apa asked at what grade level are those students who take and pass the GED. Ms. Hess said
that the 40 percent of the graduating seniors from traditional high schools would not pass the GED.
Ms. Hess informed the committee that her office does a follow-up on GED recipients. She said that
this group performs better in vocational schools.
Senator Cradduck asked if the Department of Labor used the same curriculum as the Department of
Education and Cultural Affairs. Mr. Johnson said that his department will not develop curriculum.
The meeting recessed at 9:05AM. The meeting reconvened at 9:30AM
SCHOOL AND PUBLIC LANDS COMMISSIONER
Mr. Reed Holwegner, LRC, provided budget information for the committee (Document #5).
Mr. Curt Johnson, Commissioner, School and Public Lands presented FY2003 recommended budget
information(Document #6). The mission statement reads as follows: to ensure efficient management
of school and endowment lands and trust funds owned and administered by the State of South
Dakota for the support and maintenance of the public schools and the various state institutions for
which the lands have been granted.
The Commissioner of School and Public Lands is a constitutional officer who manages and
maintains the state's public lands for the benefit of public schools and various state institutions. The
office leases acres and mineral rights, and it invests the money received to be later apportioned to
the various school districts and endowed institutions in the state.
The FY2003 Governor's total recommended budget is $646,781. The funding sources include:
general fund ($462,281), federal funds ($19,500), and other funds ($165,000). The total FY2003
total budget breakdown is as follows: personal services ($351,347),
travel expense ($18,600), contractual services ($206,174), supplies and materials ($68,660), and
capital outlay ($2,000). The FY2003 general budget breakdown is as follows: personal services
($351,347), travel expense ($15,600), contractual services ($77,674), supplies and materials
($15,660), and capital outlay ($2,000). The FY2003 weed budget breakdown is the following: travel
expenses ($3,000), contractual services ($109,000), and supplies and materials ($53,000).
Senator Putnam asked about weed control history. Mr. Johnson said that there used to be a line item
of $30,000 for weed control. Money was received from chemical sales. Ranchers worked to rid the
land of weeds. They used sheep as weed control. Today weevils are used to control leafy spurge.
Senator Putnam asked if the Department of Agriculture helps the department with programs. Mr.
Johnson said that his department works with the Department of Agriculture with enforcement into
compliance of weed control. The Game, Fish, and Parks Department controls noxious weeds.
Representative Richter asked if the office works with bordering states for weed control. Mr. Johnson
said that the office looks to work on river projects with them.
Senator Cradduck asked if the department works with tribal lands officials and do the tribes receive
federal funding. Mr. Johnson said that his department has been working with the tribal
representative from Bennett County, and he assumed that the tribes receive federal funding for weed
control.
Senator Putnam asked if inmate labor was used for weed control on land belonging to School and
Public Lands. Mr. Johnson said the inmates would have to be certified in chemical application. An
attempt has been made with this idea, but it didn't work. out. Helicopter application would have
been more appropriate.
Representative Sutton asked about the pine beetle infestation problem. Mr. Johnson said that his
office did some thinning and clean-up in Spearfish.
Senator Apa asked about the number of acres of land which is lost to noxious weedsl. Mr. Johnson
said that it is a high figure. The control of leafy spurge is going well.
MOTION:
ADJOURN
Moved by: Sutton (Duane)
Second by: Lange
Action: Prevailed by voice vote.
Carol Carney
____________________________
Committee SecretaryMitch Richter, Chair
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