The second meeting of the interim Appropriations Committee was called to order by Co-chair Randy Frederick at 1:05 p.m., January 8, 2001, in LCR 1&2 of the State Capitol, Pierre, South Dakota.

A quorum was determined with the following members answering the roll call: Senators Bob Drake, Robert Duxbury, Randy Frederick, Dick Hainje, Gerald Lange, Marguerite M. Kleven, and Kermit Staggers; and Representatives Quinten Burg, Judy Clark, Michael Derby, Ted Klaudt, Willard Pummel, J.E. (Jim) Putnam, Dan Sutton, and Mitch Richter. Senators Robert M. Benson, Eric Bogue and H. Paul Dennert, and Representatives William F. Cerny and Richard Wudel were unable to attend.

Staff members present included Dale Bertsch, Chief Analyst for Fiscal Research and Budget Analysis; Mark Zickrick, Principal Fiscal Analyst; David Becker, Senior Fiscal Analyst; Annie Mertz, Senior Fiscal Analyst; Reed Holwegner, Senior Fiscal Analyst; and Rhonda Purkapile, Senior Legislative Secretary.

A list of guests present during all or part of the meeting is on file with the master minutes.

(NOTE: For sake of continuity, the following minutes are not necessarily in chronological order. Also, all referenced documents are on file with the Master Minutes.)

The Interim Report, prepared by the Bureau of Finance and Management, is on file with the master minutes as Document #1.

Ms. Sheila Romkema-Gestring, Department of Human Services, testified that the department is requesting $500,000 of FY2001 other fund expenditure authority to utilize a grant received from the American Legacy Foundation. This foundation was established as a result of the Tobacco Settlement Agreement, with its goal being to reduce tobacco use among youth.

Ms. Romkema-Gestring reported that the department is requesting $923,813 in FY2001 federal fund expenditure authority for the Division of Developmental Disabilities. She noted that the division rebased the service-based rates, which encumbered all available funds. Subsequently, the Adjustment Training Centers (ATCs) submitted further corrections that had a financial impact to the rates already set. There has also been a conversion of consumers from Community Training Services to Home and Community Based Services.

Mr. Mark Barnett, Attorney General, reported that he is requesting $1,000,000 of FY2001 federal fund expenditure authority to utilize the Cops Technology Grant funding that they have been awarded. This grant program provides funding for the continued development of technologies and automated systems to assist state and local law enforcement agencies in investigating, responding to, and preventing crime.

In response to committee questions, Mr. Barnett indicated that the state will eventually need a new law enforcement training facility and noted the possibility of receiving federal funding to establish a joint training facility which would include a training facility for tribal police.

Senator Staggers asked if any of the equipment to be purchased with this grant money will be used in the DNA lab. Mr. Doug Lake, Division of Criminal Investigation, replied that most of the improvements to the forensic lab from this grant would be in the area of computers. He noted that the division is going through the preliminary phases of accreditation of the DNA lab.

Mr. Barnett noted that he would provide the committee with a list of purchases from the grant.

Ms. Marty Davis, Governor?s Office of Economic Development, testified that they are requesting $17,300,000 of FY2001 federal fund expenditure authority within the Community Development Block Grant. This authority is needed to complete the 1997 disaster grant payments. Ms. Davis indicated that this request is the remainder to be disbursed from a total of $57.8 million received.

Mr. Scott Bollinger, Department of Corrections, testified that the department is requesting $1,000,000 of FY2001 federal fund expenditure authority for the Juvenile Accountability Incentive Block Grant. The department was informed that the full grant award must be given to the grantee rather than the present procedure of distributing the grant on a reimbursement basis.

Mr. Bollinger reported that the department is requesting $100,000 in FY2001 federal fund expenditure authority to utilize Violent Offender Incarceration/Truth in Sentencing funds (VOITIS). These funds will be used to support chemical dependency staff under the Department of Human Services in the DOC parole offices located in Rapid City and Sioux Falls and the Yankton Trusty Unit to reduce parole violations related to chemical dependency issues.

Mr. Bollinger reported that the department is requesting $341,000 of FY2001 federal fund expenditure authority to develop "Forward," a life skills program designed for adult inmates in the SD state prison system who are within one year of release from the prison and would continue on the program for six months after release. Mr. Bollinger indicated that some of this funding could be utilized for juveniles that qualify, such as those who have reached the age of majority but are not out of the care of the department. No additional staff would be required because the department intends to contract with community services organizations.

Mr. Bollinger testified that the department is requesting $500,000 of FY2001 federal fund expenditure authority to utilize a Byrne Grant for the fire hazard cleanup at Custer State Park.

Ms. Doneen Hollingsworth, Secretary, Department of health, testified that the department is requesting $751,260 of FY2001 federal fund expenditure authority for a State Planning Grant. The State Planning Grant program is a new federal program being administered by the Health Resources and Services Administration. South Dakota is one of nine states chosen to receive this competitive grant award to study the uninsured population and to develop a strategic plan to increase the percentage of insured South Dakotans. Each state receiving the grant will conduct a one-year, in-depth analysis that will be used as the basis for identifying the most effective methods for providing access to affordable health insurance coverage. Secretary Hollingsworth noted that 35 states have a higher rate of uninsured than South Dakota.

In response to committee questions, Secretary Hollingsworth indicated that the department will be contracting with a private research group to conduct the survey.

Co-chair Frederick adjourned the meeting at 2:00 p.m.