Category: Gubernatorial News

Overview of the 2015 Legislative Session
A column by Gov. Dennis Daugaard:

Earlier this month, the State Legislature concluded the main run of its nine-week session. The session is a time for debates, and some disagreements, but we can be proud of the work our legislators did and the decisions they made.

This year, the Legislature passed an important bill to reform our juvenile justice system. South Dakota has the second highest juvenile commitment rate in the nation, even though our juvenile violent crime arrest rate is just one-third of the national average. Rather than continuing to place juveniles in expensive state-funded facilities, we will invest in proven intervention and treatment programs that keep youth close to home and connected to their communities. This bill passed with only seven “no” votes and I appreciate the Legislature’s strong support.

I also appreciated the Legislature’s passage of a comprehensive road and bridge funding bill. Especially in a rural state like South Dakota, good quality roads are our lifeline. State highways, county oil, township gravel and hundreds of rural bridges are in need of additional maintenance. Maintaining infrastructure is one of the most fundamental functions of government. The Legislature showed true courage and vision this year by dealing with this problem now, rather than leaving it for future generations. No one likes to raise taxes, but by spending a little more on maintenance now, South Dakota will avoid much higher costs later.

The Legislature passed a state budget this year that is honestly balanced. In South Dakota, we don’t spend money we don’t have. We don’t rely on inflated revenue estimates or accounting gimmicks. We use ongoing revenue to fund ongoing expenses. At least 21 other states are dealing with deficits today, often because of short-sighted budget decisions. Meanwhile, South Dakota is becoming even stronger. This year, we put new limits on borrowing by state authorities, established procedures to more effectively collect debt owed to the state and gained greater insurance protection for our state buildings.

Our state budget is a statement of our priorities. Education is 45 percent of general fund spending, and we increased the K-12 formula by more than the law requires. The Legislature also authorized the first increase in the South Dakota Opportunity Scholarship since it was created, and added funding for high school students taking dual credit courses at our universities and technical institutes. I also joined with legislative leaders to create a Blue Ribbon Task Force on Teachers and Students, which will spend the next year studying the teaching workforce and our school funding formula. The state budget also increased reimbursement for Medicaid providers, with extra funds for providers who offer front-line care in our communities.

Legislators made many other important decisions this year. We modernized our laws to deal with contagious disease outbreaks and to offer better screening of infants for inherited or genetic disorders. We improved our insurance laws to offer better coverage for children with autism. We found a way to continue the important work of the Jolene’s Law task force, which is taking on the difficult issue of sexual abuse of children.

We continued our state’s investment in the Sanford Underground Research Facility, which offers a once-in-a-generation opportunity for a national laboratory in the Black Hills. We increased local control over decisions about livestock development. And we passed a constitutional amendment that, if approved by the voters, will strengthen higher education by recognizing the important role of our technical institutes in workforce development.

South Dakotans can be proud of the work of our state legislators. The vast majority of the big decisions are made on a bipartisan basis. The highway bill, the juvenile justice bill, the state budget and many other bills passed with broad bipartisan support.

No one agrees with every decision or every vote, but our legislators do their work respectfully, with open-minds and a commitment to service. Unlike Washington, D.C., where partisanship leads to gridlock and gamesmanship, our legislators consider every issue on its own merits.

Our part-time legislators come to Pierre for nine weeks in winter, and then return home to live and work among the friends and neighbors they serve. I thank all 105 state legislators for their hard work this year. If you see a state legislator in the coming days, I hope you say “thank you” as well.

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Eliminating Unnecessary Red Tape In State Government
A column by Gov. Dennis Daugaard:

Every year, from the second Tuesday in January until mid-March, the South Dakota Legislature convenes in Pierre to create laws. Legislators come to town ready to offer proposals to improve our state and better serve South Dakotans.

This legislative session, a total of 429 bills were introduced and as I write this, I’ve signed 198 of those bills into law. But not every one of those bills creates new laws. We’ve also repealed laws. So far this year, I’ve signed 13 bills to repeal unnecessary and outdated laws.

With laws, more isn’t necessarily better. Laws should be clear and easy to follow. Government shouldn’t place unnecessary hurdles before our citizens or entrepreneurs, and things shouldn’t be overly complicated for people who are trying to know and obey the law.

That’s why a few years ago I started asking state agencies to identify provisions we can repeal.

With the help of the agencies and legislators, we’ve already gone a long way in removing unnecessary red tape in state government. In this legislative session alone, we have repealed 235 sections of law and 90 sections of administrative rules. Since beginning this effort in 2012, we have eliminated over 4,000 sections of law and regulations – which amounts to a total of 444,426 words that have been repealed.

We’ve repealed outdated provisions dealing with a wide range of subjects, from petroleum products, to county prisoners, to the federal census, to traction engines, to the medical department of the National Guard, and more.

I am grateful legislators have joined me in my effort to minimize red tape and I hope this is a habit that we will continue in years to come. Our efforts to cut red tape may not be creating headlines, but they’re important.

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Preserving A Way Of Life Through Ag Development
A column by Gov. Dennis Daugaard:

In South Dakota, agriculture is more than just a sector of our economy. It’s a way of life. Whether it’s a small family farm, a sizeable cattle ranch or a dairy operation, all forms of agricultural businesses are important to that way of life.

In 2013, the South Dakota Department of Agriculture (SDDA) began offering counties a service called the County Site Analysis Program. This service helps counties use data to identify sites suitable for agriculture-related development, and to avoid sites which are not suitable.

Ag investments are vital, especially in rural South Dakota, but development must be done responsibly. Because not every new project is a good fit in every location, the program helps county commissioners and landowners determine where projects best fit.

Through the County Site Analysis Program, SDDA looks at local zoning ordinances, locations of roads, utilities and other infrastructure, as well as other local permitting requirements. This information is used to rate property locations on their suitability for things such as manufacturing, commodity processing or livestock-related enterprises.

This program respects local control, because local officials must initiate the process by a formal resolution, requesting SDDA assistance. County commissions, planning and zoning boards, and landowners can use the produced data to make well-informed decisions. Local leaders use the data in their comprehensive planning efforts; landowners have concrete information outlining options for their land; and agribusinesses learn where their investments will be welcomed.

Even though the County Site Analysis Program is fairly new, a majority of counties have already expressed interest in participating. Since the program’s launch, 49 counties have requested a site analysis, and SDDA has completed analyses in 15 counties.

In addition to this program, local governments may soon have another way to pave the road for economic development. There’s a proposal in the Legislature right now that would revise state law on conditional use permits. Conditional use permits are local zoning exceptions which allow property to be used for specific purposes. Cemeteries, churches, golf courses, gravel pits and livestock barns are some examples of projects that might require this kind of permit.

Under current state law, local governments must have a two-thirds majority to approve conditional use permits. House Bill 1201 would allow local governments to change that requirement to a majority vote, if they so choose. Like the County Site Analysis Program, this proposal respects local control. It does not mandate that local governments change the current supermajority requirement. It gives the option. This bill could make it easier to start an agribusiness in South Dakota within our counties and municipalities who invite those opportunities.

Agriculture’s preeminence in our state economy is not something that is inevitable. Local leaders understand this and they know they must be intentional about allowing for opportunities. The County Site Analysis Program and House Bill 1201 seek to broaden those opportunities.

By furthering ag development in our state, we’ll not only be maintaining our number one industry, but we’ll be preserving a way of life.

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The Future Of The Sanford Underground Research Lab
A column by Gov. Dennis Daugaard:

In 2001, when the Homestake Mine in Lead closed, South Dakota lost one of its iconic businesses. Over the past 14 years, however, that setback has evolved into a unique opportunity, as the Sanford Underground Research Facility has been created within the former mine, nearly a mile underground.

Last week, I met in Pierre with Dr. Nigel Lockyer, the director of Fermi National Accelerator Laboratory. This facility, also known as Fermilab, is just outside Chicago, and is one of our nation’s key national laboratories, focusing on high energy particle physics.

Fermilab and the Sanford Lab are joining together to support the Long Baseline Neutrino Facility (LBNF). This new experiment will aim a beam of neutrinos through the curvature of the earth, from Fermilab in suburban Chicago to a large underground detector at Sanford Lab in Lead.

I have never felt more optimistic about the future of Sanford Lab than I do today. If approved, this LBNF experiment will be a massive “anchor tenant” for the Sanford Lab, and it will secure the lab for decades, with the LBNF experiment expected to last until at least 2040.

In Washington, D.C., elected leaders and government officials are moving in support of LBNF. The President’s budget includes funds to operate the Sanford Lab and discusses the prospects for future experiments. Officials from the Department of Energy are working closely on the proposal.

The experiment is also receiving international support. A coalition of European nations, as well as nations in Asia and South America, are expressing support for the project.  They have also expressed interest in providing financial contributions. Rather than competing with the United States in this area, these nations are pooling their resources with us to support our research.

I am very hopeful that LBNF will continue to move forward and that, within a year or two, we will secure the Sanford Lab well into the future.

We are at this position today because many South Dakotans had the vision to begin this project and the resolve to push it forward. Gov. Bill Janklow began the discussion when the mine closed. Gov. Mike Rounds made the lab’s development a major priority, and during his tenure state legislators put $42 million into its development. Philanthropist T. Denny Sanford donated another $70 million to move it forward. These funds have led to $160 million in federal funding.

Those investments are already paying off. Sanford Lab has spent $112 million on contractors and vendors, 70 percent of which was spent with South Dakota companies. The lab employs 163 full-time staff and has a payroll of $12.4 million. The lab has brought many researchers to Lead, and it has created new educational opportunities for South Dakota students, including doctoral programs in physics at the School of Mines and USD.

And once LBNF is finalized, it will represent a $300 million construction project in Lead, and will bring even more jobs and activity to the lab.

We can be very proud of the vision South Dakotans have shown in moving this project forward.  The future of the Sanford Underground Research Facility has never been brighter.

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Offering Quality, Affordable Higher Education In South Dakota

A column by Gov. Dennis Daugaard:

Education after high school can be expensive. Over the past few decades, the cost of higher education has increased much faster than average inflation. The costs of things like food, housing and medical care have increased over the years, but, on average, not at the rate of college tuition. In some places it’s downright unaffordable. For instance, a four-year degree from an Ivy League school can cost up to $100,000.

The truth is that higher education doesn’t have to be expensive and young people don’t have to go far from home to get a good education. South Dakota’s tech schools and universities offer affordable programs and a number of scholarship opportunities, including the Build Dakota Scholarship and the Opportunity Scholarship.

The Build Dakota Scholarship is a partnership between T. Denny Sanford and the State of South Dakota. Mr. Sanford donated $25 million, which the state matched, to create a $50 million scholarship program for students entering high-need workforce programs at South Dakota technical institutes.

The program will fund 300 full-ride scholarships for qualified applicants in high-need programs. Anyone interested in enrolling in one of the high-need programs in South Dakota is eligible. Graduates of these programs have high-paying, in-demand jobs waiting for them at the end of their schooling. Employers in these fields will have a bumper crop of skilled and motivated applicants for jobs that now remain unfilled.

Anyone interested in the program can go to builddakotascholarships.com to see what programs are eligible and how to apply.

The South Dakota Opportunity scholarship provides financial aid for South Dakota high school students. It is available to those who achieve a 24 or above on the ACT and earn good grades in high school while taking a rigorous curriculum. The scholarship’s aim is to incentivize our best students to stay in South Dakota for college.

Because the scholarship has not kept up with the increasing cost of college, it is not the incentive it once was to keep young people in the state. In my budget, I have proposed to increase the value of the scholarship from $5,000 for 4 years of college to $6,500 for 4 years of college. My proposal to increase the scholarship, House Bill 1147, is dependent upon approval from the Legislature.

The Build Dakota tech school scholarship and the Opportunity Scholarship are both wise investments. It is my hope that these scholarships will lead more young people to consider the affordable, high quality education experiences offered right here in South Dakota.

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Another Effort To Be Even Better Stewards
A column by Gov. Dennis Daugaard:

The word that best sums up the public trust held by all officials is stewardship. Stewardship – the careful and responsible management of something entrusted to one’s care – has been my goal over these past four years.

Good stewardship brought our budget into structural balance four years ago. It has been good stewardship, each year thereafter, to project our revenues and expenses with caution, so if we erred, we would err on the side of a surplus not a deficit. It was an exercise of careful and responsible management when, after receiving an unexpected windfall last year, we used the money to retire bonds early and to pay cash for our new veterans’ home rather than borrowing.

In another effort to improve stewardship of taxpayer dollars, I have initiated a new state debt policy this year.

Our Constitution prohibits debt. To finance construction projects and manage large outflows of funds, the South Dakota Building Authority and South Dakota Health and Educational Facilities Authority were created. These entities issue and refinance bonds to pay for things like state park projects, the buildings at the behavioral health center in Yankton and public university projects. Long-term leases between the state and these authorities retire the bonds that are issued.

Last year, I asked the Bureau of Finance and Management to create a new debt limitation and management policy to guide both the management of existing debt and the issuance of new debt through these authorities. Under this new policy, total debt cannot exceed 1.2 percent of the state’s GDP and total annual debt service payments cannot exceed 4 percent of the ongoing general fund revenue from the previous fiscal year.

We were well below these boundaries at the end of Fiscal Year 2014, with the total outstanding debt as a percentage of state GDP at 0.8 percent and annual debt service payments as a percentage of ongoing general fund revenue at 2.9 percent.

In January, the Lieutenant Governor and Commissioner of Finance and Management traveled to New York City to share this new debt policy with ratings agencies. When Standard & Poor’s revised South Dakota’s outlook from stable to positive last summer, the ratings agency encouraged South Dakota to continue to improve our already strong fiscal position. I appreciate a good credit rating because it saves the state money, but I also appreciate that outside experts are endorsing the strength of the decisions we have made.

The principle of stewardship – careful and responsible management – will continue to be my goal for the next four years. We won’t spend money we don’t have. We will keep our budget in structural balance. We will be frugal, not cheap, and seize opportunities to spend in the short term where it can lead to savings, efficiencies or better government in the long term.

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Learning More About Education Funding
A column by Gov. Dennis Daugaard:

Every year, when the Legislature meets, education is discussed and debated as much as any other topic. That’s the way it should be. South Dakota spends approximately half of our general fund budget on education, because we understand that it is a priority for our state.

Very often, debates about education focus on funding. That makes sense, because funding is the principal way that state government affects schools. Local officials decide how many teachers and staff to hire, and what to pay them. They decide which programs and courses to offer. But they make those decisions in the context of available funding.

Still, the focus on funding can draw attention away from the broader discussion – our policy goals for education in South Dakota. I believe that we have three goals: First, we want a quality system of schools focused on student achievement. Second, we want a workforce of great educators. Finally, we want an efficient, equitable funding system that supports those goals.

More funding may be the answer to achieving those goals, but we have a responsibility to the taxpayers to be certain that we are spending their dollars wisely. We need confidence that our state funding system for K-12 schools is aligned with those three goals.

That is why I am joining with legislative leaders to create a Blue Ribbon Task Force on Teachers and Students. This task force will reevaluate the current funding formula. It will collect and analyze data, engage with stakeholders and seek public input. The task force will make recommendations to the 2016 State Legislature for reform.

I know that some will say that, rather than establish a task force, we should take action now. But there are still too many questions that need to be answered.

We need to understand where teacher shortages are occurring and what can be done to address them. We need to ask why 12 states can spend less per student than South Dakota, yet pay their teachers more. We need to ask why, even as we hear growing concerns about teacher salaries, many schools’ reserve funds are increasing.

These questions need to be answered with hard data, not anecdotes or opinion surveys, and I have asked the Department of Education to compile hard data on the teaching workforce and on school funding to inform the work of the task force.

Three years ago, I joined with the Chief Justice and legislative leaders to initiate a year-long review of the criminal justice system. That process took on a difficult issue and resulted in a sweeping reform package that passed with broad support. This year, the Legislature is considering a similar reform package of the juvenile justice system, which is also the product of a year-long process.

We are bringing that same successful process to the issue of school funding. South Dakotans want a quality education for every student, and we want great teachers to provide that education. Through this process, we can gain confidence that our state funding system is focused on achieving these important goals.

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Governor Signs First Bill Of Legislative Session Into Law

PIERRE, S.D. – Gov. Dennis Daugaard today signed the first bill of the 2015 Legislative Session into law. The piece of legislation, Senate Bill 28, authorizes the Board of Regents to sell a parcel of property on the South Dakota State University campus to the City of Brookings.

The piece of property referenced in the bill was given to the university to provide rail access to the heating plant and has not been used for 35 years.

The bill contains an emergency clause to allow the Board of Regents to sell property in Fiscal Year 2015. Once the land has been sold, the proceeds from the sale will be credited to the university.

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Caring For Those Who Have Borne The Battle
A column by Gov. Dennis Daugaard:

Last year at this time, the South Dakota Department of Veterans Affairs launched Operation Reaching All Veterans. Seeking new ways to assist those who have served, the Department began an unprecedented effort to reach out to veterans all across the state.

Historically, American veterans haven’t always received the kind of support they deserve. During the Revolutionary War, the Continental Congress did not have the authority or the money to pay soldiers, so payment was left to the states. Though General Washington and many of the Founders stressed the importance of justly compensating those fighting for liberty, the states just weren’t able to afford it. Only 3,000 out of the 200,000 who served in the war actually drew a pension.

By the time the Civil War began, a federal veteran pension system was in place, and by the end of the war – at the urging of Abraham Lincoln – veterans’ hospitals were opened.

We’ve come a long way since then. But even with all of our progress, there’s still more to do. As Lincoln put it in his second inaugural address, we must always strive to “care for him who shall have borne the battle.”

Today we have a new generation to care for. Since 9/11, each of South Dakota’s 22 National Guard communities has experienced a unit mobilization in support of Operations Enduring Freedom, Iraqi Freedom, New Dawn and Noble Eagle. To date, the South Dakota National Guard has deployed more than 7,200 Soldiers and Airmen in support of the Global War on Terror. Thankfully, for the first time in more than a decade, none of our National Guard soldiers or airmen are currently deployed overseas.

With a new generation of veterans to serve, the South Dakota Department of Veterans Affairs launched Operation Reaching All Veterans last January with the goal of reaching out to every single veteran in South Dakota. This campaign was a first for the Department and a first in the nation.  Their objectives were to educate veterans and their families about benefits, programs and services; to listen to concerns, provide key contacts to assist on a local level; and, most importantly, to say “thank you.”

The Department anticipates that there are 75,000 veterans living in South Dakota. Over the last year, staff and veterans service officers estimate they have already made contact with about two-thirds of those veterans by making phone calls, staffing a booth at the Capitol and holding 153 open houses in 63 counties. One veterans’ service officer, Tom Sparrow of Turner County, personally contacted over 11,000 veterans.

Larry Zimmerman, South Dakota Secretary of Veterans Affairs, says that this was just Phase I. Phase II will involve trying to reach those that they couldn’t reach by phone.

I know there is no way to fully repay our veterans for all they have sacrificed to protect our freedom. They left the comfort of their homes and the embraces of their loved ones to put their lives on the line for us. Still, I believe Operation Reaching All Veterans is making a difference, and it’s one step toward repaying just a small part of the debt we owe to those who have borne the battle.

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