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An Overview Of The Fiscal Year 2018 Budget Proposal
A column by Gov. Dennis Daugaard:

The week of the annual Budget Address is always a busy time in the Capitol Building, and this year is no exception. The halls are filled with Christmas trees and with hundreds of visitors who come to see them. We also welcome newly-elected legislators, incumbents, and those whose legislative service is ending, to discuss the state budget for the upcoming year. After the address, I travel to different parts of the state for my budget tour where I lay out the good news and the bad news of South Dakota’s economy.

The news came as no surprise to those who attended Tuesday’s Budget Address. Our state’s revenue for the first several months of the current fiscal year has fallen short of projections, in large part because of lower sales tax collections.  Recent revenue weakness is a problem many other states share.

The good news is that the South Dakota Council of Economic Advisors projects South Dakota will see steady but slow economic growth in the next few years. According to the council’s economic forecast, although farm income is weak, nonfarm income is expected to grow at rates that are near historical highs.

Additionally, the state won’t need to spend all of the money that was appropriated by the Legislature last year. Total state spending in the current budget year is projected to be $34.7 million less than what was budgeted last session. Over the past several years, the state has also received stocks in the unclaimed property fund, and converting those stocks to cash will also generate funds on a one-time basis.

Through these savings, the state will be able to meet the revenue shortfall and appropriate modest increases for our priority areas. For the upcoming fiscal year, I am proposing a 1 percent increase for education, health care providers and state employees. 

I am also proposing that the state add more money to our rainy day funds. It has been my goal to keep the state’s reserves at 10 percent of general fund spending, and right now the reserves are at 9.8 percent. I am recommending that the state add $2.4 million of one-time money to reserves to bring the funds back to the 10 percent level. Among the 50 states, the median rainy day fund is 5 percent.

I am also recommending that we use one-time money to help fund the state Animal Disease Research and Diagnostic Laboratory, which is South Dakota’s animal health laboratory, located on the SDSU campus. The lab’s purpose is to provide critical research and diagnostic support to protect our citizens and livestock industry from disease outbreaks. Most recently, the lab responded to outbreaks of Avian Influenza in poultry and PEDV in swine. The facility is out of date and needs to be modernized to meet operating standards.

Given our current revenue situation and what other states are dealing with right now, South Dakota is fortunate not to be looking at spending cuts or freezes this year. It is thanks to our adherence to conservative budget practices that, even in a year like this one, we are in a position to balance our budget and slightly increase spending for education and Medicaid. I look forward to a good debate about the proposed budget with the Legislature and the public over the next few months. 

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Initiated measure 22 faced it’s first battle in a courtroom today. Judge Mark Barnett was not terribly kind to the measure, and found several problems with it that may be insurmountable.

 Judge Barnett pointedly raised issues with the constitutionality of the following portions of IM 22:

• The Ethics Commission.
• The Appropriation for the so called “democracy credit” program.
• And most importantly, one of the most problematic portions of the measure-Section 31 of IM 22 and the “gift” limitation.

With a written decision coming possibly as soon as next week, look for Judge Barnett to hammer IM 22 as it relates to those items. 

The question is whether any of the measure can stand apart from those issues, or if the rest of the measure is so inexorably tied to them it must be shut down in its entirety.

I’m reading a summary of what happened at the IM22 hearing, and apparently reporter Bob Mercer collapsed at the conclusion of the hearing and had to be hauled out by ambulance.

(Apparently, in addition to several parts being unconstitutional, IM22 is bad for one’s health).

Circuit Court Issues Preliminary Injunction in Initiated Measure 22 Lawsuit

PIERRE, S.D. – Attorney General Marty Jackley announced today that Circuit Court Judge Mark Barnett has issued a preliminary injunction in the Initiated Measure 22 lawsuit.

“It is my duty and responsibility as Attorney General to defend measures adopted by the voters and I will continue to do so,” said Jackley.

Initiated Measure 22 was approved by the majority of South Dakota voters last month as an act to revise State campaign finance and lobbying laws, create a publicly funded campaign finance program, create an ethics commission, and appropriate funds.

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Thune Statement on Passage of NDAA Conference Report, Critical Fix to Impact Aid Program

“Not only does this bill provide essential funding for our troops, but it also includes a critical fix to the Impact Aid program that will help protect dozens of schools throughout South Dakota and the students they serve.”

WASHINGTON — U.S. Sen. John Thune (R-S.D.) today issued the following statement on the Senate’s passage of the National Defense Authorization Act (NDAA) conference report, legislation that will provide our military with the largest pay increase since 2010 and make reforms to defense acquisition, military health care, military justice, and security cooperation.  

“Providing our troops with the resources they need to keep our nation safe is one of Congress’ most important responsibilities,” said Thune. “After extensive bipartisan work in the House and Senate, we are sending the president a bill that provides troops with the pay raise they deserve and includes reforms to make our military more efficient and effective. I urge the president to put our troops first and sign this bill without delay.”   

The NDAA conference report also includes a provision that will fix statutory language that negatively affects the Impact Aid program in states across the country, including South Dakota.

“Not only does this bill provide essential funding for our troops, but it also includes a critical fix to the Impact Aid program that will help protect dozens of schools throughout South Dakota and the students they serve,” continued Thune. “South Dakota relies on Impact Aid, so I’m glad this issue will soon be resolved and that our schools will no longer face what would have been drastic cuts in funding.”

Thune worked closely with Sen. Jim Inhofe (R-Okla.) to secure this critical Impact Aid provision in the NDAA. This legislation now heads to the president for signature into law.

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A thought came to mind after reading how South Dakota Democrat Leaders were claiming that South Dakota needs to fully implement the Unconstitutional Initiated Measure,  IM22:

State Senate Democratic leader Billie Sutton suggested Daugaard is going against the will of the people.

“It was the vote of the people that passed it by a majority and, so, I don’t think it’s fair to just pick pieces that you like or dislike,” said Sutton.  Sutton and Hawley said if there are problems with the measure, then the legislature can try to work through them, but Daugaard’s approach is wrong.

Read that here.

Since Democrat Leaders are in full support of retaining Initiated Measure 22, and IM22 was promoted on claims that Lobbyists are buying legislators….

Does that mean Democrats are going to cancel the annual Democrat Party Lobbyist fundraiser during session, where the Dem Party raises thousands of dollars annually from the very people they call corrupt?

At the very least, when they get the invitation, it should give pause to the lobbyist corps before they think of putting pen to checkbook.

The Legislator led lawsuit against Initiated Measure 22 will be heard this afternoon in front of Judge Mark Barnett in a Hughes County Courtroom, with the legislators standing against those who promoted the awful and arguably unconstitutional measure, as well as their own Attorney General, who is required to defend it in a court of law:

Their lawsuit receives its first hearing Thursday afternoon in Hughes County court. Assistant attorney general Steven Blair has filed state government’s defense of IM 22.

“Reducing the appearance of government corruption is a compelling government interest,” Blair told the court in the state’s response.

Blair said there isn’t a retroactive intent in the $100 limit on gifts to a legislator or family member from a lobbyist or a group that employs a lobbyist. Jobs they already have shouldn’t be affected, he said.

The publicly funded Democracy Credits system for legislative and statewide candidates is legal as well, Blair said. It relies on an appropriation of $9 per registered voter. Blair said the appropriation is legal too.

and…

Representing Solberg and Frankenfeld is John Hinrichs of Sioux Falls. Other names on the intervention motion from the firm are Heidpriem and Kasey Olivier. Attorney James Leach of Rapid City is also on it.

Read the entire story here.

I notice their defense doesn’t have much to say about the unequal access of voters to IM22’s Democracy “Socialism” credit program, where government money is to be used for political campaigns.  I genuinely believe the manner in which some voters have access to it, and others don’t is going to be one of the downfalls of the measure.

What are your thoughts?

Rounds Statement on Meeting With Dr. Ben Carson

WASHINGTON – U.S. Sen. Mike Rounds (R-S.D.) today made the following statement following his meeting with Dr. Ben Carson, who President-elect Trump recently announced he will nominate to be Secretary of the U.S. Department of Housing and Urban Development (HUD): 

“I thank Dr. Carson for taking the time to meet with me this morning to discuss his ideas for the Department of Housing and Urban Development. During our visit, we discussed ways to streamline HUD and make it more effective, as well as housing priorities in South Dakota, particularly in our tribal communities. I thank Dr. Carson for his willingness to take on this important role in government and look forward to his confirmation hearing.” 

Rounds is a member of the Senate Banking, Housing and Urban Affairs Committee, which has jurisdiction over HUD and will hold Carson’s confirmation hearing. Senate Majority Leader Mitch McConnell has pledged to consider all of President-elect Trump’s nominations in a thorough and timely manner in order to assure a smooth transition between administrations.

 

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Attorney General Marty Jackley had a fundraiser in Rapid City last night towards his campaign (with checks payable to Marty Jackley for Governor)

And from his facebook page, it looks like he had a nice crowd there.

Never let it be said that State Dems passed up an opportunity to take taxpayer money, according to KCCR Radio:

Republican Governor Dennis Daugaard urged the State Legislature in Pierre Tuesday not to fund a major part of Initiated Measure 22 approved by the voters. Democrat Leaders say that is “a little bit dangerous.”

The leaders of the small contingent of Democrats in Pierre insist there is enough money to fund public financing of election campaigns, the so-called Democracy Credits, without hurting other budget areas.

State House Democratic Leader Spence Hawley of Brookings says they need to hash out the measure. State Senate Democratic leader Billie Sutton of Burke suggested Daugaard is going against the will of the people.

Read it here.