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Moody’s Upgrades South Dakota Bonds
Moody’s Upgrades South Dakota Bonds
PIERRE, S.D. – Gov. Dennis Daugaard announced today that Moody’s has upgraded South Dakota’s lease-revenue bonds. The bonds issued through the South Dakota Building Authority and Vocational Education program within the South Dakota Health Education Facilities Authority have been awarded a Aa1 rating, an improvement over the previous rate of Aa2.
“This upgrade is the highest rating South Dakota can receive from Moody’s. It is the equivalent of the AAA we received from S&P last spring,” said Gov. Daugaard. “We’ve worked hard to place our state on a firm financial footing, and that stewardship has paid dividends.”
In their release of the rating, Moody’s attributed the upgrade to South Dakota’s “conservative fiscal practice, low fixed costs and a stable and healthy economy.”
The ratings agency applauded the state’s recent record of structurally balancing the budget and having high reserve levels, low debt, and zero pension liability. South Dakota’s newly adopted practices of issuing a debt affordability report, long-term financial plan and capital expenditure plan also contributed to the upgrade.
Credit ratings give potential bond purchasers a measurement of state performance and credit worthiness. Upgrades typically allow issued bonds to carry a lower interest rate, providing interest savings to issuers like the Building Authority.
“These types of upgrades demonstrate our state’s exceptional credit worthiness to financial markets. This leads to substantial savings in future interest payments,” Gov. Daugaard said.
To read Moody’s credit opinion for South Dakota, go to bfm.sd.gov/econ/MoodysFullReport.pdf
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On the road again! With a stop in Pierre.
Well, it looks like I’m on the road again heading out west for work. It’s nice to be unchained from my desk for a change, even if it does involve me driving across South Dakota for some required training.
The good news is that I get to stop in Pierre for a little bit today, possibly catching some of the education tax debate before I hop back in the truck and continue my journey.
I’ll see if I can snap a few pictures, and say hi to some of the legislators on the floor. Either that, or I will be dodging tomatoes from them. One of the two.
House Bill 1161: Today legislators can vote for free enterprise, or they can vote for more government. It’s their choice.
February 17th was an interesting day for lending in South Dakota.
House Bill 1126, which was primed by State Representative Mark Mickelson was being heard in House Commerce and Energy Committee for the purpose of exempting certain entities from provisions related to money lending licenses.
It was a bill designed to exempt from regulation any entity which has made or acquired no more than ten loans to other entities within any calendar year and any entity that purchases and services commercial loans acquired for investment purposes. These are typically big dollar loans that are used by groups of investors. It failed, but it boasted a group of sponsors led by Mark Mickelson, and including Representatives Beal, Deutsch, Dryden, Duvall, Harrison, Hunt, Jensen (Alex), Johns, Langer, Otten (Herman), Partridge, Rasmussen, Schoenbeck, Solum, Steinhauer, Verchio, Westra, Wiik, and Willadsen and Senators Curd, Greenfield (Brock), Haverly, Heineman (Phyllis), Peters, and Tieszen.
That same day, House Bill 1161, sponsored by Kris Langer, a bill to provide for and regulate consumer lines of credit, was heard in House State affairs. This bill which passed committee has attracted a lot of grousing from liberals, because it creates a new line of short-term consumer credit. Ironically, Mark Mickelson who sponsored the bill to exempt high-dollar investment lending from state oversight sits on the House State affairs committee and cast a no vote on the short-term consumer credit measure.
So, why is deregulation good for the rich, but low-dollar lending for those of less means is being regulated out of business? It’s not terribly consistent.
Frankly, I have a really hard time with the attitude of overregulation being led by those with a far left point of view on lending. For me, as a Republican, I believe it’s important to allow consumers to make their own decisions, and I would invite Representative Mickelson and the other sponsors of House Bill 1126 to keep that in mind when they vote on House Bill 1161 today.
If you’ve noted what I’ve written about payday lending this past week, South Dakota is one of the beachheads that the opponents of this type of product are trying to establish through the initiated measure process. But, at the same time the opponents of payday lending are trying to kill the competition, they are advocating for the federal government to create a program so they can set up their own program backed by taxpayers.
I can’t help but shake my head at Republicans who rail on about Obamacare this, and Obamacare that, yet at the same time are piping up in crackerbarrels talking about opposing House Bill 1161. Because those who vote against it will be complicit in helping to establish the “Obama Loan” program being developed at the federal level – a government backed loan program that is designed to have government assume the risk that private lenders assume now. So, instead of those getting the loans assuming the risk, The “Obama Loan” program will have taxpayers assuming it.
Why on earth would legislators want to seek a taxpayer funded solution versus one willingly being pursued by the private sector via 1161?
The thing to keep in mind is that the people promoting this sea change in personal lending at the federal level, while they’re pushing ballot measures, and opposing 1161 at the state level are farther left than George McGovern when it comes to taking away freedom and consumer choice. Even McGovern believed that we need to value the freedom to make our own decisions.
As I’d quoted before, McGovern noted ” Since leaving office I’ve written about public policy from a new perspective: outside looking in. I’ve come to realize that protecting freedom of choice in our everyday lives is essential to maintaining a healthy civil society. Why do we think we are helping adult consumers by taking away their options? We don’t take away cars because we don’t like some people speeding. We allow state lotteries despite knowing some people are betting their grocery money. Everyone is exposed to economic risks of some kind. But we don’t operate mindlessly in trying to smooth out every theoretical wrinkle in life.”
The vote today on House Bill 1161 comes down to a basic question with our economic system and our political beliefs. Either we value the freedom to make our own decisions free of government coercion, or we don’t.
Today legislators have a clear choice to make. They can vote for free enterprise, or they can vote for more government. It’s their choice.
Former State Rep Lora Hubbel contemplating dem US Senate primary?
It’s always colorful in South Dakota politics. And under the comments last night, Tara Volesky, an associate of Lora Hubbel’s who ran the independent Mike Myers for Governor campaign, offered the following gem:
So, Hubbel may jump in the Dem primary against Jay Williams? I swear you can’t make this stuff up.
US Senator John Thune’s Weekly Column: Bringing the 5G Network One Step Closer to Reality
Bringing the 5G Network One Step Closer to Reality
By Sen. John Thune
Do you remember Gordon Gekko, the character portrayed by Michael Douglas in the iconic 1987 movie “Wall Street”? If you do, you might also remember scenes in which Douglas’ character makes phone calls from his state-of-the-art Motorola, which had Americans wondering what it must be like to have one of their own. While a lot has changed since 1987 – including no longer having to be Gordon Gekko rich to own a mobile phone – some things have not. Americans still want the latest and greatest technology available at their fingertips, and as mobile devices have gotten smaller and their operating systems faster, we have fully integrated these devices and the technology they offer into our day-to-day lives.
Think about everything you’re able to do with a mobile device and the ease with which you’re able to do it. A seat on a flight to London can be booked from the seat of your car in traffic, and a pizza can be ordered and delivered by texting or tweeting an emoji from your mobile phone. The technology that exists today allows us to connect instantaneously with people from coast to coast, and through apps like Facebook, Twitter, Periscope, and others, citizen journalists can broadcast from around the world.
It’s pretty amazing to think of the technological advancements we’ve seen over the last decade, which begs the question, what new advancements will we see in the decade to come? Imagine a world in which lightbulbs, wheelchairs, and even the roads and bridges we drive on potentially become Internet-connected. What if download speeds were no longer relevant, and the content you want and need could be instantly accessed from wherever you’re located? While we’re not there yet, I think we’re on the path to achieving it.
In order to get there, I believe we need to work toward deploying a fifth generation or “5G” wireless broadband network throughout the country, and there’s a collective duty as policymakers and innovators to see that it’s done as effectively and efficiently as possible. 5G shouldn’t be viewed simply as the next incremental step in wireless broadband technology, but instead as an enormous leap toward a revolution in our wireless capability in America. These networks will not only bring the already connected world closer together, but they can help connect rural areas, like some places in South Dakota, where high costs and other difficulties have delayed the high-speed broadband needed for robust Internet access.
As chairman of the Senate Committee on Commerce, Science, and Transportation, I’ve authored legislation, the Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless (MOBILE NOW) Act, which would help usher in the 5G era by facilitating the investment and technology required to get there. MOBILE NOW is bipartisan, supported by industry leaders, and if enacted, would benefit consumers and businesses alike. We’re going to work hard in the coming weeks and months to see that this important legislation makes its way through Congress so America’s innovators can continue their work on our 5G future.
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US Senator Mike Rounds’ Weekly Column: Recognizing the Mental Health Needs of Our Veterans
Recognizing the Mental Health Needs of Our Veterans
By Senator Mike Rounds
South Dakota is home to more than 72,000 veterans who have bravely and selflessly served our country. Making sure each veteran is cared for and receives top-notch health care has been a priority for me while working in the Senate. While there are many problems plaguing the Department of Veterans Affairs (VA), addressing mental health reform is among the most important. According to the Department of Veterans Affairs (VA), 10 to 20 percent of veterans returning from Operations Iraqi and Enduring Freedom are diagnosed with Post Traumatic Stress Disorder (PTSD), and more than 150,000 veterans have been diagnosed with PTSD in the last 15 years.
Many returning veterans struggle with the invisible wounds of war long after they leave the battlefield. While the most recent available numbers on veterans suicide have shown improvement in recent years, even one veteran taking his or her life due to the mental and physical stresses caused by service to this nation is one too many. Physical injuries can be seen and treated, but too many veterans are suffering in silence from mental health issues that are often not visible on the surface.
Early last year, Republicans and Democrats in Congress came together to pass the Clay Hunt Suicide Prevention for American Veterans Act. It was one of the first bills I cosponsored as a senator, and it was signed into law by the president. This law focuses on establishing programs to help veterans with PTSD and bring more mental health care specialists into VA facilities. Still, there is much more that needs to be done to take care of our nation’s heroes once they return home.
The Department of Health and Human Services says that surveillance is the first step in solving the problem of suicide at large. Accurate surveillance must then be followed by identifying risk and protective factors, which is followed by intervention strategies. Currently, there is no nationwide surveillance system in place to monitor suicide among all veterans. With the majority of veterans not enrolled in Veterans Health Administration, accurate data is hard to find. While the VA has done a decent job gleaning data from the National Death Index and developing data sharing agreements with all 50 states, surveillance still needs to be a top priority.
Many veterans today do not have access to mental health services when they need it most. I hear from veterans all across South Dakota who have trouble getting appointments at VA facilities. In fact, about 60 percent of my office’s casework stems from veterans requesting help. When a veteran is struggling with PTSD and seeks mental health help from his or her VA provider but is forced to wait weeks to see a doctor, we have a major problem on our hands. I am committed to working with my colleagues on the Senate Veterans’ Affairs Committee as well as VA Secretary Robert McDonald to address these critical issues.
The VA and our committee are committed to addressing the heartbreaking issue of veteran suicide and making sure each and every veteran gets the care he or she deserves.
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Congresswoman Kristi Noem’s Weekly Column: Don’t Forget States Created the Federal Government
Don’t Forget States Created the Federal Government
By Rep. Kristi Noem
Washington often forgets a reality President Reagan so succinctly explained: “[T]he Federal Government did not create the States; the States created the Federal Government.” One of my primary objectives as South Dakota’s sole member of the House of Representatives is to reduce the federal government’s influence, giving state and local governments as well as individuals more opportunities to make the decisions that impact their families and communities most. This was something I spoke with the South Dakota State Legislature about earlier this month.
I join the thousands of South Dakotans who are deeply concerned that the Obama administration has stepped over its Constitutional limits and grossly expanded the role of the federal government in our lives. I am proud that over the last few years, we have passed dozens of bills to return more and more authority to states and individuals. We haven’t always been successful in getting the President to sign them into law, but we’ve put the marker down and made some meaningful progress along the way.
For instance, bureaucrats in Washington have been able to micromanage our children’s classrooms for far too long. Last December, we passed, and convinced the President to sign, the first major education overhaul since 2002. With this new legislation in place, those closest to our kids will be more empowered to design an education system that is right for them. As an example, we made sure the federal government could no longer pressure states into adopting specific standards, such as Common Core.
Congress also passed into law the first long-term highway bill in a decade. This legislation gives states five-years of certainty to plan, invest, and conduct maintenance on our intricate network of roads, bridges and railways. It also gave state leaders more flexibility to spend money in a way that worked at the local level.
I’ve been fighting for flexibility like this because I put a lot more trust in our state government than the federal. Rather than handing down federal mandates, Washington should be taking lessons from the states about what really works. After all, states are often incubators for innovative public policy and South Dakota is no exception.
We have an incredibly healthy economy. Not only does South Dakota have a higher percentage of people participating in the workforce than most states do, but our unemployment rate is the second-lowest in the country. Much of this is due to the fact that the state government puts minimal burdens on families, whether through fewer regulations or lower taxes.
Despite the successes we’ve long been able to share, I am the first South Dakota Representative in history to serve on the congressional committee responsible for designing our nation’s tax policy. I see my duty on that committee as an overdue opportunity to share our experience as a proven example of what can be accomplished by a government for its people.
During my first year on the committee, we were able to put permanent protections in place that keep more Americans from enduring tax hikes. For example, we permanently extended the state and local sales tax deduction, which will save people money in states like South Dakota that don’t burden their citizens with a state income tax.
Protecting states’ rights is critical. Earlier this month, America lost a great legal mind and a tremendous defender of the 10th Amendment, which preserves states’ rights. Supreme Court Justice Antonin Scalia was a man of admirable faith and unyielding candor, but perhaps one of the greatest gifts Justice Scalia imparted upon the Supreme Court was a lesson that the words captured within the Constitution matter. That includes the 10th Amendment: “The powers not delegated to the United States by the Constitution … are reserved to the States respectively, or to the people.” I couldn’t agree more.
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Governor Daugaard’s Weekly Column: Implementing Juvenile Justice Reforms
Implementing Juvenile Justice Reforms
A column by Gov. Dennis Daugaard:
Under the South Dakota Constitution, the governor is “responsible for the faithful execution of the law.” This is not something I take lightly. In my second term I have been especially focused on executing new reforms passed by our legislators – and not simply executing but executing well. Without good execution, a well-intentioned law is meaningless, and the Juvenile Justice Reinvestment Initiative is one thing I’m determined to execute well.
A year ago, I spoke to legislators about a growing problem in juvenile corrections. South Dakota had the second highest juvenile commitment rate in the nation. This ranking was not explained by a higher rate of juvenile violence. In fact, South Dakota’s juvenile violence arrest rate was just one-third of the national average.
Our high commitment rate was driven by nonviolent offenses. Seven of every 10 youth committed to the Department of Corrections in 2013 were sent to them for misdemeanor offenses, probation violations and “status offenses” – violations which, if committed as an adult, would not even be considered crimes.
I asked a group of stakeholders to study this issue. They did the research and found that for many youth, commitment to residential placement fails to produce better outcomes than alternative sanctions. Commitment also costs much more and can actually increase reoffending in certain circumstances.
To address this problem I proposed comprehensive juvenile corrections reforms which the Legislature passed a year ago. Under these reforms, the state will reserve commitments to the Department of Corrections for youth who commit the most serious offenses and pose a risk to the public. The reforms also called for the development of an array of effective programs for youth offenders, including community-based programs to address substance abuse, antisocial tendencies and challenges within the family. These programs allow youth to get the help they need without being removed from their homes. They also help judges as they perform the difficult task of weighing how best to set youth on a better path.
The state has been working to prepare for the most significant changes, which became effective Jan. 1. The Department of Social Services has identified a core set of effective programs to be available in communities. To date, 12 contracts have been awarded to deliver Functional Family Therapy throughout South Dakota. This program is designed to address adolescent behavior problems, substance abuse and delinquency, and help families support their children in positive ways.
The Unified Judicial System has been working to ensure judges are aware of the statutory changes that impact them, and that probation officers have the tools they need. Probation officers will be utilizing a guide of graduated consequences to hold youth accountable for their conduct by responding consistently and quickly to violations, and also to incentivize positive behavior.
The Department of Corrections has created a financial incentive program to encourage counties to divert juveniles from detention, and yet allow counties to request funds when the number of detention bed days in a given calendar year exceeds an established baseline.
It is still very early, and it will take some time before we see the impact of these reforms. Still, early indications are hopeful, and I am committed to executing these new policies well. If all goes as hoped, we’ll have fewer nonviolent youth in lock-up, and better programs to put them on track for a better future.
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