Preparing For A Lean Year 

A column by Gov. Dennis Daugaard:

In 1963 Gov. Archie Gubbard signed a bill into law which requires governors to submit an annual budget report to the Legislature. The report must be given to each member of the state Legislature on the first Tuesday following the first Monday in December. The law says “the Governor may present such report to the Legislature in person.” On Tuesday, Dec. 6, at 1 p.m. in the state House, I’ll honor the tradition of presenting that report in person to the Legislature by giving the annual Budget Address – and I’ll start by talking about the state’s revenue picture.

Since fiscal year 2017 began last July, revenue has been weak. The state’s receipts have fallen short each month: in July revenue fell $1.7 million below projections, in August another $3.8 million below, September was an additional $5.7 million short and October was worse yet with a shortfall of $8.7 million. That leaves us almost $20 million short for the current fiscal year.

The $20 million shortfall is primarily the result of lower than anticipated sales tax numbers. Low commodity prices in our ag sector is one factor which has weakened tax revenues. Although South Dakota exempts most agricultural inputs from the sales tax, large equipment sales are not exempt. When commodity prices were high, ag producers spent more on equipment, and had more to spend on personal items. With lower commodity prices, fewer ag equipment expenditures means less tax revenue and fewer dollars cycling through the economy.

The inability of states to collect sales taxes on some internet purchases is another factor leading to weakened tax revenue. The Bureau of Finance and Management estimates that up to $35 million in these taxes goes uncollected each year.

As I write this, we are still awaiting November’s sales tax numbers. Reports indicate that national retail sales over Thanksgiving week were strong. I hope that strength will be mirrored by South Dakota’s sales tax receipts.

But even if November’s numbers meet our target, it will be a lean year. We won’t have much to support spending increases or take on new expensive projects. This will be a year to focus on our priority areas and maintain our commitments. I do not anticipate a need to make cuts. The situation is not as dire as it was in 2011 when revenue had been declining for two years and we had a structural deficit on our hands. In the last few months our revenue has increased, but the increases have been less than what was projected.

South Dakota isn’t the only state where revenues are coming in lower than projected. A number of states are experiencing the same problem. Fortunately though, South Dakota is in a better position than many to deal with the problem. Over the last few years we have maintained structural balance and adhered to conservative budgeting practices. We don’t have unfunded liabilities or out-of-control spending problems. If we remain vigilant this year, we’ll continue on the right track.

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Senate Approves Bicameral Weather Forecasting Reforms

“From long-term forecasting that can prevent costly agricultural losses to more actionable information about severe weather, this legislation will help save lives and reduce avoidable property loss.” 

WASHINGTON — U.S. Sen. John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, issued the following statement after the Senate last night approved H.R. 1561, the Weather Research and Forecasting Innovation Act of 2016, by unanimous consent with a Senate amendment. The bill, as amended, which Thune and other leaders of the Senate Commerce Committee and the House Science Committee negotiated, adds other weather forecasting and research reform provisions from three bills (S. 1331, S. 1573, and H.R. 34), including reforms championed by Thune, to the House’s weather reform legislation.

“These reforms will help ensure that Americans benefit from advancements in weather forecasting and make federal forecasters better stewards of taxpayer dollars,” said Thune. “From long-term forecasting that can prevent costly agricultural losses to more actionable information about severe weather, this legislation will help save lives and reduce avoidable property loss.”

Highlights of H.R. 1561 as approved by the U.S. Senate:

Seasonal forecasting – Directs the National Oceanographic and Atmospheric Administration (NOAA) and its component agency the National Weather Service (NWS) to create usable, reliable, and timely subseasonal and seasonal forecasts, and determine the impact of these forecasts on a variety of other weather conditions. Through an authorization of $26.5 million out of funds appropriated to NWS through fiscal year 2018, the legislation anticipates significant improvements in usable and reliable forecasts for time periods of 2 weeks to 2 years. This improvement in forecasting would, for example, allow farmers to make more informed decisions about when and what to plant.  

Forecast communication – Requires the NWS to designate at least one employee in each of the established 122 weather forecast offices as the warning coordination meteorologist. Even when forecasters accurately predict dangerous weather events, preventable deaths, injuries, and property loss occur due to shortcomings in communications about what is happening and what at-risk populations should do. Warning coordination meteorologists will focus on the regional area covered by the weather forecast office and work with local officials, media, and other channels to maximize the usefulness and effectiveness of emergency communications.

Tornado and hurricane forecasting – Focuses on forecasting improvements and new research into extreme weather events. Establishes a tornado warning improvement and extension program for federal cooperation with private sector and academic partners to focus on developing and extending accurate tornado forecasts and warnings beyond one hour. It also creates a similar collaboration program for improving hurricane forecasting and communication of storm surges.

Tsunami warning – Authorizes NOAA to put tsunami sensors onto commercial and federal telecommunications cables as a cost-effective improvement to the tsunami detection network and study and research efforts of tsunamis. Also authorizes grant funding to survey for “paleotsunamis”— evidence of devastating waves in prehistoric times, or periods before records were kept.  By understanding past threats, communities can prepare better for future disasters. 

Satellite governance – Reforms NOAA’s satellite procurement efforts by requiring consideration of existing systems and the overall cost of integrating new ones. The reform comes after the agency experienced costly difficulties in integrating new equipment with current ground and space systems. The bill further requires NOAA to enter into a pilot program contract to assess the private sector’s capabilities in providing weather data.  

Contracting disclosures – Addresses concerns about agency employees abusing the contracting process to enrich themselves with lucrative post-retirement contracts. The bill requires the National Oceanic and Atmospheric Administration (NOAA) to annually disclose information about full-time equivalent contractors and those who formerly worked at the agency as federal employees.

The legislation, which the House must also approve before it is sent to the White House for signature, does not propose closure of any NWS facilities. Click here for a copy of H.R. 1561, as amended by the Thune substitute and also an amendment from Sen. Maria Cantwell (D-Wash.) added to the legislation. 

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I’m sitting here at my desk trying to wrap my head around a topic to write on, but not doing very well.

Yesterday was spent working at my desk in a zombie-like manner after my youngest daughter was up all night with the flu. Plus, I was busy with work, so that was a lost cause.  So I was hoping today would give me a flash of inspiration. But a couple of hours into the morning, and I’m not doing so well.

I was contemplating writing on what gift would be appropriate for my new son-in-law who happens to be a Democrat. This Bernie Sanders mug might be appropriate.

I was also contemplating writing about the IM22 case that’s set to be heard in court on December 8th. I’m hearing that the pro-IM22 people may have hired Scott Heidepreim to be their attorney. However, they might want to ask him to triple check and make sure no one in his office is representing someone else in the case.

Attorney General Marty Jackley has just announced who he appointed to a task force to address questions and concerns about Marsy’s law.  Maybe it’s just me, but I see a lot of attorneys on the panel. And I see a lot of members of law enforcement.  But remembering that the measure was introduced, campaigned on, and passed by South Dakotans for stronger rights for victims, I counted how many positions on this 25 member group represent victims of crimes.   How many are there to represent victims? One.  Krista Heeren-Graber, SD Network Against Family Violence & Sexual Assault.

Don’t get me wrong. I think the world of Marty. But speaking as someone who voted for this measure because South Dakota’s laws on victim rights had been lacking, as this group gets together to pick at the problems they see with the measure, I fear that this group’s focus might be a bit off.

Back to the salt mines….

Marsy’s Law Task Force to Convene Today

PIERRE, S.D. – Attorney General Marty Jackley announces the Marsy’s Law Task Force will convene today via conference call at 11:00 a.m. (CST).

The following have agreed to serve on the Task Force:

Bob Wilcox, Executive Director South Dakota Association of County Officials
Yvonne Taylor, Executive Director South Dakota Municipal League
Ashley McDonald, Department of Corrections
Lee Axdahl, Department of Public Safety
Jenna Howell, Department of Public Safety
Chris White, Brown County Chief Deputy States Attorney
Aaron McGowan, Minnehaha County States Attorney
Mike Moore, Beadle County States Attorney
Krista Heeren-Graber, SD Network Against Family Violence & Sexual Assault
Matt Konenkamp, Office of the Governor
Susy Starr- SD Unified Judicial System
Staci Ackerman, Executive Director SD Sheriffs’ Association
Jason Glodt, Marsy’s Law Sponsor
Jeff Gromer, Warden Minnehaha County Jail
Marshall Lovrien, Defense Attorney
Lindsey Riter-Rapp, Defense Attorney
Matt Burns, Sioux Falls Police Chief
Dave Krull, Brandon Police Chief
Pat Rotert, Spearfish Police Chief
Mike Milstead, Minnehaha County Sheriff
Jim Vlahakis, Yankton County Sheriff
Dave Bordewyk, Executive Director SD Newspaper Association
Mike Shaw, Private Attorney Insurance Industry
Margo Julius, SD Trial Lawyers Association
Dick Tiezen, Private Attorney Insurance Industry

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Rounds Urges VA to Comply with 2010 Law that Protects Veterans from Exorbitant ER Bills

WASHINGTON—U.S. Senator Mike Rounds (R-S.D.) today spoke on the Senate floor to urge the Department of Veterans Affairs (VA) to comply with the Veterans’ Emergency Care Fairness Act. This law, enacted in February 2010, is intended to make certain that veterans with private health insurance are covered by the VA if their outside insurance does not cover the full amount of non-VA emergency care. Despite its unanimous support and clear congressional intent, the VA has continued its previous policy of denying veterans’ eligible emergency room claims for the past six years. 

Recently, a Minnesota veteran sued the VA after it failed to cover the cost of his emergency treatment as the 2010 law legally requires the agency to do. The U.S. Court of Appeals for Veterans Claims ruled unanimously in April that the VA has been in violation of the Emergency Care Fairness Act since its passage. Unfortunately, the VA has appealed the decision to the U.S. Circuit Court of Appeals. 

“It is a fact that those most affected by the VA’s non-compliance with the Emergency Care Fairness Act are our elderly veterans, many of whom are living on fixed incomes and have limited resources to pay medical bills,” said Rounds during his speech. “Often, these veterans find themselves dealing with collection agencies as a result of emergency care received in the community. In an era where we know that more than 20 veterans commit suicide every day, with 65 percent of those veterans aged 50 years or older, this is unacceptable.

“Today I call on the VA to drop their appeal of the Court’s ruling and begin writing new regulations that comply with the law as Congress intended to properly reimburse our veterans for their emergency room care. I fully understand that there is a cost associated with this course of action. Taking care of our veterans and complying with the law is not a cost issue, however. It is a moral and, in this case, it is also a legal issue. Complying with the intent of the Emergency Care Fairness Act is simply the right thing to do. Should the VA agree, I stand ready to support them in their efforts to take care of our veterans and to get them medical care they need, both from the VA and in the private sector.”

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Attorney General Jackley to Form Task Force to Address Marsy’s Law 

PIERRE, S.D. – Attorney General Marty Jackley announced today the formation of a Marsy’s Law Task Force to work on the interpretation of the law and to address issues surrounding  its implementation.

“As Attorney General I am working to implement the new rights for victims including preparation of the Marsy’s card and upgrading our state notification system. I have formed this task force made up of key members of the criminal justice system to further assist in providing guidance for the implementation of Marsy’s law,” said Jackley.

The Task Force will consist of representation from law enforcement, county officials, municipal officials, prosecuting attorneys, defense attorneys, judicial system, victim representatives and Marsy’s Law sponsors.

Marsy’s Law went into effect on November 16, 2016. With the passage of the law, constitutional requirements were required to be met including victim notification cards distributed to victims via law enforcement. The Marsy’s Card outlines all the victims’ rights and the process to invoke them. The Attorney General’s Office is in the process  of distributing 100,000 copies of the card to law enforcement  statewide.

See the link below for a copy of the Marsy’s Card, which includes a full list of victims’ rights. Additional information will be added to this website link as it become available:

http://atg.sd.gov/victim/marsyslaw.aspx

Thune: A Lot of Work Yet to Do
“We have a real chance to get things done in the next Congress, and I look forward to working with my colleagues on both sides of the aisle to address the challenges facing our nation.”

WASHINGTON — U.S. Sen. John Thune (R-S.D.) today discussed the long list of accomplishments during the 114^th Congress under Republican leadership. The Republican majority worked hard to pass a balanced budget, a major energy bill, a multi-year transportation bill, a Federal Aviation Administration reauthorization, and an education reform bill, among many others. Thune also discussed the work that’s ahead for the 115^th Congress: repealing and replacing Obamacare, immigration and tax reform, addressing the national debt, and finding solutions to various other issues impacting the American people.

South Dakota Public Radio reported yesterday that the leader of a medical marijuana measure which failed to reach the ballot for this past election is going to try again. And she’s planning on adding on recreational pot use in addition to promoting medical marijuana:

Melissa Mentele is the director of New Approach South Dakota. She says marijuana use is already wide spread in South Dakota and enforcement is costing the state $800,000 dollars a year.

Mentele says the group hoped to pass medicinal use first, but consistently ran into the problem of enforcing the law.

“They had issues with regulating it and being able to do their jobs effectively,” Mentele says. “So, what we have done in our new recreational bill is, we have designated the money made by taxes for recreational cannabis sales in South Dakota to go into our general education fund for teacher pay and for pay for law enforcement. The rest of it would go to the state as it needs”

Mentele says that could be projects like infrastructure, taxpayer refunds or giving back to native communities. Mentele says she wants recreational use passed for the right reasons.

Read it all here.

Representative-elect Drew Dennert is featured in the Aberdeen American News this morning as he prepares for transitioning to serving as a state legislator:

On an average fall day, Dennert is mending fences, caring for cattle and checking that falling temperatures haven’t caused any leaks in the water tanks at the family farm north of Aberdeen, but soon his attention will be divided between home and the state Legislature.

Dennert is among the newly elected fresh faces who will be arriving in Pierre Jan. 10. At 21, he will also be the youngest on record according to the Legislative Research Council. Prior to Dennert, the youngest legislator was Aberdeen’s David Novstrup when he was elected as District 3 Representative 10 years ago. Novstrup was 23 when he was first elected in 2006.

and…

The second oldest of five children, Drew was home-schooled starting in kindergarten. His mother said the idea to home-school her son wasn’t planned; instead it was sparked by a comment made by her son’s preschool teacher.

“His teacher said, ‘I hope they don’t squelch his creativity’,” Nancy said.

“From a young age, Drew was allowed to pursue his passions,” Nancy said.

She said her son enjoyed drawing maps and studying presidents. She’s also confident he’s got a good understanding of the Constitution, the Bill of Rights and the role of government.

“I’m excited for Drew,” Nancy said.

Read it all here.