The National Association of Realtors has a giant ad atop the Rapid City Journal this morning asking Senator John Thune to keep mortgage interest and other homeownership related tax deductions as part of any tax reform package:

Can’t really disagree with them, as home construction is an economic engine for our country, which we really don’t want to throw a monkey wrench into.  When we pass laws making it easier for people to afford homes, it benefits all of society.

This clip is making the rounds on the Internet, where CBS this morning interviews South Dakota’s US Senator John Thune about Roy Moore. And CBS’ Gayle King is a bit “overly complimentary…”

“The two other panelists, co-host Norah O’Donnell and another female correspondent, laughed heartily, and a somewhat embarrassed Thune seemed to take it in stride by thanking King for the compliment.

Some might wonder about the reaction to the King-Thune interview on social media in the context of objectification if the genders were reversed, however. Parenthetically, late last month, CBS This Morning fired co-host Charlie Rose over sexual harassment allegations.

Read it all here.

Speaker of the House Mark Mickelson is on the radio today noting that future state aid to counties may be tied to how much they’re looking forward to help themselves:

Future state aid to counties may be tied to what those counties are doing for themselves.

South Dakota House Speaker Mark Mickelson of Sioux Falls says he would like to see counties come up with economic development plans.

Read that here.

In the audio portion, Mickelson notes that State Government grant programs are going to start considering as a criteria – with mostly transportation grants – whether or not a formal economic development plan is in place.

I’m not familiar with any specific counties that don’t, but that seems to be a pretty strong statement to counties that with harder economic times, State Government will be more apt to help counties who are willing to help themselves.

What are your thoughts?

Senator John Thune’s Christmas card is out, in case you’d like to see it:

We’re Standing at the Doorstep of History
By Sen. John Thune

The term “historic” is a bit of a relative term, I suppose. In most cases, it’s in the eye of the beholder. “History,” on the other hand, is far more finite. It either is or it isn’t. All of the actions we take in Congress eventually become part of history, and many of them, to one degree or another, are historic. With Congress poised to pass the first major tax reform legislation in more than three decades, I believe we’re about to take one of those historic steps that will mark a critical point in America’s history, and I’m excited about what it means for South Dakotans.

The idea of reforming the U.S. tax code is not new. Since I joined the tax-writing Senate Finance Committee in 2011, we’ve held nearly 70 hearings on tax-related issues. In 2015, I chaired one of the Finance Committee’s bipartisan working groups that made recommendations on how to reform the tax code. When the Tax Cuts and Jobs Act was in the Finance Committee, we spent nearly 24 hours over several days debating and voting on 63 Democrat amendments to the bill. We spent nearly an entire legislative week debating the bill on the Senate floor, considering amendments and motions from Republicans and Democrats. I’m proud that this process has been open and that it followed regular order.

Is the Tax Cuts and Jobs Act perfect? No, it’s not. But in my experience in Congress, the legislative process very rarely, if ever, yields a perfect outcome. Whether we like it or not, that’s how our democracy works. The bill does, however, represent some of the best ideas we’ve considered over the years, and it would go a long way in providing relief to low- and middle-income Americans throughout the country.

The Senate bill would double the standard deduction, which would expand the “zero tax bracket” for low-income Americans and significantly reduce the tax burden for other filers. It would double the child tax credit – welcome news for families that are struggling to make ends meet – and it would cut taxes for taxpayers in all income groups. The bill also makes important reforms to the business side of the tax code that would spur economic growth and create more opportunities for American job creators and their employees.

The House and Senate have both passed tax reform bills that reflect the same broad principles I’ve just described. It’s now time for the two chambers to negotiate a final bill that we can pass and send to the president. I’m humbled to have been selected as one of only a handful of members to help merge the two bills and, by doing so, get us closer to the finish line. I’m looking forward to the work that’s ahead.

Hours before the Senate passed its bill on December 2, I went to the Senate floor to share some thoughts with my colleagues, and I think there are a few points worth repeating. America may have been through a rough patch lately, but she is coming back stronger than ever. America led the world in the 20th century, and this tax bill makes it clear that she is going to do the same in the 21st century. I was reminded of Ronald Reagan’s presidential ad quoting that it was morning in America again. It may not be morning yet, but the dawn is peaking over the horizon. 

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Broken Budget System Wastes Taxpayer Dollars, Hurts Military
By U.S. Sen. Mike Rounds (R-S.D.)

The federal government’s budget process hasn’t worked in more than four decades. I have been a vocal critic of the current system, which largely rubber-stamps federal spending with very little debate or discussion. I recently voted “no” on a continuing resolution, which funds the government for two weeks, through December 22, 2017. This is not a decision I take lightly, and I’d like to take this opportunity to explain what led me to this decision.

This year, working within this broken system, we gave negotiators extra time to work out a compromise on spending. Rather than getting to work on a compromise package during that period, a day before the extended deadline of Dec. 8, Congress was forced to vote on another extension because no progress had been made in the nearly three months when the original deadline was extended. This new deadline comes just before the holidays, hoping it will add pressure for Members to accept conditions they may otherwise disagree with. This is not a good policy.

A number of us have worked on proposals to modify our current budget ‘process’ – a term I use loosely – so that we can actually do the work we were sent here to do: make informed policy decisions and make certain the federal government is being a responsible steward of taxpayer dollars. Yet Congress continues this pattern of passing short-term, stopgap spending bills.

I cannot, in good conscience, lend my support to this continuing resolution that merely continues federal spending and whose lone policy change could actually end up hurting South Dakota families. If we are ever to get our spending under control, eliminate wasteful programs and provide much-needed stability for our military, we must reject the status quo.

As a member of the Senate Armed Services Committee, I am concerned about the impact continuing resolutions have on military readiness. Military leaders have repeatedly warned our committee of the dangers that these short-term, stopgap spending bills have on their ability to adequately train, equip and maintain the force.

In particular, under continuing resolutions, the Defense Department is restricted from starting new programs, which is deeply concerning in today’s rapidly-changing threat environment. One example is the mounting cyber threat to our armed forces and our civilian critical infrastructure. If we are to adequately recover readiness levels that were lost over the last eight years, as well as modernize our armed forces in this increasingly dangerous and complex world, we must give them the funding stability and certainty that continuing resolutions fail to provide.

The federal government has an obligation to the American people to be good stewards of their hard-earned dollars. We simply cannot continue to allow spending to run on auto-pilot, without a genuine opportunity for Congress to manage and debate the merits of individual programs. This practice will not change until more of us send the message that we must either repair this broken system or we get our work done on time. The American people expect no less.

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Our Way of Life
By Rep. Kristi Noem  

Our Constitution makes it clear: “the right of the people to keep and bear Arms, shall not be infringed.” For much of American history, that point was understood.

Maybe that’s why the right to bear arms is one of the least debated constitutional amendments in Supreme Court history. In fact, the landmark 2008 Heller decision was the first time in 50-plus years that the Court weighed in on the Second Amendment and examples of cases before 1939 are few and far between.

I believe that’s because for most of American history, firearms were integral to the way we lived. People understood how to use them and taught their children how to as well. In South Dakota, that way of life still exists. I’m really proud of that, and I will always fight to protect it.

This December, the House passed legislation to further secure our Second Amendment rights. More specifically, the package included the Concealed Carry Reciprocity Act, which I cosponsored. If this legislation is signed into law, those permitted to carry a concealed handgun will be able to bring it to other states that permit concealed carry. We have a similar reciprocity agreement on the books in South Dakota that lets non-residents carry in the state, but I believe that right should be protected nationwide.

This was the second major bill I’ve helped pass to protect the Second Amendment this year. Under President Obama, the Social Security Administration had overstepped its mission and discriminated against certain Americans with disabilities. More specifically, federal bureaucrats barred some Social Security beneficiaries who don’t manage their own finances from purchasing guns. I cosponsored legislation reversing this decision, which Congress passed and President Trump signed into law this February.

The Second Amendment is as important and relevant today as it was when the Founding Fathers wrote it into our Constitution more than 250 years ago.

I live just down the road from Kones Korner in Castlewood. It started as a gas station in the 1920s, but over the years the owner turned his gun hobby into an extension of the business. He now carries an inventory of more than 2,500 guns. He’s built a livelihood around the way we live in South Dakota, around the Second Amendment. And he isn’t the only one.

Hunting is a huge contributor to our state’s economy. In 2016, hunters spent $683 million in the state, supporting thousands of jobs and creating countless opportunities for folks to thrive in South Dakota. I know when our kids were little we started a hunting lodge, which I managed for a number of years. It was rewarding work that helped us make ends meet when yields were down.

I am proud of the way we live in South Dakota – of our hobbies and our traditions. Many of us grew up with a shotgun in the pickup, learning gun safety from a young age. We celebrate the liberties and freedoms we’re entitled to under the Second Amendment – constitutionally protected liberties and freedoms that should not be infringed upon.

Confronting the Realities of Another Lean Year
A column by Gov. Dennis Daugaard: 

The Capitol Building was a busy place on Dec. 5 when lawmakers came to town for the annual Budget Address. They packed the state House early that afternoon to hear about our current economic situation and my proposal for the upcoming budget year.

With revenue trending below projections, I doubt legislators were surprised when I explained we face another lean year. The projected tax revenue for this budget year will leave us $20 million short. To compound that, we have 450 more students enrolled in our schools than anticipated. This is a good problem. Higher student enrollment means our state is growing. But it’s a problem that adds another $10 million to the gap for this fiscal year.

The revenue shortfall and enrollment growth must be combined with emergency costs that will need to be covered. Unaddressed, this would leave us $34 million in the red this year. We need to fill that hole to balance in fiscal year 2018, and then adopt a balanced budget for the 2019 fiscal year.

I am proposing we fill the current year gap by reducing expenses where we are able, and using one-time cash sources, including funds from our reserves. This would still leave our reserves at a healthy level of 10 percent of our general fund spending.

For the upcoming fiscal year, I cannot recommend inflationary increases for education, Medicaid providers or state employees. Inflationary increases would cost about $58 million and we have only $32 million in new recurring revenue.

Still, although we cannot afford inflationary increases, I am proposing we dedicate the majority of new recurring revenue to those three priority areas. I am recommending the largest funding increase go to K-12 education to cover next year’s higher enrollment.

Second, I propose we complete a plan, begun two years ago, to better reimburse community-based Medicaid providers for actual costs. This will allow us to keep our promise to those who serve the most vulnerable in our state.

And for state employees, I am recommending a very modest amount to keep some employee pay, which is already lower than market, from falling even further behind.

Although the situation is not ideal, we must remember that our state has been through tougher times. It was just seven years ago that we were facing major shortfalls because of the recession and had to balance the budget with across-the-board cuts. Our situation is not as dire today and I am not calling for cuts.

Also, this experience is not unique to South Dakota. Many governors and legislatures across the country are seeing soft revenues. Recently, Montana and Oklahoma have had to call special sessions to address budget shortfalls.  Moreover, others have not been willing to confront their fiscal reality. According to Moody’s, nearly a dozen states began their fiscal year without a budget in place.

In South Dakota, we have been willing to make the difficult decisions and that has put us in an enviable position. We have structural balance, a healthy level of reserves, AAA status with all three credit rating agencies and one of the strongest pension plans in the nation. I’m very proud of these achievements. They reflect the discipline and maturity that South Dakotans expect of their elected officials. We should never take that for granted.

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A reader sent me this flyer and the accompanying letter which was sent out to public schools this fall where Democrats are using the opportunity to paint a false impression, as well as admit they plan on stealing the ideas of high school kids:

Democrats are trying to press a message that South Dakota State Government is somehow corrupt because we don’t have certain programs that Liberal think-tanks demand for good ratings in their studies, as they conveniently overlook the fact that a Harvard study has ranked South Dakota as among the least corrupt of states.

And they’re also overlooking the fact that Initiated Measure 22 was blocked by a judge on the basis that it was unconstitutional, and it was a bipartisan effort to replace the flawed IM22 measure with one that would survive a court challenge.

But the best part?  As it solicits essays, Democrats disclaim that one of their two objectives expressly notes that “A note in the online instructions will point out that South Dakota Legislators may use any or all of the ideas submitted without attribution or compensation.”

So… they’re telling high school kids up front that they’ll plagiarize any and all of their ideas, if they think there’s something good in there.

Quite the lesson they’re trying to teach.  So much for improving ethics.

Thune Introduces Bill to Reauthorize Critical Drought Information Program

“This updated legislation improves current law while complementing the subseasonal provisions of my weather bill that was enacted earlier this year, keeping South Dakotans better informed and prepared to handle potential droughts.”

WASHINGTON — U.S. Sen. John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, this week introduced legislation (S. 2200) to reauthorize the National Integrated Drought Information System (NIDIS), which provides vital drought information to farmers, ranchers, and other industries affected by severe weather conditions. This legislation would encourage important partnerships with the private sector, integrate seasonal and subseasonal drought and water forecasts, and support ongoing soil moisture monitoring to better aid farmers.

“As South Dakota farmers and ranchers recover from devastating drought conditions, it’s important that Congress stays on the ball when it comes to updating critical drought tools like NIDIS,” said Thune. “This updated legislation improves current law while complementing the subseasonal provisions of my weather bill that was enacted earlier this year, keeping South Dakotans better informed and prepared to handle potential droughts.”

NIDIS was established by Congress in 2006 with an interagency mandate to coordinate and integrate drought research and create a national drought early warning system. The early warning system utilizes new and existing partner networks to optimize the expertise of a wide range of federal, tribal, state, local, and academic partners in order to make climate and drought science readily available, easily understandable, and usable for decision makers. It would also improve the capacity of stakeholders to better monitor, forecast, plan for, and cope with the impacts of drought. The NIDIS program is a function of the National Oceanic and Atmospheric Administration, of which the Commerce Committee has jurisdiction.

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