Committee on Appropriations A/V — 2017

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Meeting called to order by Co-Chair Tidemann, Roll Call00:00:04
Introduction of Interns and Pages00:01:23
Jason Hancock, Director of the LRC00:04:20
Legislative Branch Organization Chart00:05:12
LRC Organizational Chart00:05:40
Performance Measures00:07:13
Representative Hunhoff question on customer service rating00:09:16
Senator Tidemann question on turnover exit interviews00:18:02
FY18 Budget Request Items00:18:40
Operating Expense Inflation - increase of $10,40600:18:50
Change in Employee Compensation - requested increase of $37,000, not recommended by Governor00:19:52
Other Adjustments - eliminate Postage Reimbursement Fund, a reduction of $6,000 in other spending authority00:20:25
FY16 Actual Expenditures00:21:26
Senator Partridge question re:Performance Indicators and a Lean Audit00:22:47
Senator Tidemann question regarding the remodeling cost00:25:24
Senator Tidemann asked about future remodeling plans or equipment needs00:28:05
LRC now has its own IT system and can expect equipment needs in the future00:28:10
Marty Guindon, Auditor General presented the budget request for the Legislative Audit Office00:29:28
Mr. Guindon reported that the CAFR report was issued by December 31, 201600:31:57
Auditor General's Office has 38 full-time staff; however, are currently down 4 auditors00:33:25
Budget request includes: removal of Other Funding Authority, one (1) additional FTE, and funding for compensation plan00:34:13
Legislative Audit requested an increase of $136,719, the Governor's adjusted increase is $78,36500:35:00
Request for additional FTE totaled $61,213 for personal services and $3,000 for associated operating expenses00:35:23
The request for $52,099 for the employee compensation plan was not recommended by the Governor00:36:36
Requested inflation of operating expenses 00:37:22
Senator White question on control of federal dollars00:39:05
Senator Tidemann question re:minimum qualifications for the 4 vacant positions00:41:31
Senator Cronin question on entry level auditor starting salary00:42:35
Representative Ahlers question on recruitment to Pierre00:46:20
Kristie Fiegen, Chairperson of the Public Utilities Commission00:49:20
Mission and work of the Public Utilities Commission00:50:45
FY18 budget request is the same as the Governor's recommendation00:54:27
Senator Peters question on One Call fees00:56:40
Larry Janes, Director of One Call 00:57:29
Senator Peters question regarding open meeting laws00:59:37
Representative Hunhoff question regarding the request for educational funding01:00:10
Representative Hunhoff question regarding those that do not contact One Call01:01:33
Senator White question on negotiations for utility rates going under railroads01:03:46
Chris Nelson responded that the issues could be brought to the PUC if negotiations failed01:05:00
Senator Partridge asked what is "recovering money for consumers"01:05:55
Representative Ahlers question regarding the increase in FTE 01:06:46
Shantel Krebs, Secretary of State 01:11:20
Briefing on staff and duties of the Secretary of State's Office01:12:45
Budget Comparison - identical between FY17 and FY1801:13:30
Fiscal Year Review - 53% of the office funding is federal dollars01:13:45
Overall Budget Reduction - $99,24601:14:15
Total reduction to general funds of $22,802 for Personal Services and Operating Expenses01:14:49
Election Services Statistics01:16:00
Election Training01:17:20
Ballot Question Pamphlets01:18:12
Senator Tidemann question on the 334,669 signatures01:19:42
Senator Peters question on placing petition signature sheets online01:20:40
Representative Karr question on the random 5% audit of signatures01:22:57
Secretary of State Krebs explained the process for auditing signatures01:23:05
Petition Review Document01:23:10
Senator Nesiba question on additional expenses for updating the website01:26:18
Senator Sutton question on possible changes due to constitutional carry 01:27:58
Help America Vote Act (HAVA) Federal Audit01:29:29
2015 Legislative Audit Report01:32:57
Campaign Finance Review Task Force01:34:18
New Business Online Filing System01:34:58
Business Services Workload Statistics between 11/14/16 and 12/31/1601:36:04
Business Services Statistics01:37:20
FY17 to date Late Filing Fee Revenue to the general fund - $174,85001:38:02
FY17 to date Paper Filing Fee Revenue to the general fund - $9,08001:38:03
Senator Peters question on 12/31/16 cash balance for the new fees fund01:39:50
Secretary of State Krebs will provide the requested information to Senator Peters 01:40:25
Business Services UCC Statistics01:40:50
Digitization Project01:41:45
Total Copies Revenue to the General Fund for FY16 = $58,67601:42:55
Pistol Permit Statistics - new and renewed permits totaled 30,02901:44:00
Revenue generated to the general fund in FY16 was $209,497 and $90,289 to date in FY1701:44:20
Senator Partridge question on estimated pistol permits01:44:35
Senator Tidemann question on the cost of the pistol permit card01:46:40
Three Types of Permits: Regular Permit, Enhanced Permit, Gold Card Permit01:46:52
New Concealed Carry Permit System01:49:13
Senator Nesiba question on the number of outstanding permits01:51:06
Payroll and Time Studies01:51:48
Senator Tidemann question on allocating leave 01:52:45
Senator Cronin question on redacting hours01:53:48
Accomplishments01:55:42
Secretary Krebs explained the information on filing fees01:56:05
Secretary of State Summary01:57:30
Representative Anderson requested history of the amount of funds going to the general fund01:57:59
Senator Tidemann question on the office leasing space outside of the Capitol01:59:36
Representative Karr question on auditing petition signatures02:01:25
Representative Bartels question on other fund collections and spending02:03:33
Senator Nesiba question on better voter registration02:06:45
Senator White comments on the work of the Secretary of State's Office02:08:00
Steve Barnett, State Auditor 02:10:45
Mission and overview of the State Auditor's Office02:11:35
Mr. Barnett explained Company 3028 - the "Equal Access to Our Courts" grant program02:12:20
The State Auditior's Office processed over 289,000 vouchers in FY1602:13:30
The State Auditor's Office is primarily funded with general fundsat 93%.02:15:55
Budget request is level with the FY16 budget request02:16:20
Liza Clark, Commissioner of the Bureau of Finance & Management02:21:10
Mission and introduction of office staff02:21:30
The Bureau has 36 FTE and currently has 6 vacancies02:23:19
The CAFR (state governments financial statement) had its earliest release in 20 years02:24:15
Ms. Clark voiced her concerns regarding the hiring of accountants02:25:16
State Board of Internal Control, with 7 members, is under BFM 02:25:30
Board has 3 duties: Code of Conduct, Conflicts of Interest and Guidelines for an Effective system of Internal Control 02:26:03
Code of Conduct and Conflicts of Interest have been established02:26:15
Process of Establishing and Maintaining an Effective System will take years to complete02:26:44
AAA Bond Rating02:27:33
The credit analysts stated the10% reserve is critical for the AAA rating02:28:06
Senator Partridge question on what the AAA rating means in dollars02:28:45
Commissioner Clark reported that the long-term financial plan is on the website02:29:30
Jim Terwilliger, Deputy Commissioner and Steven Kohler spoke to the long term financial plan02:29:50
Three documents on the web: General Fund Long-Term Financial Plan, 5-Year Capital Expenditure Plan, Debt Limitation & Management Policy02:30:18
Debt Limitation & Management Policy: 02:31:35
By state law the debt is limited to 1.2% of the previous years GDP02:32:00
Debt service payments are limited to no more than 4% of general fund revenue02:32:21
South Dakota is among the lowest in comparison to other states02:32:43
The General Fund Long-Term Financial Plan looks into the future, as far as FY2002:33:28
The rating agency views this plan as an excellent tool02:34:22
Steven Kohler spoke to the 5 categories that are looked at for expenditures and projected revenue/expenditures02:34:30
Each category is broken down by program looking at historical data and future projections02:35:38
Five-Year Capital Expenditure Plan: new construction, expansion and maintenance and repair02:37:25
Representative Karr question on Sales and Use Tax projection and Amazon02:39:12
Mr. Terwilliger said BFM does not have any historical information on Amazon deposits02:40:19
All taxpayer information with companies like Amazon is confidential02:41:00
Reduction of $86,384 for a software maintenance agreement02:41:55
An increase of $20,000 in general funds for an Economic Consulting contract with SDSU02:42:17
An increase of $50,000 in general funds for a municipal financial advisor 02:42:55
Reduction of $4,000,000 in sale-leaseback program02:44:30
Pool funds for employee compensation and bureau billings02:45:19
Reduction in other fund authority for various Information Budgets02:46:28