Committee on Appropriations A/V — 2017

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Kelly Hepler, Secretary of Game, Fish & Parks00:02:16
Introduction of staff and Commissioners00:02:25
Game, Fish & Parks Overview00:03:02
Budgetary Structure00:03:24
Game, Fish & Parks Commission00:03:33
Major Initiatives00:04:26
Potential State Ownership00:04:45
Current Presence00:05:05
Potential Spearfish Canyon ownership00:05:08
Land Trade Mechanics00:05:10
Senator Cronin question regarding hunting on National Grasslands00:08:23
Representative Anderson question regarding status of land acquisition on the federal level00:09:26
Representative Anderson question on states action before federal action00:10:58
Senator White question on potential revenue from land acquisition00:11:40
Strategic Plan00:12:36
Vision: Who do we strive to be?00:13:16
Mission: What do we do?00:13:40
Values: What are our beliefs?00:14:00
Goals: How do we get there?00:14:25
Budget Briefing: GF&P receives 0.4% of general funds 00:15:10
Department utilizes the FTE's allotted to the department00:15:40
Chris Petersen, Finance Officer 00:16:10
GFP's FTE and Staffing Summary00:16:30
Department has 425 full-time positions with over 1,000 employees on payroll May - August00:16:45
Department turnover rates trend better than other state agencies 00:18:06
Representative Hunhoff question on seasonal positions/adjusted hours00:19:17
Senator Tidemann question regarding age requirement for summer employment00:21:07
Katherine Ceroll, Director of Parks & Recreation responded18 years of age00:21:35
Representative Peterson question on big game licenses00:21:50
Tony Leif, Director of the Wildlife Division spoke to wildlife management00:23:00
Chris Petersen provided further explanation of the licensing fees 00:25:39
Ms. Ceroll explained the sale of bison in Custer State Park00:27:33
Budget Request and Recommendation Summary00:28:48
FY18 Budget Recommendations:00:29:27
Department wide: Reduction in general funds for bond payments ($15,936)00:29:55
Representative Hunhoff question on what contributed to the decrease in bond payments00:30:51
Parks & Recreation Operations: Increase of $271,232 for inflationary and activity based costs00:32:35
Representative Ahlers question on increases in some regions and reductions in others00:33:35
Parks & Recreation Capital Development: Increase of $455,893 for itemized projects00:35:20
Wildlife Operations: Increase of $298,933 for inflationary and activity based costs00:36:50
Wildlife Capital Develpment: Increase of $1,259,550 for itemized projects00:37:50
Senator Tidemann question on body cameras00:38:33
Representative Bartels question on body cameras00:39:00
Tony Leif explained the body camera program and development of their program00:39:20
Senator Cronin question on number of conservation officers00:41:30
Senator Cronin question on what the cameras will be used for00:42:35
Senator Nesiba question on examples of prosecution00:45:05
Representative Karr question on body camera use in field00:47:42
Mr. Leif explained that the 5-year contract covers a number of services, including storage00:49:34
Representative Lake question on the cost of storing the video00:49:59
Snowmobile Trails: Increase of $22,000 for purchase of a snow trail groomer and 2 trail drags00:51:18
Representative Hunhoff question on budget for body cameras00:52:25
Representative Hunhoff question on minimum level of service for state parks00:53:25
Ms. Ceroll explained that each state park is unique and services vary00:54:12
FY18 Budget Adjustments: $2,307,202 or 2.6% increase00:55:12
Total FY2018 Recommended Budget: $90,902,377; $6,280,153 of General Funds00:55:40
General Funds Historical Summary00:56:39
General Funds Summary00:57:23
Division of Administration00:59:32
Senator Partridge question regarding the need for consulting contracts01:00:35
Senator Partridge question on review frequency of consulting contracts01:05:07
Representative Ahlers question on contracting for outside IT services01:06:18
Division of Wildlife Budget for FY2018 totals $48,385,44701:08:20
Wildlife Management: $9,842,87201:10:37
Habitat and Access: $18,003,98701:11:57
Fisheries: $7,734,56301:14:20
Public Service: $12,804,02501:15:27
Division of Wildlife Capital Development budget totals $3,032,13501:16:30
Aquatic Habitat: $485,00001:17:08
Hunter/Angler Access: $318,30001:17:40
Facility Maintenance and Construction: $1,684,00001:18:00
Shooting Ranges: $544,83501:18:10
Representative Bartels question on budget for facility near Watertown01:18:38
Division of Wildlife Revenue FY18 = Estimated $54,175,06001:24:07
Estimated $11,520,210 for Resident Licenses01:24:21
Estimated $18,354,850 from Nonresident Licenses01:24:29
Estimated $20,855,000 from federal funds01:24:58
Mr. Leif said an estimated $150,000 in returned licenses and fees01:25:26
Estimated $3,265,000 Miscellaneous Revenue01:25:46
Senator Tidemann question on refunds for deer licenses because of disease01:26:03
Representative Hunhoff question on projected increases for license fees01:27:00
Game and Fish Fund01:28:10
Senator Partridge question on the rationale of 25% revenue01:30:18
Mr. Leif said the 25% is there to protect the department in the case of a bad year01:30:38
Senator White question on what portion of the $30 million received from licenses is for preserves01:32:48
Senator Nesiba question on the relationship between the department and the Department of Tourism01:33:40
Katie Ceroll, Director Division of Parks and Recreation01:35:25
Estimated revenue for FY18 = $36,595,88801:35:35
Senator Cronin questions on motorboat fuel revenue01:37:40
Parks and Recreation Capital Development for FY18 totals $9,204,50001:39:40
Preventative Maintenance totals $6,621,500 or 72%01:40:02
New Development totals $217,000 or 2%01:40:05
Waterbased Development: $2,366,000 or 26%01:40:11
Representative Hunhoff requested information on the concessonaires01:41:52
Senator Tidemann question on State M&R funding01:42:15
Snowmobile Program: dedicated funding from licenses, gas tax and excise tax01:42:42
Outdoor Heritage Projects:01:43:23
Good Earth State Park01:43:30
Senator Tidemann question on ADA compliant trails01:44:40
Representative Hunhoff question on FTE at Good Earth State Park01:45:07
Custer State Park Visitor Center01:45:40
Mickelson Trail connection to Mt. Rushmore National Monument01:46:10
Senator White comments on the Good Earth State Park and question on Iowa's participation01:46:48
Senator Cronin question on proposed state park in Spearfish Canyon01:47:44
Closing comments by Secretary Hepler01:50:30
Darin Bergquist, Secretary of the Department of Transportation01:53:00
43.6% of the department's funding comes from state highway funds01:54:40
0.4% of the department's funding comes from the general fund01:54:58
Department receives $547,589 in general funds used to fund operations of the state airplane fleet01:55:00
SB 1, passed in 2015, increased the Motor Fuel Tax by 6 cents/gallon01:56:01
Motor Fuel Tax makes up 55% of the state highway fund revenue01:56:08
SB 1 also increased the Motor Vehicle Excise Tax to 4% 01:56:40
In FY16 the State Highway Fund received $315 million, $78.6 million higher than FY1401:57:25
Aeronautics: receipt of fuel tax on aviation and jet fuel and aircraft registration fees01:57:44
Railroad: leases and permits on state owned line, haying and grazing permits and interest on Railroad Trust Fund01:58:10
Senator Tidemann question on State Rail Trust Fund01:58:30
Discussion of State Rail Trust Fund01:58:50
Federal funding makes up 56.4% of the departments overall revenue01:59:45
The FAST ACT, a 5-year federal highway bill was passed in December of 201502:00:14
The FAST Act gives South Dakota a 5% increase in the first year and 2% each successive year02:00:30
Under the new bill, South Dakota retained its proportionate share of federal funding02:00:45
Because of no federal budget, federal government is operating on a continuing resolution until late April, 201702:01:03
A transfer of $70 billion in general funds was necessary to make the federal highway trust fund solvent02:01:30
Department's budget request totals $688.6 million, a decrease of $656,78902:02:38
Senator Cronin question on the reduction of 12 FTE02:03:30
Secretary Bergquist explained the department's FTE history02:03:50
71% of the department's budget is spent on construction of highways, airports, railroads02:06:22
Discussion of goals for maintaining roads and bridges02:06:55
29% of the budget is for operations - mainly winter operations02:07:28
$18.4 million was spent on winter maintenance last year02:07:45
Senator Cronin question on declining costs of fuel and construction costs02:08:58
Construction costs for the past 10 years as exceeded the inflation rate but has now seen a slight decline02:10:00
Senator Partridge question on how much of a gallon of gas goes to motor fuel tax02:11:32
Secretary Bergquist answered: 46.4 cents total, 28 cents is for the state02:11:48
Senator Partridge question on prioritizing projects with new revenue02:12:08
SB 1 allows the department to go deeper on the prioritized project list02:12:55
Representative Ahlers question on performance indicators 02:13:39
Department purchased a towplow, it is in use in southeast South Dakota02:15:50
Senator Tidemann question on towplow useage02:16:58
A proposed bill would require the department to remove snow in approximately 284 small communities02:17:48
Discussion of department staff changes and Transportation Commission resigntations02:18:50
FY18 budget request involves $388.2 million in federal funds, $299.6 million in state highway funds and $547,589 in general funds02:20:15
SB 1 also created Bridge Improvement Grant Fund02:21:10
SB 1 also added $2 million to the Economic Development grant program02:23:00
Additional revenue from SB 1 is available to assist local entities02:24:00
Senator Nesiba question on deficient bridges02:25:15
South Dakota ranks poorly on condition of bridges, primarily because of local bridges02:26:05
Senator Sutton question on the $547,000 in general funds used by the department02:27:15
Secretary Bergquist said the funds are for personal services for 3 full-time pilots, 1 full-time mechanic and 1 half-time mechanic and half-time pilot02:27:40
Senator Sutton question on the schedule for 3 full-time pilots02:28:15
Secretary Bergquist said the department is actually short 1 full-time pilot02:28:32
Senator Sutton question on the source of funding for aircraft maintenance02:29:20
Secretary Bergquist said the Board of Finance sets a rate for use of the airplanes02:29:35
Senator Cronin question on state pilots contracting for wildfire work02:30:15
Secretary Bergquist reported 3 pilots and 1 aircraft are certified for wildfire work02:30:35
One-time change in FY17 to the department budget, a reduction of $169,771 for lower than anticipated energy costs02:31:33
Two proposed bills: one regarding drones and one for the DOT Commission to make loans for local projects02:31:56
Senator White question on local governments borrowing funds from the State Highway Fund02:34:12
Senator Cronin question on the department's Intern Program02:35:28
Secretary Bergquist explained the department's efforts to recruit employees02:37:40
Senator Haverly question on industrial park road grants02:39:00
Steve Pirner, Secretary of the Department of Environment & Natural Resources02:43:25
DENR makes a difference by:02:43:55
Protecting public health and the environment02:44:01
Maintaining a business-friendly climate02:44:06
Treating everyone as our customer02:44:10
The department participated in the Legislative Performance Management Review02:44:25
Results of the review were explained.02:44:40
Three Wins for Public Health and the Environment during 2016 include:02:45:40
Drinking water02:45:45
Pipelines02:47:25
Senator Sutton question on what if a company does not pay for a clean-up02:49:04
Senator Sutton question on bonding and who compensates the landowner02:51:05
Waste Tire Cleanups02:53:08
Representative Ahlers question on tire cleanup02:54:40
Senator Peters question on tire cleanup02:55:12
FY18 Budget Briefing - DENR's share of general funds is 0.4% 02:56:00
Budget History02:57:10
Department employee turnover rate02:57:45
Senator Tidemann question on difficulty in recruitment02:58:40
Status Quo budget request except for a flip of $162,000 from federal funds to other funds03:00:35
Department has 3 informational budgets:03:01:13
Regulated Response Fund - $220,612 spent in FY1603:01:20
Regulated Response Fund ending balance on June 30, 2016 was $4,579,63703:03:00
Livestock Cleanup Fund - ending balance on June 30, 2016 was $1,329,52503:03:30
Livestock Cleanup Fund has $2 million cap, anything over that amount goes to the general fund03:04:20
Petroleum Release Compensation budget remains the same as in FY1703:04:37
Petroleum Release Compensation Fund - $435,374 spent in FY1603:04:46
Petroleum Release Compensation - Informational Budget03:04:58
In FY16 $692,575 was spent from the Petroleum Release Compensation fund03:05:03
Petroleum Release Compensation Fund - ending balance on June 30, 2016 was $2,054,58203:05:17
Status of BIT's 37 FoxPro Database Conversion Project03:05:45
Representative Ahlers question on the Conversion Project03:08:20
Department has two bills in the current Legislative Session03:08:45
Senator White commented on the department's work03:10:40
Representative Lake question on revenue sources for the Livestock Cleanup Fund03:11:50
Mr. Jeff Mehlhaff, Budget Analyst, Legislative Research Council, presented History of Bureau of Information and Telecommunications (BIT) Lean Summary Primer03:14:42
Mr. David Johnson and Mr. Alfredo Mycue, ReEngine Consulting, presented Enabling the Bureau of Information and Telecommunications to Achieve More with Less Effort03:17:44
ReEngine Staff 03:18:15
A Government - Sized Dilemma - Chart03:20:14
The Mandate for Excellence in Government 03:21:39
Continuous Improvement in Government03:22:51
Resources03:24:59
ReEngine Core Principles03:25:33
ReEngine Government Quality & Improvement Methodology03:30:50
BIT - Development's / ReEngine's Activities So Far03:31:43
Training 03:32:40
Takt Board03:33:35
BIT's Takt Board Efforts 03:35:38
Full - Kit 03:39:40
BIT - Development's Progress So Far03:41:13
Evaluative Criteria - 1 03:41:25
Evaluative Criteria - 1 03:41:45
Evaluative Criteria - 203:42:19
Evaluative Criteria - 2 - Continued03:42:28
Evaluative Criteria - 3 03:44:00
Evaluative Criteria - 3 - Continued03:44:14
Evaluative Criteria - 403:45:58
Evaluative Criteria - 4 - Continued03:46:13
Evaluative Criteria - 5 03:49:01
Evaluative Criteria - 5 - Continued03:49:10
Unique Aspects of BIT 03:52:43
Future Efforts03:54:22
BIT / ReEngine Future Efforts - Project 2 - Requirements Gathering Process03:54:30
BIT / ReEngine Future Efforts - Project 2 - Requirements Gathering, Continued03:55:32
BIT / ReEngine Future Efforts - Project 3 - Still in brainstorming stages03:57:00
BIT Future Efforts - After ReEngine03:59:06
Questions? Ideas? Follow-Ups?04:00:30
Representative Anderson - question what is BIT's responsibility to apply lean principles for code development for other state agencies04:00:35
Senator White - question do you advise BIT supervisors to implement lean principles for employee performance evaluations04:03:24
Representative Ahlers - question should all departments use lean model04:04:06
Representative Hunhoff - question how do you establish the lean model in all of state government04:05:47
Senator White - comment that teaching lean principles is important 04:06:24
Representative Hunhoff - question how do you apply lean principles that can be integrated in state government04:08:47
Senator Partridge - thanked ReEngine Consulting and BIT Commissioner and staff 04:12:50
Adjourn White/Carson04:15:55