Committee on Appropriations A/V — 2018

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Call to order and Roll Call00:00:03
Department of Game, Fish & Parks (GF&P)00:01:30
Kelly Hepler, Secretary of the Department introduced his staff and gave a brief overview of the department.00:01:40
Secretary Hepler spoke to the department's work to date on a Strategic Plan.00:02:05
Secretary Hepler announced a new website.00:05:49
Secretary Hepler discussed the economic contributions of activities managed by the department00:07:15
Lucas Martin, LRC Fiscal Analyst presented the GF&P budget00:09:20
Page 2 - The FY19 budget as recommended by the Governor totals $93,133,907 and 578.9 FTE. This budget involves $6,162,707 in general funds, $27,579,962 in federal funds and $59,391,238 in other funds.00:09:25
Page 3 - Overview of the budget changes.00:09:51
Page 4 - FY17 budget, Transfers, M&R Carry Forward and Reversions00:10:00
Chris Petersen, Finance Office for GF&P presented the Division of Administration budget as found on page 5.00:10:35
Division of Administration's budget totals $4,240,733 and 27.6 FTE. This is an increase of $3,372 in general funds all associated with bond payment adjustments for the fish hatchery bonds.00:11:31
General Funds in the budget totals $963,590 with just under $796,463 designated for bond payments.00:12:12
Mr. Petersen explained the remaining General Funds and the crossover of the Finance Officer and staff between the Departments of Game, Fish & Parks Admnistration and Agriculture.00:13:06
Senator Cronin asked of the $167,000 in general funds within Administration, where do the other funds come from. Mr. Petersen stated it was nearly 60/40; 60% from Wildlife and 40% from the Parks side.00:14:11
Senator Partridge question on M&R Carry Forward on Page 4.00:16:00
Mr. Martin explained M&R funds are able to be carried forward two years for work on projects.00:16:10
Mr. Petersen explained two budget units have these funds and receive 2-year spending authority.00:16:35
Senator Partridge question is M&R funding and carry over and the planning for projects a part of the Strategic Plan00:17:50
Secretary Kepler responded yes.00:18:10
Representative Hunhoff question on carry-over funds and status of projects.00:18:40
Secretary Kepler said some of the projects are underway and others have not started. Discussion on timeliness and cost of delayed projects.00:19:00
Senator Cronin question on FY19 M&R budget request. Mr. Martin said page 15, Wildlife Informational budget. This is not state general funds.00:20:15
Mr. Martin detailed the Administration's budget breakdown and the transfer of $60,000 in other fund expenditure authority from Administration to State Parks and Recreation. (page 6).00:21:10
Mr. Petersen said the transfer of other fund expenditure authority of $60,000 from Administration to the Parks Division primarily due to the high use of the State Parks. Usage of the state parks, camping, etc. continues to increase.00:21:52
Senator Nesiba question on breakdown of 578.9 FTEs.00:23:47
Mr. Petersen explained the department's FTE usage and noted how closely the 578.9 FTE are utilized. Mr. Petersen said the department employs nearly 600 seasonal employees during the summer months. The budget has 27.6 FTE are in the Administration Division, 294.0 FTE in the Wildlife Division, 248.2 FTE in the Parks Division and 9.1 FTE in the Snowmobile Trails Program00:24:14
Senator Nesiba question on the FTE expansion in FY16.00:28:00
Mr. Petersen explained the expansions: 1.0 FTE in FY15 was for Good Earth State Park, 1.0 FTE in FY16 1.0 FTE for a Visitor Center Manager in Custer, 10.5 FTE in FY17 for the Administration, Wildlife and Parks Divisions.00:28:10
Tony Leif, Director of the Wildlife Division spoke to proposed budget00:31:45
The Wildlife budget includes Public Service, Fisheries, Wildlife Management and Habitat and Access.00:32:35
The FY19 Governor recommended budget totals $48,884,288 and 294.0 FTE. There are no general funds in this budget unit.00:33:30
Representative Hunhoff question on accountability or auditing of landowner payments and the time frame of contracts.00:36:44
Mr. Leif said the landowner commits to a certain practice/hunting. The contract is signed, the department inspects the area. The area is back-checked by GF&P officers to insure access is provided and payment is made. The department takes as many agreements as they can for access hunting and the agreements tend to be long term. The habitat development contracts tend to be short term.00:37:09
Representative Hunhoff question on private hunting preserves.00:39:35
Mr. Leif said in all agreements, the department asks the landowner to commit to utilizing their funds first and if they are generating income they cease receiving payments from the state. The department has requested reimbursement from landowners who turn the property to habitats or registered shooting areas.00:39:53
Senator Cronin question if the department tracks conservation buffer strip acreage. 00:40:53
Mr. Leif said the department does not track this program; however, it is accountable at the county level. Mr. Leif feels the program has been beneficial.00:41:15
Senator Cronin question on amount of money spent on habitat and access.00:41:44
Mr. Leif said the habitat incentive programs are intended to compliment other programs primarily the federal farm program. 00:42:40
Senator Cronin question has the department looked at access to water on habitat or leased hunting grounds, dealing with pheasants in particular.00:43:51
Mr. Leif responded pheasants do not require standing water, the impact of drought is in the form of availability of food for the young pheasants.00:45:05
Representative Anderson question on funding designated for non-meandered water issue.00:48:57
Mr. Leif said the department would use Other funds or license fee dollars would be used for this activity. Funds would come from contractual services under the management section. A number of negotiations are ongoing.00:49:14
Senator Cronin question would Wildlife need to request increasing fees to handle payments for agreements with landowners for access. 00:49:53
Mr. Leif said they are currently able to handle the payments; however, as it grows they would need to identify a revenue stream.00:50:14
Senator Partridge question on Revenue Statistics (Page 12) - Sportsman Access & Landowner Depredation Fund00:50:38
Mr. Petersen said the $6.00/license surcharge comes into the License & Fees Fund and from there the money is spent by program. Mr. Petersen will provide additional information. 00:51:21
Senator Partridge is interested in the exact amount. Mr. Petersen said annually $1.4 million is split between the two areas, Sportsmen and Depredation.00:52:49
Senator Peters question on Page 12 and 13, Revenue and Animal Damage Control00:53:15
Senator Partridge question on the breakdown of the $5.00 and $1.00 surcharges.00:53:43
Mr. Petersen said the $1.4-$1.5 million is from the $5.00 surcharge fee.00:53:53
FY17 budget maintenance items and reversions00:56:52
Page 10 - Mr. Martin detailed the Operating Expense Inflation. The agency requested a net increase in operating expense inflation of $1,500 in other fund expenditure authority. This net increase consists of a decrease of $3,000 in utility costs and an increase of $4,500 in payments made to Hunter Safety Instructors.00:57:11
Page 10 - Replacement Items - The agency also requested an increase in other fund expenditure authority of $283,250, replacing items such as marine vehicles, machinery, lab equipment, etc.00:58:24
Page 10 - Other Adjustments: The agency requested a net decrease in total expenditure authority. This decrease includes a decrease in federal fund expenditure authority of $37,475 and an increase in other fund expenditure authority of $22,845. These adjustments are to rightsize the budgets.00:58:35
Page 11 - Archery Supplies for new facility: The agency requested an increase in other fund expenditure authority of $25,000 for additional supplies for the new archery facility located in Campus West in Rapid City. An increase in federal fund expenditure authority of $1,000 and an increase in other fund expenditure authority of $2,268 for staff training in technical and supervisory activities.00:58:53
Representative Howard question on the age of the rifles being replaced.00:59:51
Mr. Leif said the lifetime of the rifle is determined by the number of rounds that have gone through it.01:00:00
Representative Hunhoff question on number of youth participating in the Hunter Safety Course.01:00:33
Mr. Leif will provide information to the Committee on the trend for the past 5 years.01:00:40
Representative Howard question on replacement items.01:00:53
Mr. Petersen explained the process for scheduling the purchase of replacement items.01:01:16
Page 14 - Condition Statement for the Game and Fish Fund01:02:02
Page 15 - Wildlife, Development and Improvement Information budget: This budget contains the M&R projects.01:02:10
Mr. Leif explained the Wildlife, Development and Improvement informational budget unit and the projects included in the budget. 01:02:30
Senator Cronin question on how the local projects are funded.01:04:36
Page 16 - The agency requested a net increase in expenditure authority of $648,210. This includes an increase in federal fund expenditure authority of $1,223,220 and a decrease in other fund expenditure authority of $575,010. These funds will be used for Development and Improvement projects throughout the state.01:05:15
Senator Cronin requested an update of M&R projects.01:06:06
Representative Hunhoff question on increase in boat license fees. Mr. Leif said no.01:06:54
Mr. Petersen explained the $70,000 boat license revenue (Page 12). The Division of Wildlife uses these funds to match the federal Dingel Johnson funds. Boat license revenue, as shown on page 20, is a more accurate summary. Actual FY17 boat licenses revenue collected was $1,707,048. 01:07:38
Ms. Katherine Ceroll, Director of Parks and Recreation spoke to the Parks and Recreation statistics. Ms. Ceroll said in 2017 South Dakota hosted 7.5 million visitors, camping unit usage increased 4% (1400 more units) and revenue was up by 4%01:09:05
Ms. Ceroll detailed the new campground with 32 sites, support facilities and expansion of boat ramps at Shade Hill Recreation Area.01:11:10
Ms. Ceroll gave details on the Legion Lake Fire.01:12:37
Representative Hunhoff question on closure of lakeside use areas. 01:13:19
Ms. Ceroll was unaware of any roadside parks being eliminated but will provide additional information on Representative Hunhoff's concern.01:13:44
Representative Howard question on the limited number of state parks in western South Dakota and the limited camping opportunities in Custer State Park.01:14:20
Ms. Ceroll responded regarding expanding camping opportunities.01:15:40
Senator Tidemann commented on the balance between private and state enterprise.01:17:35
Senator Tidemann requested additional information on Legion Lake fire.01:18:07
Ms. Ceroll gave details on repair work currently going on at Legion Lake, including 16 miles of fence that needs to be rebuilt. Crews are concentrating on the 4 key miles of boundary fence. 01:18:41
Ms. Ceroll said 860 head of buffalo are in the park and a majority have been moved to a pasture area near the coral. The herd is being monitored closely and are being fed. The bulls have moved north and they are hoping the rest of the herd can be encouraged to move north as well.01:19:15
Three burrows were put down due to burns and organ failure. The remaining 6 are being cared for by a veterinarian. 01:20:14
Senator Wiik question on requested hay donations.01:20:50
Ms. Ceroll said they had purchased hay on contract, some of the donated hay went to the ranchers in the area that also suffered losses.01:21:00
The FY19 Governor recommended budget for State Parks and Recreation is $25,235,592 and 248.2 FTE.01:21:43
Mr. Petersen detailed the $60,000 and $505,000 transfers shown on Page 18. The agency transferred $505,000 in federal fund expenditure authority to other fund expenditure authority within State Parks and Recreation. This was a one-time transfer from operating expenses to operating expenses due to increased utilization of the state parks system.01:22:30
Page 18 - Operating Expense Inflation: The agency requested an increase in other fund expenditure authority of $83,650 to align utility budgets with anticipated costs.01:24:20
Page 19 - Replacement Items: The agency requested an increase in other fund expenditure authority of $50,000 for shop equipment, office machines.01:24:30
Page 19 - Nondiscretionary Adjustments for a decrease of $124,024 in the bond payment schedules.01:24:44
Page 19 - Other Adjustments: The agency requested an increase in expenditure authority of $158,150. This increase includes an increase in federal fund expenditure authority of $9,925, and an increase of $148,225 in other fund expenditure authority. These increases are to align the budget.01:24:55
Page 19 - Item 1: New Automated Reservation System: The agency requested an increase in other fund expenditure authority of $240,000 for an automated reservation system. The current system expired in December of 2017.01:25:15
Representative Howard - question will this be an ongoing expense for the new automated reservation system.01:25:37
Ms. Ceroll said it will be an ongoing expense and it is a 10-year contract based of reservations paid.01:25:53
Mr. Petersen explained that the department did a formal RFP for the new system. The company that was currently offering the service was awarded the bid and that made the transition smooth.01:26:13
Page 20 - Item 2 - Land & Water Conservation Awards: the agency requested an increase in federal fund expenditure authority of $75,000 due to an increase in federal funds for grants awarded from the Land & Water Conservation Funds. These are funds the department awards to municipalities.01:27:00
Page 22 - State Parks & Recreation - Development and Improvement budget: $9,785,750, a net increase of $582,25001:27:30
Representative Howard stated that while she is not in favor of blocking or stopping anyone from visiting out state parks, she feels state residents should receive priority when reserving camping sites at South Dakota State Parks.01:28:31
Representative Bartels question on last year's request for a project at Lake Pelican.01:29:15
Ms. Ceroll said the department decided to not budget education within the proposed projects. The work on the shop and office is moving forward with a ground-breaking set for spring of 2018.01:29:40
Representative Karr question on changing reservation requirements for Custer State Park.01:30:30
Mr. Petersen said it is for the facilities located within the state park boundaries01:30:32
Ms. Ceroll said the department has not discussed changing Custer State Park reservation requirements. 01:30:50
Representative Howard question on Star Academy dorm remodel.01:31:20
Ms. Ceroll said this is the academy for girls, not the academy that recently sold. Mr. Petersen added that it is for the facilities located within Custer State Park boundaries, separate and exclusive from the facility recently sold.01:31:33
Representative Karr question on new reservation system.01:32:02
Ms. Ceroll said the contract had expired, however; because the new contract is with the same provider, transition was seamless and the system is up and running. The new site is simplified and user friendly. Ms. Ceroll gave the Committee details on camping reservations and placing payment. 01:32:53
Senator Cronin question on "holding" campsites.01:35:14
Ms. Ceroll explained the process for payment.01:35:35
Page 25 - Snowmobile Trails budget: $1,307,199 and 9.1 FTE. This is a decrease of $22,000 for a snow groomer.01:35:57
Senator Cronin question on the balance of bond payments.01:37:05
Mr. Petersen said the decrease of $124,000 in general funds in the Parks Division is associated with bond payments. There are approximately $3.3 million in bonds in Custer State Park done in 2007 and again in 2015. In most cases, early payoff comes 10 years in, several have not reached that mark as of yet.01:37:25
Senator Cronin question does South Dakota's AAA bond rating help.01:39:05
Mr. Petersen said the AAA rating does help; however, the department's bonds are a small portion of the bonds across state government.01:39:25
Department of Agriculture01:40:40
Mike Jaspers, Secretary of the Department of Agriculture introduced his staff and gave a brief presentation of the department.01:40:52
Debbie Trapp, Director of the Brand Board briefed the Committee on the Brand Board and proposed legislation.01:44:29
Primarily funded with Other Funds01:46:30
History of FTE utilization01:46:39
Representative Hunhoff requested that the Brand Board bring financial reports and an update on the communications between the DCI and the Brand Board.01:46:45
Jason Simmons, Principal Fiscal Analyst with LRC presented the budget for the Department of Agriculture. The department uses 0.5% of state general funds and is primarily funded with Other funds. 01:47:31
Page 3 - Total budget for the department: The FY19 Governor's recommended budget is $7,439,992 in general funds, $6,977,851 in federal funds and $36,040,958 in other funds. This is a total budget of $50,458,801 and 223.9 FTE, an increase of $1,307,539.01:48:16
Page 4 - Major Items Summary: ADRDL Bond Payment and Budget Alignments. In FY17 there were One-Time Transfers, Unutilized FTEs of 17.7, $131,220 in general funds reverted, $839,935 in federal funds in unused authority and $1,147,359 in other funds that were overutilized, much of which deals with Boards and Commissions. Mr. Simmons said by statute they are allowed to overspend this appropriation.01:49:05
Page 5 - Administration: This budget unit has two programs: Administration and Office of Ag Policy. The FY19 Governor's recommended budget totals $894,966 in general funds, $62,086 in federal funds, $172,062 in other fund for a total of $1,129,114 and 9.5 FTE with no changes.01:50:08
Mr. Petersen explained the One Time Transfer of $46,933 in personal services general funds from the Division of Agriculture Services and Assistance to the Division of the Secretary was to correct a budget imbalance.01:51:38
Representative Hunhoff question why was the travel budget so high in FY17.01:52:56
Mr. Petersen referred to travel expenditures detailed on Page 5. The department has budgeted more than expended and the excess may be used for supplies and etc. in the Secretariat Division.01:53:18
Page 8 - Agricultural Services and Assistance: This budget unit has 5 programs. The FY19 Governor's recommended budget is $2,312,596 in general funds, $3,655,341 in federal funds and $3,160,582 in other funds for a total of $9,128,519 and 79.9 FTE. 01:54:25
Page 9 - There were 3 one-time transfers in FY17: $46,933 in personal services general funds from the Division of Agriculture Services & Assistance to the Secretary, $30,000 in federal fund expenditure authority to other fund expenditure authority within Ag Services and Assistance and $225,000 in federal fund expenditure authority from Ag Development to Ag Services.01:55:25
Mr. Petersen said the $46,933 transfer was to correct a budget imbalance, the $30,000 was to cover additional expenses for the rodent control program and the $225,000 was to cover additional lab fees in the feed and remedy program. 01:56:33
Representative Hunhoff question on the increases, were they not planned. Mr. Petersen said the anticipated volume and timing was not anticipated. 01:59:30
Representative Carson question on rodent control.02:00:25
Mr. Petersen said the department provides the rodent control material to the landowners.02:00:48
Representative Carson question on control of the rodent control materials on private land.02:01:20
Secretary Jaspers said yes, it is covered under the Regulatory Division. The applicators must be licensed by the department.02:01:35
Page 12 - Agriculture Development and Promotion: This budget is split into two divisions: Agriculture Development and Resource Conservation and Forestry. There are 11 programs within this budget. The Governor's FY19 recommended budget is $1,781,994 in general funds, $1,522,331 in federal funds and $778,676 in other funds for a total budget of $4,083,001 and 29.0 FTE. There are no changes from FY18.02:01:57
Page 14 - FY17 One-Time transfers: $225,000 in federal fund expenditure authority (discussed earlier) and $10,000 in other fund personal services expenditure authority from Ag Development to State Fair due to higher than anticipated utilization of the State Fair grounds.02:03:12
Secretary Jaspers spoke to the $10,000 transfer to the State Fair and increased usage of the State Fair grounds. There were 254 event days during calendar year 2017, a dramatic increase from previous years.02:04:05
Page 18 - Animal Industry Board budget: The FY19 Governor's recommendation is $2,126,897 in general funds, $1,738,093 in federal fund expenditure authority and $3,624,406 in other fund expenditure authority for a total of $7,489,396 and 41.0 FTE. This is an increase of $3,345,464 in other fund expenditure authority.02:04:40
Page 19 - Item A - ADRDL Bond Payment: an increase of $3,345,464 in other fund expenditure authority.02:05:20
Senator White question on anticipated tax revenue.02:05:58
Dr. Oedekoven, State Veterinarian and Executive Secretary of the Animal Industry Board and Mr. Petersen said the $3,345,464 is the FY19 scheduled payment on the ADRDL bond. There will be an amendment to the current general bill to make a like payment from the FY18 budget. Revenue will be sufficient to make payment.02:06:35
Senator Tidemann commented that the bond is actually a shorter term because of the good bond ratings.02:08:40
Page 22 - American Dairy Association informational budget - The FY19 Governor recommended budget totals $2,712,220 in other funds, a decrease of $168,980 to align the budget. 02:09:15
Page 25 - Wheat Commission informational budget - The FY19 Governor's recommended budget totals $1,578,180 in other funds and 3 FTE, and a decrease in other funds $325,192 to align the budget.02:10:12
Page 28 - Oilseeds Council informational budget - The FY19 Governor's recommended budget is $389,615 in other funds and 0.0 FTE. This is a decrease of $5,900 to align the budget.02:10:40
Page 31 - Soybean Research and Promotion Council informational budget - The FY19 Governor's recommended budget is $11,049,132 and 8.0 FTE.02:11:00
Page 34 - Brand Board informational budget - The FY19 Governor's recommended budget is $2,303,145 in other funds and 33.0 FTE. This is an increase of $88,323 in other funds to align the budget as follows: An increase of $50,698 in part time employee salaries and benefits as additional inspectors, an increase of $5,600 to cover travel costs for the additional inspectors and an increase of $32,025 for contractual services. 02:11:30
Senator Tidemann question on long range trend for wheat production and revenue going to the Commission.02:12:05
Secretary Jaspers said the wheat check-off is based on dollars vs. bushels so the drop in wheat prices is the biggest factor. There has also been a gradual drop in wheat acres over time; however, that has stabilized.02:12:28
Page 37 - Corn Utilization Council informational budget- The FY19 Governor's recommended budget totals $6,959,325 and 1 FTE. This is a decrease of $1,625,014 in other funds to align the budget.02:13:20
Page 40 - Board of Veterinary Medical Examiners informational budget - The FY19 Governor's recommended budget is $59,279 in other funds and no FTE.02:13:50
Representative Anderson questioned salaries and benefits with no FTE.02:14:11
Dr. Oedekoven said the salaries are for the four Board members to attend meetings.02:14:25
Page 43 - Pulse Crops informational budget - The FY19 Governor's recommended budget totals $28,400 in other funds and no FTE. This is a decrease of $1,162 to align the budget.02:14:53
Page 46 - State Fair - The FY19 Governor's recommended budget is $323,539 in general funds and $3,225,936 in other funds for a total of $3,549,475 and 19.5 FTE.02:15:31
Page 47 - Prior Year One-Time Transfer of $10,000 in other fund personal services expenditure authority from Ag Development to State Fair due to higher than anticipated utilization of the State Fair grounds.02:16:12
Representative Hunhoff question on better aligning budgets.02:16:35
Mr. Simmons said this is typical for Boards and Commissions. It flucuates based on commodity prices and production. A few years ago they were increasing budgets.02:16:50
Senator Tidemann complimented the department on the State Fair attendance but commented on the need for maintenance in certain areas.02:17:10
Secretary Jaspers said the department is aware of the need and is working with the Bureau of Administration on some of the maintenance needs.02:18:35
Representative Karr question on the increased State Fair capital outlay.02:21:20
Mr. Petersen commented that this Capital Outlay budget is hold-over budget authority that allows the State Fair to fund projects with department budget and not have to use Statewide M&R funds.02:21:40
Senator White spoke to the success of the State Fair operation, the increased activity at the State Fair grounds and highlighted a national event that is scheduled. Senator White also introduced Peggy Besch, State Fair Manager.02:21:42
Representative Bartels question on Ag Development and Promotion Program.02:25:45
Secretary Jaspers briefed the Committee on the loans made from the Ag Development and Promotion Program.02:26:25
Representative Hunhoff requested the department to provide a breakdown of the loans.02:28:04
Senator Tidemann question on the department's efforts to meet the cow supply for the Lake Norden cheese factory.02:28:25
Secretary Jaspers responded that there are a number of dairy producers wanting to come to South Dakota or expanding here. The department is not concerned about the number of cattle but more about good sites for the livestock that may come to South Dakota. The department is using the County Analysis Program to assist in these efforts evaluating roads, local zoning, water, etc.02:28:52
Department of Environment & Natural Resources02:33:35
Steve Pirner, Secretary of the department introduced his staff and presented a brief overview of the department. Secretary Pirner said the department continues to bring a status-quo budget; however, the department is seeing a decrease in federal funds as well as fee revenue. 02:33:48
Secretary Pirner told the Committee in order to bring a status-quo budget, the department developed a 3-prong plan. First, they held some of their vacant positions vacant. Seventy-five percent of the budget goes to personnel. Secondly, the department looked at the need to increase some of the fees. Third, the department looked at activities they can give back to the EPA if federal funding doesn't come through.02:36:10
Page 1 - Mr. Simmons reported that the department uses 0.4% of state budgeted general funds. The department's funds are relatively equal between general at 27%, federal at 34% and other at 39%.02:39:20
Page 2 - The department's budget involves 6 programs. The agency's FY19 Governor's recommended budget is $6,634,641 in general funds, $8,342,796 in federal funds and $9,618,643 in other funds for a total of $24,596,080 and 180.5 FTE.02:40:18
Page 3- FY17 reversions and unutilized FTE: There were 6.5 unutilized FTE and reversions of: $9,051 in general funds, $904,561 in federal funds and $4,235,737 in other funds for a total reversion of $5,149,349. 02:41:28
Page 4 - Financial and Technical Assistance: The FY19 Governor's recommended budget is $2,560,043 in general funds, $2,317,958 in federal funds and $1,032,802 in other funds for a total of $5,910,803 and 56.5 FTE.02:42:30
Page 5 - No transfers from prior years.02:43:25
Representative Howard question on "giving programs back to the federal government" and President Trumps desire to eliminate regulations.02:43:49
Secretary Pirner does not see any cost savings from rolling back regulations because the regulations were implemented late in President Obama's term. SB 25 has 3 parts regarding fees. Fees are based on the 1990 census so it is proposed to raise it to the current census. The other deals with establishing fees for areas where there currently is no fee. Without the fee, South Dakota will not have the resources to handle some of the programs. 02:44:46
Representative Karr question on increases in Operating Expenses shown on Page 2.02:48:56
Representative Anderson explained it was comparing actual to budgeted and explained when there are no spills the money is not spent. Rob Green, Finance Officer explained that the department budgets more that they may spend in order to have the funding in the case of an environment spill.02:49:35
Secretary Pirner explained the various grants.02:51:50
Representative Ahlers question on informational budgets constitutionally allowed to overspend. Would that work with the Contractual Services line item?02:55:00
Secretary Pirner said informational budgets are allowed to over spend; however, the department has established an initial amount for the budget when created. Instead of coming to the Committee with a budget change every year, the department established a budgeted amount.02:55:38
Senator Nesiba questions on the condition of the Big Sioux River.02:57:05
The inspections are ongoing and the report is released every 2 years or upon request. The state does not really have any liability.02:57:20
Secretary Pirner said the department runs an ambient surface water quality monitoring network statewide with a station on all major rivers. Data is collected on a monthly average and that information goes into a state and a federal EPA data base. Every 2 years they are required to give a report on all the collected data and identify those bodies of water that are meeting or not meeting those standards. That report is public information.02:57:51
Senator Nesiba question on usefulness of a report during the summer telling citizens of the river's condition. Secretary Pirner said the department is looking at developing a water quality map; however, it will be a long process.03:02:19
Page 7 - Environmental Services - The FY19 Governor's recommended budget is $4,074,598 in general funds, $6,024,838 in federal funds and $3,486,628 in other funds for a total of $13,586,064 and 119.0 FTE. 03:03:57
Page 18 - Regulated Response Fund Informational Budget - The FY19 Governor's recommended budget totals $1,750,001 and 0.0 FTE.03:05:20
Page 19 - Reversions: This fund had $1,300,897 in other funds reverted at the end of FY17.03:05:48
Page 21 - Livestock Cleanup Fund - The FY19 Governor's recommended budget is $765,000 in other funds and 0.0 FTE.03:06:30
Page 22 - 100% of the FY17 appropriation was reverted.03:06:52
Page 24 - Petroleum Release Compensation - The FY19 Governor's recommended budget is $484,212 in other funds and 5.0 FTE.03:07:14
Page 27 - Petroleum Release Compensation Information Budget - The FY19 Governor's recommended budget is $2,100,000 in other funds and 0.0 FTE.03:07:45
Senator Cronin question on Petroleum Release Compensation Fund.03:08:15
Secretary Pirner said the department has yet to receive the new regulations; however, the program will be nothing like it was when it first started. The department is unsure of any increased costs. The Governor has slated a $1.3 million transfer to general funds. The Petroleum Release Compensation fund will act as the insurance agent for all tank owners. 03:09:05
Senator Cronin question on the commitment that if the fund drops below, there would be money available to honor the insurance payers. 03:09:54
Secretary Pirner said the fund has a constant source of revenue and the distribution formula is in state law. 03:11:12
Senator White question on the gold mine site that needs to be reclaimed. 03:15:00
Secretary Pirner detailed the state's efforts at the Brohm mining site. EPA is now in charge of the cleanup with South Dakota providing 10% of the match. The EPA spends approximately $2 million per year on water treatment at the site.03:15:20
Representative Hunhoff question on planning for retirement of department employees.03:19:20
Secretary Pirner commented on the longevity of his staff and their expertise.03:20:00
Motion to Adjourn: Carson/Partridge03:24:00