Committee on Appropriations A/V — 2018

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Call to Order and Roll Call00:00:10
Department of Health00:01:15
Kim Malsam-Rysdon, Secretary of the Department of Health introduced her staff and presented a brief overview of the department00:01:30
Secretary Malsam-Rysdon told the Committee the department operates with a very detailed strategic plan.00:02:36
Department provides services in 67 community offices across the state and contracts with a number (700+) of providers.00:04:33
The department is requesting an increase of 4.9 FTE.00:05:15
The department's share of the budgeted general funds is 0.6%. Federal funds make up 44% of the department's budget with 9% general and 47% other.00:06:50
Jason Simmons, LRC Principal Analyst presented the department's FY19 budget request00:10:10
The department uses 0.6% of the state's budgeted general funds.00:10:30
FTE utilization has been quite high over the past few years and budgeted FTE has also been increasing.00:10:45
Page 3 - The department's total budget request is $9,043,790 in general funds, $43,476,607 in federal fund expenditure authority, $46,569,061 in other fund expenditure authority for a total of $99,089,458 with 443.8 FTE, an increase of $1,825,421 and 4.9 FTE. 00:11:00
Page 4 - Prior Year Reversions - Personal Services & Operating total $6,297 in general funds, $5,478,806 in federal and $3,375,319 in other fund expenditure authority, $8,860,822 total. The department went over the FTE budget by 5.5.00:12:20
Page 5 - Administration, Secretary of Health - This budget includes $983,930 in general funds, $1,787,646 in federal fund expenditure authority and $1,515,164 in other fund expenditure authority for a total request of $4,286,740 and 33.0 FTE, an increase $89,823 and 1.0 FTE. 00:13:10
Page 6 - Subrecipient Monitoring Accountant: The department requests an increase of $22,456 in general funds, and $67,367 in federal fund expenditure authority and 1.0 FTE to hire an Accountant III. Total request is $89,823.00:14:05
Joan Adam, Director of the Division of Administration, explained the request for a Subrecipient Monitoring Accountant as detailed on Page 7.00:14:38
Senator Peters question - does this also involve the Internal Control Program. Ms. Adam said yes. 00:15:45
Page 8 - Division of Health Systems Development and Regulation involves 6 programs.00:16:09
FY19 Budget request includes $3,765,764 in general funds, $10,619,009 in federal fund expenditure authority and $1,216,041 in other fund expenditure authority for a total of $15,600,814 and 70.0 FTE. This is an increase of $411,794. 00:16:25
Page 9 - Prior Year One-Time Transfers - There were a number of transfers out from this authority involving $83,000 in general funds, $700,000 in federal funds and $1,800,000 in other fund expenditure authority.00:17:13
Representative Hunhoff question on transfer involving the Tobacco Program.00:17:40
Secretary Malsam-Rysdon said the funds were used to address specific areas that have a high rate of smokers (pregnant women and lower income population). Representative Hunhoff requested a summary of the transfer.00:17:50
Page 10 - Current Year Base Transfer: Base transfer and conversion of $1,950,000 in other fund expenditure authority from Rural Health to $650,000 in other fund expenditure authority and $1,300,000 in federal fund expenditure authority in Family and Community Health. 00:18:38
Representative Hunhoff question the department's ability to transfer the funds.00:19:00
Secretary Malsam-Rysdon said the authority was the result of other fund authority from grants from the Hemsley Trust.00:19:14
Page 10 - Rural Family Medicine Residency Program: the department requests an increase of $179,666 in general funds and an increase of $232,128 in federal fund expenditure authority to support continued development of a rural family medicine residency track.00:20:06
Tom Martinec, Deputy Secretary and Director of the Division of Health Systems Development and Regulation explained the request was for a rural family medicine residency track in Pierre for six medical students to address health care workforce shortages in rural South Dakota.00:20:28
Representative Lake question - will this be an ongoing request for general funds.00:22:32
Mr. Martinec said this would be an ongoing request.00:23:03
Representative Lake question - where will the residents be based.00:23:09
Mr. Martinec said there are currently two family practice residency programs, one in Sioux Falls and one in Rapid City. This rural family practice residency program will be the first in South Dakota and will be located in Pierre. 00:23:25
Representative Lake question - what requirements follow the residency program.00:23:48
Mr. Martinec said there is no requirement that they stay; however, research shows they will likely stay where they receive their training.00:24:02
Representative Hunhoff question is the data based on rural or metro practices.00:24:20
Mr. Martinec said rural and specific to family practice physicians.00:24:28
Representative Hunhoff question on billing for services. 00:24:33
Ms. Malsam-Rysdon said the billings for services the residents are able to provide go back into the program to offset costs and keep general funds at a similar level.00:24:48
Representative Hunhoff question - does that billing occur from the program or the facility where they are located. Secretary Malsam-Rysdon will follow-up.00:25:50
Representative Ahlers question on how possible cuts to the Medicaid program will effect this program.00:26:08
Ms. Malsam-Rysdon said the Medicaid funds used to match the general funds are in the graduate medical education part of Medicaid. Representative Ahlers asked if it was prudent to start a program not knowing what the cuts might be. Secretary Malsam-Rysdon said they are comfortable starting the program because these funds have not been targeted for cuts. 00:26:30
Senator Tidemann question on how will the success of the program be measured.00:28:08
Mr. Martinec said the retention rates will be evaluated and reported back to the Committee. It will be the Committee's decision if the retention rates meet the Committee's standards. 00:28:30
Senator Sutton commented that this idea came from the Governor's Primary Care Task Force Oversight Committee. There will be legislators monitoring the outcome of this program. The reality is that South Dakota has a shortage of primary care physicians in rural South Dakota and the state needs to address this issue. Senator Sutton would like to see tuition reimbursement as an incentive to staying in South Dakota.00:29:05
Representative Hunhoff question - is it new to use the Medicaid fund. Secretary Malsam-Rysdon said they do not fund other residency programs in the state.00:30:16
Representative Hunhoff asked if others are using Medicare as their match for having this program in their facility. Secretary Malsam-Rysdon said yes, Medicare Graduate Medical Education (GME) is the primary funding source for residency programs across the nation. GME is capped and is not as available as it was in previous years.00:30:30
Representative Anderson question on why the current residency slots couldn't be transferred to rural areas. Secretary Malsam-Rysdon said she wasn't sure this would be an option to the degree that there is a bigger need for residencies. Ms. Malsam-Rysdon talked to the Committee about the work of the Primary Care Task Force. 00:31:34
Representative Anderson commented on the lack of requirements for staying in the area where the residents are trained.00:33:18
Page13 - Family and Community Health: The FY19 Governor's recommended budget includes $4,294,096 in general funds, $26,163,102 in federal fund expenditure authority and $6,792,353 in other fund expenditure authority for a total $37,249,551 and 191.5 FTE, an increase of $140,000 in general funds. 00:34:40
Page 14 - One Time Transfers and a Prior Year Supplemental of $140,000 in general funds to fund the Cribs for Kids Program.00:35:45
Representative Hunhoff question on the conversion of the WIC Program.00:36:05
Colleen Winter, Division Director of Family and Community Health said the electronic transfer is completed, all counties and vendors have been trained.00:36:19
Representative Hunhoff question on the transfer of $25,000 in other funds from Family and Community Health to Pharmacy.00:37:03
Ms. Malsam-Rysdon said the program did not have enough authority to spend the prescription drug monitoring program settlement funds that the Attorney General's Office received. These are one-time funds.00:37:15
Page 15 - Current Year Base Transfer (discussed earlier)00:38:13
Page 15 - Cribs for Kids - The department requests an increase of $140,000 in general funds to provide safe sleep kits to address infant mortality rates.00:38:23
Ms. Winter explained the request and the department's goal to lower the infant mortality numbers.00:38:38
Representative Karr question on what is the kit.00:41:53
Ms. Winter explained how the kit works.00:42:00
Senator White question on how many kits were distributed in FY17.00:42:39
Ms. Winter said the department distributes approximately1,400 cribs a year with expenses at approximately $138,000.00:43:00
Senator Tidemann question on where the cribs are distributed across the state.00:43:17
Ms. Winter said the kits are distributed to all community health offices across the state. In addition, Sanford and Avera distribute their own kits. The department does outreach to the Cheyenne River Sioux Tribe and Rosebud Sioux Tribal offices also distribute the kits.00:43:34
Representative Bartels question where did the money come from for last year's distribution.00:44:19
Secretary Malsam-Rysdon said last year's funding was one-time general funds.00:44:34
Page 17 - Laboratory Services: The FY19 Governor's recommended budget request includes $3,343,820 in federal fund expenditure authority and $3,495,905 in other fund expenditure authority for a total budget request of $6,839,725 and 29 FTE.00:44:54
Page 20 - Correctional Health: The FY19 Governor's recommended budget request is $24,538,973 in other fund expenditure authority and 92.9 FTE, an increase of $1,065,748 and 3.9 FTE.00:45:28
Page 24 - Tobacco Prevention: The FY19 Governor's recommended budget involves $1,563,030 in federal fund expenditure authority and $4,500,215 in other fund expenditure authority for a total of $6,063,245 and 3.0 FTE.00:46:13
Page 27 - Board of Chiropractic Examiners: The FY19 Governor's recommended budget is $112,993 in other fund expenditure authority and 1.0 FTE.00:47:00
Page 31 - Board of Dentistry: The FY19 Governor's recommended budget is $358,180 in other fund expenditure authority, an increase of $9,000 to align the budget. 00:47:25
Page 35 - Board of Hearing Aid Dispensers and Audiologists: The FY19 Governor's recommended budget is $27,030 in other fund expenditure authority, an increase of $2,100 and 0.0 FTE.00:47:52
Representative Ahlers question on why some boards are budgeted so much higher than others.00:48:14
Secretary Malsam-Rysdon said it depends on the number of practitioners.00:48:38
Page 39 - Board of Funeral Service: The FY19 Governor's recommended budget is $73,913 in other fund expendidture authority. 00:49:00
Page 42 - Board of Medical and Osteopathic Examiners: The FY19 Governor's recommended budget is $1,038,138 in other fund expenditure authority and 8.0 FTE. 00:49:19
Page 45 - Board of Nursing: The FY19 Governor's recommended budget request is $1,453,023 in other fund expenditure authority and 9.0 FTE, an increase of $111,000. 00:49:40
Senator Cronin question on the contractual services in the Board of Medical and Osteopathic Examiners budget. 00:50:00
Secretary Malsam-Rysdon will provide information.00:50:15
Page 49 - Board of Nursing Home Administrators: The FY19 Governor's recommended budget is $60,992 in other fund expenditure authority, an increase of $1,500.00:50:34
Page 52 - Board of Examiners in Optometry: The FY19 Governor's recommended budget is $71,974 in other fund expenditure authority, an increase of $2,456.00:50:50
Page 56 - Board of Pharmacy: The FY19 Governor's recommended budget is $1,158,401 in other fund expenditure authority and 6.4 FTE.00:51:13
Page 60 - Board of Podiatry Examiners: The FY19 Governor's recommended budget is $21,510 in other fund expenditure authority and 0.0 FTE.00:51:33
Page 63 - Board of Message Therapy: The FY19 Governor's recommended budget is $67,000 in other fund expenditure authority, a decrease of $8,000. 00:51:50
Page 67 - Board of Examiners for Speech Language Pathology: The FY19 Governor's recommended budget is $46,256 in other fund expenditure authority and 0.0 FTE.00:52:08
Page 70 - Board of Certified Professional Midwives: The FY19 Governor's recommended budget is $20,000 in other fund expenditure authority and 0.0 FTE.00:52:27
Ms. Malsam-Rysdon said Board appointments have been made and they are in the early stages of development00:52:29
Representative Hunhoff question has this board started operations and were these funds expended in 2017.00:52:45
Secretary Malsam-Rysdon said the board became effective in July. Appointments have been made and they are actively meeting to develop rules. An RFP was issued seeking an executive director. The other funds were private funds.00:52:55
Representative Lake question on tobacco prevention: are there metrics to measure the success of the Quit-Line campaign.00:54:00
Secretary Malsam-Rysdon said the department does have information on the success of the campaign and will provide it to the Committee. South Dakota has one of the most successful Quit-Line Programs in the country.00:54:40
Senator Tidemann question - does the department measure the effectiveness of the different tobacco programs.00:55:19
Secretary Malsam-Rysdon said the tobacco control efforts are relevant across the continuum to prevent people from starting to smoke or using other forms of tobacco. The department looks at prevention, intervention and helping people quit and helping to stay quit. The programs are routinely compared, providers are required to use an evidence based curriculum. 00:55:44
Representative Bartels question on how the department is able to spend more other fund authority than they are authorized.00:57:30
Secretary Malsam-Rysdon said the some of the tobacco funds are used for West Nile prevention efforts. This was a Legislature policy decision. 00:58:07
Senator Cronin question what is the status of the West Nile efforts.00:58:38
Secretary Malsam-Rysdon said this is an ongoing activity; however, the I-29 corridor is a hot bed area. SDSU has done some great research on mosquitoes. 00:58:48
Correctional Health01:00:10
Kim Malsam-Rysdon, Secretary of the Department of Health and Joan Adam, Director of the Division of Administration discussed Correctional Health01:02:02
Ms. Adam presented a brief overview of the Correctional Health system.01:02:30
Total budget and average cost per inmate.01:02:38
Correctional Health patient count: FY16 7,216, FY17 8,76401:02:48
Ms. Adam told the Committee healthcare is provided at 6 facilities: Two at the South Dakota State Prison (one at the Jameson Annex and one on the hill), one at the Mike Durfee Prison, one at the Women's Prison and one each at the Rapid City and Yankton work centers.01:03:15
Health care services are provided by the Department of Health; behavioral health services are provided by the Department of Social Services.01:03:38
Department of Corrections Average daily count: FY16: 3,586, FY17: 3811, FY18 budget: 3,845, FY19 recommended budget: 3,924. The number of inmates served is a cost driver. 01:04:08
Average Cost per Inmate: FY16: $5,635; FY17: $6,167, FY18: $6,105 and FY19 recommended: $6,254.01:04:50
Top 25 Inmates and those that cost over $15,000/year.01:06:00
Correctional Health served 171 inmates in FY17 that cost more than $15,000.01:06:38
258 inmates account for 5% of the population but result in 62.54% of the total cost in the outsourced services.01:06:50
Ms. Adam said 46% of the budget goes for Correctional Health clinic services (inside the prison) and 54% of the budget is for outsourced medical costs.01:07:35
Correctional Health Cost Savings - eEmergency system. Since inception of eCare, 53.21% of transfers were avoided. 01:09:00
Cost Analysis of Avoided ER visits. Total estimated savings in FY16: $414,487 and in FY17: $543,108.01:10:40
eConsultation.01:11:55
Prescription Drug System was implemented in the spring of 2016. The department has partnered with the Human Services Center in Yankton under the Department of Social Services. Hepatitis C medications are not included in the budgeted numbers for pharmacy trends. Expenses in FY17 for Hep C drugs totaled $580,397 involving 9 inmates. 01:12:55
FY17 budget shows an budget overrun of $210,000, $190,000 was one patient01:13:59
Senator Nesiba question on the $50,000/patient for Hep C drugs. Ms. Adam responded that $50,000 was on the low end. The drugs used are determined by the physician and the type of Hep C and range in price from $46,000/patient to over$100,000/patient. 01:18:40
Representative Hunhoff question on cost savings for eEmergency. Ms. Adam said the percentage was the number of ER trips avoided. 01:19:50
Representative Hunhoff question on the health of new inmates coming into the prison system. Ms. Adam referenced the number of inmates utilizing prescriptions and the patient count. 01:20:30
Representative Hunhoff question on the number of prescriptions for new inmates. Secretary Malsam-Rysdon will provide additional information.01:21:42
Representative Lake question on average daily count. Ms. Adam said the 8,764 is each person that came into Correctional Health system.01:22:15
Page 20 - Mr. Simmons, LRC Fiscal Staff, presented the FY19 Governor's recommended budget of $24,538,973 in other fund expendidture authority and 92.9 FTE. This is an increase of $1,065,748 in other fund expenditure authority and 3.9 FTE.01:23:20
Page 21 - Prior Year One-Time Transfers that were made into the Correctional Healthcare budget to cover additional costs over their appropriated budget.01:24:03
Page 21 - Prior Year Supplemental - Correctional Healthcare: One-time FY17 appropriation increase of $1,755,707 in other fund expenditure authority for correctional healthcare costs.01:24:18
Page 22 - Correctional Healthcare Costs: the department requests a net increase of $1,336,398 in other fund expenditure authority based on projected expenses, inmate growth and inflation rates. This is a net after a decrease of $324,866 in other fund expenditure authority due to a projected decrease in the average daily census of 71 inmates in the community transition program.01:24:30
Page 22 - Transfers between Programs - Pharmacy Contracts: The Governor recommends a reduction of $270,650 in other fund expenditure authority for three pharmacy contracts that will now be budgeted in the Department of Social Services.01:25:09
Page 22 - Convert Contract Correctional Health Providers to FTE: the department requests an increase of 3.9 FTE to convert medical provider contracts to FTE.01:25:28
Page 23 - The department's request for a 1.8% inflationary increase to providers was not approved.01:25:45
Ms. Adam said the $270,000 transfer in other fund authority will also show up in the Department of Social Services as an increase in personal services.01:26:15
Senator Tidemann question on the duties of the 3.9 FTE.01:26:53
Ms. Adam said the 3.9 FTE are medical providers and medical doctors. A number of contracted medical personnel prefer to be state employees and it is a cost savings to the state. 01:27:05
Senator Nesiba question - how much does the state spend on prescription drugs and is the state getting the best possible deal.01:28:18
Secretary Malsam-Rysdon said the cost of drugs is a high priority for anyone and the benefits of using the Human Services Center contract is a huge benefit for the state. The Human Services Center purchases the drugs thru a multi-state compact, which gives volume buying power resulting in lower costs. Neither Medicaid or the state employee drug plan purchases drugs through this compact.01:28:50
Representative Bartels question on FTEs. 01:30:50
Ms. Adam said in regard to FTE usage, the department will be very close if not over. This is due to the large prison population and the time it takes to train the nurses, etc.01:31:20
Representative Bartels question - is it possible to expand the medical facility at the Sioux Falls prison. 01:32:40
Ms. Adam said there could be staff efficiencies; however, because of the location of the infirmary and the clinic, adequate staff is required.01:33:09
Senator Peters question - how will the PEPL fund be affected from converting contracted employees to state employees. Secretary Malsam-Rysdon said being litigious and being successfully litigious are different and payouts from the PEPL fund for cause is a different issue.01:35:37
Representative Hunhoff question - healthcare costs by facility. Ms. Adam will provide information to the Committee. In regard to eCare, Ms. Adam said the only facilities without access to eCare are the Rapid City and Yankton work centers.01:36:30
Senator Peters question - why is eCare not available at the Rapid City or Yankton work centers. Ms. Adam said partly because the inmates transferred to work facilities generally have no major health issues. In addition, more staff would be needed if eCare was available at these locations. 24-Hour health care is not available at the Rapid City unit.01:37:13
Representative Hunhoff question - health care provided in Yankton.01:38:25
Ms. Adam said the department works closely with the hospital in Yankton as well as all hospitals in southeastern South Dakota.01:38:33
Department of Corrections01:42:00
Denny Kaemingk, Secretary of Corrections introduced staff and gave a brief overview of the department.01:44:59
Secretary Kaemingk told the Committee there are currently 21 correctional officer vacancies at the Mike Durfee State Prison. The minimum units are close to capacity and there is no room left at the Women's Prison in the Community Work Center. 01:51:00
Parole population is over 3000, increase of 334 since July of 2015. 01:51:45
South Dakota has the 19th highest incarceration rate for men in the United States, 54% non-violent, 27% drugs as the highest conviction and another 27% for other non-violent convictions. 01:52:22
South Dakota has the 3rd highest incarceration for women with 86% being non-violent. 64% with the highest conviction being drugs and 22% other non-violent.01:52:40
Ariel Hammerquist, LRC Fiscal Analyst presented the department's budget which involves 8 budget units.01:59:31
The department's budget is approximately 6.3% of the total state general funds. The department's budget amounts to 92% general, 5% federal and 3% other.01:59:57
Page 3 - FY19 Governor's recommended budget includes $101,542,590 in general funds, $5,919,538 in federal funds and $3,458,779 in other funds for a total of $110,920,907 and 756.0 FTE. This is an increase of $1,374,104 and 6.0 FTE.02:00:25
Page 5 - Prior year transfers involving Personal Services and Operating Expenses.02:00:50
Page 6 - Administration: FY19 Governor's recommended budget is $3,840,323 and 22.0 FTE.02:01:17
Page 9 - Rollup of all budget units under Adult Corrections. The FY19 Governor's recommended budget totals $91,410,444 and 702.0 FTE. This is an increase of $3,815,646 and 13.0 FTE.02:01:35
Page 12- Daily Cost Per Inmate by institution and Average Daily Count. The average daily count is projected to be 3,924 in FY19, an increase of 114 inmates over the actual FY17 and an increase of 79 inmates over the budgeted FY18.02:01:53
Page 13 - Mike Durfee State Prison: The FY19 Governor's recommended budget totals $18,607,510 and 206.0 FTE, an increase of $411,902 and a decrease of 4.0 FTE.02:02:27
Page 15 - Operating Expense Inflation: the agency requests in increase of $133,738 in general funds for utilities and $2,598 in general funds to cover the cost of physicals for new hires.02:02:47
Page 15 - Replacement Items: The agency requests an increase of $3,520 in general funds for refrigeration supplies for the cooling system at the Yankton Community Work Center.02:03:00
Page 15 - Costs for Inmate Population Changes: The agency is requesting an increase of $150,642 in general funds for food services, an increase of $57,197 in general funds for cleaning and paper supplies and an increase of $13,220 in general funds for garbage and sewer all due to increased population growth.02:03:16
Page 16 - Transfers between Programs: The agency requests a decrease of 9.0 FTE and $571,655 in general funds as part of a unit management restructure. These decreases are offset by an increase in Classification and Transfers.02:03:46
Secretary Kaemingk explained the unit management restructure.02:04:07
Page 16 - Budget Alignment: The agency requests a decrease of $16,333 in general funds and a decrease of $2,878 in federal fund expenditure authority for food services. The agency also requests an increase of $183,724 in general funds to align the budget. 02:05:30
Page 16 - Recruitment Items: The agency requests an increase of $2,000 in general funds to purchase recruitment items. 02:06:07
Secretary Kaemingk explained the recruitment items.02:06:20
Representative Hunhoff commented on the recruitment of employees in the Yankton area.02:06:52
Page 17 - Correctional Officer New Hire Pay Rate: The agency requested an increase of $149,833 in general funds to increase the pay rate of new correctional officers at Mike Durfee, Yankton Work Center and Rapid City Work Center. The Governor recommended an increase of $95,915 in general funds to increase the pay rate at the Mike Durfee Prison only.02:07:45
Secretary Kaemingk explained the new hire pay rate request.02:08:25
Representative Hunhoff question on how the starting rate was determined.02:09:20
Senator Tidemann question on the impact if the salary and FTE increases are not approved.02:10:22
Secretary Kaemingk commented on the inability of managing the population.02:10:37
Senator Tidemann question on the impact of overtime for staff and the possible safety issues.02:12:18
Secretary Kaemingk said overtime is very high. Over the last 12 months the department has averaged $152,122/month in overtime. A large portion of this overtime is at the Mike Durfee Prison.02:12:30
Representative Hunhoff question on work release prisoners coming back with contraband.02:13:18
Secretary Kaemingk said synthetic maijuana has been a problem, especially in the Yankton area. Prisoners need to be scanned; however, that process is timely and unhealthy to be done on a regular basis. 02:13:35
Senator Cronin question is the overage of 46 inmates in FY18 actual capacity or staffed capacity.02:15:45
Secretary Kaemingk said actual inmates. Staffing has not kept up with the number of inmates coming into the prison system.02:16:09
Senator Cronin question on the increased number of inmates going to minimum security, how does that compare to the penitentiary sentences.02:17:17
Secretary Kaemingk said a significant number of prisoners coming into the Jameson Unit for assessment, orientation and classification for approximately 30 days. 02:17:45
Senator Cronin question at what point does the department seek funding to build or add on to the prisons.02:18:55
Secretary Kaemingk said the prison is good, with minimal growth, in maximum security inmates, both men and women. The high-medium would be better if the low medium and CTP inmates were removed. Minimum population is causing the overcrowding. Secretary Kaemingk would prefer to use community beds rather than build more beds.02:19:39
Page 17 - Correctional Officers for Yankton Community Work Center: the agency requests an increase of 2.0 FTE and $98,294 in general funds for two new correctional officers.02:20:58
Senator Tidemann question on the ratio of officers to inmates compared to other states and what the ratio should be.02:22:00
Secretary Kaemingk said South Dakota is tied for the 6th lowest per diem in the United States, much of South Dakota's costs relate to staffing.02:22:23
Staffing levels for community work centers in South Dakota were 1:23.70 compared to the 1:7.53 average for the 5 surrounding states.02:23:28
Representative Hunhoff question on issues occurring in Nebraska. Secretary Kaemingk said some of the facilities in Nebraska are at 140% of capacity and it is his desire to not have that happen in South Dakota's prisons. 02:23:53
Page 17 - Correctional Officers for the Rapid City Work Center: The agency requests an increase of 3.0FTE and $147,441 in general funds for 3 new correctional officers at the Rapid City Community Work Center.02:25:23
Page 17 - Adult Education Literacy grant: The agency requests an increase of $5,000 in federal fund expenditure authority based on the anticipated Adult Education Literacy grant award.02:25:35
Page 18 - Salaries Shortfall in Education: The agency requests an increase of $52,899 in general funds to cover a shortfall in salaries in Education. 02:25:49
Page 18 - ReEntry Writing Course and Employability Training: The agency requests an increase of $14,000 in federal fund expenditure authority for the AEL grant.02:26:05
Page 18 - Vocational Industry Program: The agency requests an increase of 34,205 in general funds for supplies and materials in the vocational industry program.02:26:20
Page 18 - Video Security Management System: The agency requests $8,375 in general funds to expand the maintenance contract for the video security management system at Mike Durfee Prison.02:26:34
Page 20 - State Penitentiary: The FY19 Governor's recommended budget totals $24,449,251 and 304.0 FTE, a decrease of $289,727 and 5.0 FTE.02:26:48
Page 22 - Operating Expense Inflation: The agency requests an increase of $5,457 in general funds for utilities.02:27:16
Page 22 - Costs for Inmate Population Changes: The agency requests an increase of $37,766 in general funds for food services based on FY19 projected average daily population and meal rate increases.02:27:25
Senator Nesiba question on the cost of meals at the prison.02:27:44
Secretary Kaemingk explained the meal service contract. The cost increases at the facilities that have fewer inmates. Much of the work is done in house by inmates.02:27:58
Senator Peters commented on the quality of food and asked about specific dietary needs. Discussion followed on enforcing the special diets.02:32:00
Candy Snyder, Director of Operations briefed the Committee on the dietician hired to study the meals being provided within the prison. The report indicated the State Prison is meeting the dietary needs of the inmates. 02:32:25
Ms. Snyder said there are so many special diets and while they are able to put inmates on a special diet, enforcing that is an issue. 02:33:19
Discussion on special diets 02:34:55
Page 22 - Transfers between Programs: The agency requests a decrease of 8.0 FTE and $487,325 in general funds as part of the unit management restructure. These decreases are offset by an increase in the Classification and Transfers Budget. The agency also requests an increase of 1.0 FTE and $57,848 in general funds for the transfer of a maintenance position from Sequel Transition Academy to the State Prison.02:35:30
Page 23 - Other Adjustments: The agency requests a decrease of $1,767 in general funds for anticipated natural gas transport costs.02:36:06
Page 23 - Correctional Officer New Hire Pay Rate: The agency requested an increase of $196,469 in general funds to increase the pay rate of new correctional officers. The Governor did not recommend this request.02:36:21
Page 23 - Correctional Officers for SFCWC: The agency requests an increase of 2.0 FTE and $98,294 in general funds for 2 new correctional officers at the Sioux Falls Community Work center.02:36:36
Page 25 - Women's Prison: The FY19 Governor's recommended budget is $5,811,498 and 69.0 FTE, an increase of $62,550 and a decrease of 1.0 FTE.02:37:42
Page 27 - Operating Expansion Inflation: The agency requests a decrease of $9,689 in general funds for utilities based on projections.02:38:00
Page 27 - Costs for Inmate Population Changes: The agency requests an increase of $107,686 in general funds for food services and an increase of $25,000 in general funds for cleaning and paper supplies.02:38:13
Page 27 - Transfers Between Programs: The agency requests a decrease of 3.0 FTE and $177,011 in general funds as part of the unit management restructure.02:38:26
Page 27 - Correctional Officer New Hire Pay Rate: The agency requested an increase of $79,179 in general funds to increase the pay rate of new correctional officers. The Governor did not recommend this increase.02:38:40
Page 28 - AEL Grant Award: The agency requests an increase of $12,000 in federal fund expenditure authority based on the anticipated AEL grant award.02:38:57
Page 28 - Correctional Officers for Pierre Community Work Center: The agency requests an increase of 2.0 FTE and $98,294 in general funds for two new correctional officers at the Pierre Community Work Center.02:39:07
Page 28 - Inmate Wages: The agency requests $6,270 in general funds for inmate wages for the archive project at the Women's Prison.02:39:18
Page 30 - Pheasantland Industries: The FY19 Governor's recommended budget is $3,458,779 and 16.0 FTE, a decrease of $245,898.02:39:38
Secretary Kaemingk said the reduction of $245,898 was due to the prison no longer doing the data entry for the Department of Social Services. 02:40:00
Page 32 - Correctional Officer New Hire Pay Rate: The agency requested an increase of $5,598 in other fund expenditure authority to increase the pay rate. The Governor did not recommend this request.02:40:50
Page 34 - Inmate Services: The FY19 Governor's recommended budget is $33,362,522 and 48.0 FTE. This is an increase of $3,762,912 and 21.0 FTE.02:41:04
Page 35 - Prior Year Supplemental: An increase of $1,775,707 in general funds to cover a shortfall in correctional health due to the average daily count of inmates being higher than projected. The $350,000 in federal fund expenditure authority due to an increase in the Edward Byrne Memorial Justice Assistance Grand funds.02:41:30
Page 36 - Payments to State Agencies: The agency requests an increase of $1,336,398 in general funds for inmate medical expenses and an increase of $28,909 in general funds for provider inflation. The Governor recommends the request for inmate medical expenses but does not recommend the provider inflation increase.02:41:45
Page 36 - Transfers between Programs - Unit Management Restructure: The agency requests an increase of 20.5 FTE and $1,272,482 in general funds. The agency also requests a decrease of 0.5 FTE and $36,491 in general funds as part of the unit management restructure; and the agency also requests a decrease of 1.0 FTE and $62,815 in general funds to transfer the supervisory authority of the program assistant II to the Parole Board.02:42:10
Page 37 - Unit Case Manager: The agency requests an increase of $51,934 in general funds and 1.0 FTE for a unit case manager to work at the Rapid City Community Work Center.02:43:36
Page 37 - Corrections Specialist: The agency requests an increase of $56,764 in general funds and 1.0 FTE for a corrections specialist to manage the parole commnuity based housing program.02:43:52
Page 37 - Community Transition Program: The agency requests an increase of $1,144,640 in general funds for community based parolee housing for 71 parolees.02:44:09
Page 38 - Parole Services - FY19 Governor's recommended budget totals $5,720,884 and 59.0 FTE. This is an increase of $113,907 and 2.0 FTE.02:44:37
Page 41 - Transfers between Programs: The agency requests an increase of 1.0 FTE and $62,815 in general funds for a program assistant II and an increase of 0.7 FTE and $51,092 in general funds for a parole agent. The Governor recommends an increase of an additional 0.3 FTE.02:44:56
Page 41 - Parole Board Stipend Increase: The agency requested an increase of $54,000 in general funds to increase the Parole Board stipend. The Governor did not recommend this increase.02:45:39
Page 43 - Roll-up of budget units for Juvenile Corrections: The FY19 Governor's recommended budget totals $15,670,140 and 32.0 FTE. This is a decrease of $2,441,542 and 7.0 FTE.02:45:58
Page 45 - Juvenile Average Daily Count: For FY19 the projected number is 333.02:46:08
Page 46 - Juvenile Community Corrections - FY19 Governor's recommended budget is $15,670,140 and 32.0 FTE, a decrease of $1,900,655 and 3 FTE.02:46:24
Page 48 - Operating Expense Inflation - Daily Rate at Sequel Transition Academy: The agency requests an increase of $40,779 in general funds due to a higher daily rate at Sequel Transition Academy.02:46:48
Secretary Kaemingk explained the increase was due to a new contract.02:47:02
Page 48 - FMAP: The agency requests a decrease of $68,809 in general funds and an increase of $68,809 in federal fund expenditure authority due to changes in FMAP.02:47:27
Page 48- Costs for Youth Population Changes: The agency recommends a total reduction of 1 FTE and $1,103,548 in general funds and $804,258 in federal fund expenditure authority due to declining juvenile population.02:47:40
Page 49 - Transfers between Programs - Maintenance Position: the agency requests a decrease of $57,848 and 1.0 FTE for a maintenance position and a decrease of $51,092 in general funds and 0.7 FTE for a parole agent. The Governor recommends a reduction of an additional 0.3 FTE.02:48:10
Page 49 - Other Adjustments: The agency requests a decrease of $26,870 in federal fund expenditure authority.02:48:45
Page 49 - Discretionary Provider Inflation: The agency requests an increase of $147,612 in general funds and $61,786 in federal fund expenditure authority. The Governor did not recommend this request.02:48:55
Page 49 - Cost Report Provider Inflation: The Governor recommends an increase of $102,182 in general funds for cost report provider inflation for groupcare.02:49:08
Pages 51 and 53 - Youth Challenge Center and Patrick Henry Brady Academy02:49:20
Page 55 - State Treatment and Rehabilitation Academy: The total recommended budget amount is $0.00 with a decrease of $540,887 in general funds and 4.0 FTE.02:49:40
Page 57 - Closure of STAR Academy: The agency requests a decrease of 4.0 FTE and $540,887 in general funds due to the anticipated closure of STAR Academy.02:50:07
Senator Cronin requested a breakdown of STAR expenses, savings, employees, etc.02:51:02
Senator Nesiba question for Parole Board compensation.02:52:39
Secretary Kaemingk explained the responsibilities of the 9 Parole Board members. Secretary Kaemingk said the requested amount came about as a result of a survey of neighboring states.02:53:00
Representative Bartels question on how many juveniles are currently in psychiatric care.02:55:29
Kristi Bunkers, Directors of Juvenile Services said there has been a decline in the number of youth in psychiatric residential facilities as well as the number of juveniles committed to the Department of Corrections. FY18 year-to-date Medicaid eligible placement in-state, intensive residential is12.8. In-state PRTF is 21, out-of-state providers DOC paid Medicaid is13.02:56:00
Senator Tidemann question on transition plan for STAR employees. Secretary Kaemingk said the sale happened in January and the new owners take possession in May. There will be just over a month of salaries and utilities. Ms. Snyder said one FTE has been eliminated, another is going part-time, the remaining FTE will be transferred to adult corrections.02:57:45
Representative Carson question on mandatory overtime.02:59:32
Secretary Kaemingk said mandatory overtime is at the Mike Durfee Prison only.02:59:44
Warden Dooley said the mandatory overtime is 32 hours during an 8-week time period.03:00:01
Senator Nesiba question on FMAP in juvenile corrections.03:00:26
Secretary Kaemingk said the FMAP was because the individuals were in private facilities that specifically deal with psychiatric treatment. 03:00:50