Committee on Appropriations A/V — 2018

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Call to Order and Roll Call00:00:16
Introduction of guests00:01:10
Department of the Military00:02:20
Tim Reisch, Adjutant General/Secretary introduced his staff and presented a brief overview of the department.00:02:28
Lucas Martin, LRC Analyst presented the Department of Military budget.00:12:10
Mr. Martin said 16% of the department's funds come from the general funds and 84% are federal funds. 00:12:23
The department's FY19 Governor's recommended budget request includes $4,160,659 in general funds, $21,320,151 in federal fund expenditure authority and $29,254 in other fund expenditure authority for a total of $25,510,064 and 116.4 FTE, an increase of $634,404 and 9.0 FTE.00:12:32
Page 4 - Adjutant General: The FY19 Governor's recommended budget includes $566,202 in general funds, $10,306 in federal and $29,254 in other funds for a total of $605,762 and 5.3 FTE.00:12:57
Page 5 - Prior Year Net Object Transfer: $19,233 in other fund authority was transferred within the National Guard Museum from personal services to operating expenses to align the budget. And a transfer of $7,200 in general funds from Adjutant General to Air Guard for shortfalls in utilities and personal services.00:13:33
Page 7 - Army Guard: The FY19 Governor's recommended budget includes $3,157,045 in general funds, $15,798,891 in federal funds for a total of $18,955,936 and 63.1 FTE. This is an increase of $552,772 and 9.0 FTE. This FTE request is for the Family & Service Member Support Program.00:14:34
Representative Howard question how are the 9 FTE currently being paid.00:15:10
Major General Reisch said they do not pay for it. It is a direct national level contract through the National Guard Bureau. 00:15:25
Representative Howard question on what happens when the federal funds are depleted.00:15:48
Major General Reisch responded they would need to rely on volunteers, which they already do. As far as other duties, the federal employees would likely be assigned additional duties.00:16:15
Representative Hunhoff question on making the current contract employees state employees.00:18:02
Major General Reisch responded with information on Family & Service Member Support Program.00:18:16
Senator Nesiba question on location of the new positions.00:23:23
Major General Reisch said the positions will work in the armories in Rapid City, Mitchell, Watertown or wherever there is a facility.00:23:33
Page 9 - Operating Expense Inflation: The agency requested an increase of $101,551 ($23,848 in general funds and $77,703 in federal funds) for utility expenses.00:24:09
Page 9 - Family & Soldier Support Program: The agency requested in increase in federal fund expenditure authority of $351,221 and 9 FTE for the Family & Soldier Support Program discussed earlier.00:24:30
Page 9 - Maintenance & Repair: The agency requested an increase of $929,568 ($185,914 in general funds and $743,654 in federal funds), for various modernization, sustainment and energy projects. This was not recommended by the Governor.00:24:40
Page 11 - Air Guard: The FY19 Governor's recommended budget request includes $437,412 in general funds and $5,510,954 in federal funds for a total of $5,948,366 and 48.0 FTE, an increase of $81,632.00:25:00
Page 13 - Operating Expense Inflation: The agency requested an increase of $81,632 ($20,408 in general funds and $61,224 in federal funds) for increases in utilities.00:25:22
Representative Ahlers question on the projects listed on Page 9 under Maintenance & Repair.00:25:50
Major General Reisch said it was an inflationary request to try to keep them at the 2% evaluation.00:26:20
Representative Anderson spoke to the funding appropriated last year to keep the department at 2%. 00:27:03
Senator Tidemann question on the Family & Soldier Support Program, is the current contractor fully staffed. Major General Reisch said there is one open position. 00:27:29
Department of Veterans' Affairs00:35:40
Larry Zimmerman, Secretary of the Department of Military Affairs, introduced staff and gave a brief overview of the department.00:36:42
Secretary Zimmerman briefed the Committee on Operation CARS (Calling All Returning Service Members).00:37:13
Lucas Martin, LRC Fiscal Analyst presented the department's budget. The agency share of budgeted general funds is 0.3%. 00:41:05
The department's FY19 Governor recommended budget includes $4,131,534 in general funds, $3,480,593 in federal funds and $4,223,213 in other funds for a total budget of $11,835,340 and 138.2 FTE. This is a decrease of $9,187.00:41:08
Page 4 - Veterans' Benefits and Services: The FY19 Governor's recommended budget involves $1,596,935 in general funds, $205,889 in federal funds and $61,000 in other funds for a total of $1,863,824 and 20.0 FTE.00:41:43
Page 5 - Prior Year Net Object Transfer: $29,023 in general funds was transferred from the State Veteran's Home to Veterans' Benefits and Services to cover grants to individuals, counties and non-projects; and $99,000 in other fund expenditure authority and $102,099 in federal fund expenditure authority was transferred from Veterans' Benefits and Services to the State Veterans' Home to cover overtime expenses for nurses at the State Veterans Home.00:42:07
Page 6 - Federal Contracts Shortfall: The agency requested an increase in general funds of $41,363 to cover the shortfall in the federal contract for education program representatives. The Governor did not recommend this increase.00:43:20
Representative Hunhoff question on current vacancy rate for direct staff at the State Veterans Home.00:43:38
Brad Richardson, Superintendent of State Veterans' Home said there are currently 3 nurses and 5 CNA vacancies. There is one contract RN on staff at $90,000. An employed nurse would start at $28.00/hour.00:44:20
Page 8 - State Veterans' Home: The FY19 Governor's recommended budget includes $2,534,599 in general funds, $3,2724,704 in federal funds and $4,162,213 in other funds for a total of $9,971,516 and 118.2 FTE. This is a decrease of $9,187.00:45:58
Page 9 - Prior Year Net Object Transfers (detailed earlier).00:46:32
Page 10 - Prior Year Supplemental: Increase in general funds for the State's share of the FMAP, along with the addition of 6 Medicaid eligible beds at the State Veterans' Home and a utilities adjustment of $13,446 in other funds.00:47:00
Page 10 - Operating Expense Inflation: The agency requested a net decrease in other fund expenditure authority of $9,187 which includes an increase in utility costs of $31,965 and a decrease in utility costs related to propane and fuel oil of $41,152; and a requested decrease in general funds and an increase in federal fund expenditure authority of $65,620 for an adjustment in the state's share of the FMAP. 00:47:57
Page 11 - Fund Shift (Swap) Rollup: the agency requested a fund shift from other fund expenditure authority of $316,917, to general funds and federal fund expenditure authority. Within this shift is an increase in general funds of $138,271 and $178,646 in federal fund expenditure authority. This is due to the additional Medicaid nursing beds added in FY17.00:48:27
Representative Hunhoff question on the increase in Medicaid beds.00:49:05
Secretary Zimmerman said the department added an addtional 24 beds two years ago and now have a total of 76.00:49:17
Representative Hunhoff question are the 56 projected for this year new residents. 00:49:50
Secretary Zimmerman said the home had 52 nursing and 48 residential beds. One year ago, they switched to 76 nursing and 24 residential. The 56 Medicaid would be the total of residents in the home. 00:50:05
Mr. Richardson said the 56 accounts for deaths and in-takes. The home loses approximately 35 patients/year so that number fluctuates often.00:50:36
Senator White question on the costs of caring for veterans in nursing homes and Medicaid reimbursement differences.00:51:19
Secretary Zimmerman responded to Senator White's comments.00:53:27
South Dakota's Attorney General Marty Jackley made staff introductions and FY19 Office of the Attorney General budget request as recommended by the Governor.00:58:10
Attorney General Budget Presentation - Page 100:58:15
A. FTE Request - Reduce 2 FTE in SAVIN program and add 2 FTE for Law Enforcement Training and the net change is 0.0 FTE - Page 100:59:39
B. Funding - FY19 Changes - a. Reduction of ($306,312) as recommended by the Governor and an addition of $181,192 to Reinstate Elder Abuse Authority00:59:54
II. Elder Abuse - A. Update of Progress to Date: There are 474 referrals, 23 DCI cases have been investigated, 6 cases are open, 6 convictions made since inception, and $232,476 in restitution ordered - Page 201:00:17
B. Elder and Disabled Adult Abuse - Years 2013-2017 - Chart - Page 301:00:41
III. A. DNA - Serology - Bio assignments and Assignments per examiner - Year 2007 to Year 2017 - Chart - Page 401:01:09
Attorney General Jackley indicated more and more DNA and Serology kits are processed each year and additional staff will be needed if this trend continues.01:01:15
IV. A. Methamphetamine Statistics - Chart - FY03 - FY17 - Page 501:03:35
Attorney General Jackley reported there is a methamphetamine epidemic in the State of South Dakota which is affecting families, workforce, and the budget. Senate Bill 63 will help prevent people from distributing methamphetamine. 01:03:50
B. 2017 Methamphetamine - State Map - Arrests, Grams Seized, and Number of Labs - Page 601:04:40
C. Methamphetamine Enforcement Initiative - Update - Governor and Attorney General Project - Statistics - Page 701:05:10
D. Prescription and Opioid Abuse - 2014 Age-Adjusted Drug Overdose Death Rates by State - South Dakota ranks 49th out of 51 for drug overdose death rates - Chart - Page 801:06:10
E. NCHS Data Brief - No. 273 - February 2017 - Age-adjusted drug overdose rates that were statistically higher than the national rate. - Page 901:06:25
F. Opioid Prescriptions in South Dakota - Graph - Year 2015 to Year 2017 - Page 1001:06:32
G. Accidental Overdose Deaths in South Dakota - South Dakota Department of Health - Year 2013 to Year 2016 - Chart - Page 1101:06:57
Ms. Ariel Hammerquist, Fiscal Analyst, Legislative Research Council, presented FY19 Budget Request as recommended by the Governor. - Page 101:08:55
Legal Services, Criminal Investigation, Law Enforcement Training, 911 Training, and Insurance Fraud Unit are the different budget units for the agency.01:09:05
The Office of the Attorney General budget request for FY19 is $11,510,701 in general funds, $4,022,072 in federal fund expenditure authority, and $10,588,524 in other fund expenditure authority totaling $26,121,297 and includes 188.0 FTE. - Page 301:09:50
Legal Services Budget Center - FY19 Budget Request is $5,063,150 in general funds, $832,501 in federal fund expenditure authority, and $2,555,250 in other fund expenditure authority totaling $8,450,901 and includes 70.0 FTE.01:10:16
Criminal Investigation Budget Center - The FY19 budget request is $5,949,472 in general funds, $3,189,571 in federal fund expenditure authority, and $5,584,814 in other fund expenditure authority totaling $14,723,857 and includes 98.5 FTE. - Page 901:10:25
A. Operating Expense Inflation - The agency requests an increase of $58,500 in general funds for Statewide Automated Victim Information and Notification (SAVIN) software maintenance. The Governor recommends this request. - Page 1101:10:55
1. Victim Witness Specialist - The agency requests a decrease of $81,263 in federal fund expenditure authority due to reduced federal STOP grant funding. The funding covers a Victim Witness Specialist position. The agency requests to swap the funding for this position with general funds; however, the Governor does not recommend this request. - Page 1201:11:14
2. State Automated Victim Information and Notification (SAVIN) positions - The agency requests a decrease in 2.0 FTE and ($102,357) in general funds for two positions related to the Statewide Automated Victim Information and Notification (SAVIN) platform, because they do not need to access the fund. The Governor recommends this request.01:12:03
Senator Cronin - question - were the 2.0 SAVIN FTE ever filled01:12:20
Senator Peters - question - what do the victim witness specialists do and what is the impact on the Office of the Attorney General by not having this federal funding01:13:25
Senator Peters - question - how are you going to pay for Victim Witness Specialist and what authority or funding are you using to pay for services01:14:53
3. Elder Abuse Task Force Prosecutor and 4. Elder Abuse Task Force Investigator - The Governor recommends a decrease of 1.0 FTE and $103,920 in other fund expenditure authority for a Prosecutor with the Elder Abuse Task Force. The Governor recommends a decrease of 1.0 FTE and $77,272 in other fund expenditure authority for an Investigator with the Elder Abuse Task Force. - Page 1201:15:30
Representative Bartls - question - how many Elder Abuse cases have you prosecuted and how much money have you recovered and requested additional information01:16:00
Senator Tidemann - question - what is the first step an elderly person should take after they have been a victim of crime and who do they contact01:17:54
Senator Partridge - question - how many people are in the Elder Abuse Division and what are their duties01:19:10
Senator Partridge - question - are we cancelling this Elder Abuse Division in the Office of the Attorney General by eliminating these 2.0 FTE01:20:23
Senator Cronin - question - do you have a breakdown of the Consumer Affairs Settlement Fund and requested additional information01:21:10
Representative Hunhoff - question - what has changed in the Consumer Affairs Fund and Elder Abuse Fund01:21:50
Senator Peters - question - requested clarification how the Elder Abuse Division will be funded in FY19 and requested more detailed information on the Consumer Affairs Division01:25:38
Representative Lake - question - where is the current funding source for the Elder Abuse Fund 01:27:00
Representative Anderson - commented that the Elder Abuse Fund came from the Court Automation Fund01:27:50
Representative Hunhoff - question - are there 6 Elder Abuse cases charged and pending and are these only financial cases and not physical abuse cases - Office of the Attorney General Presentation - Page 201:28:02
Senator Peters - question - why hasn't there been a reduction in travel expenses related to the Elder Abuse Fund01:29:55
Representative Anderson - question - did the Governor comment why he wants to eliminate funding for the Elder Abuse Fund01:31:40
Senator Nesiba - question - where do confiscated assets go and does the legislature have access to the Drug Control Fund and requested this information be added to board papers 01:32:15
Senator Partridge - question - what is the process for the Office of the Attorney General issue grant requests from the Drug Control Fund01:36:28
Senator Partridge - question - why is there an estimated $1,500,000 in the Drug Control Fund for FY1901:39:00
Senator Partridge - question - what are law enforcement demands to address methamphetamine01:39:45
Law Enforcement Training Budget Center- The FY19 budget request is $498,079 in general funds, $0 in federal fund authority, and $1,954,800 in other fund expenditure authority totaling $2,452,879 and includes 14.5 FTE. - Page 1401:40:48
1. Law Enforcement Training FTE - The agency requests an increase of 3.0 FTE for Law Enforcement Training. The agency has amended this request for an increase of 2 FTE now. The Governor recommends this request. - Page 1601:41:00
Senator Peters - question - how is the Office of the Attorney General going to pay for 3.0 FTE for law enforcement training01:41:12
Senator Peters - question - what is the funding for the Law Enforcement Training Fund and is this fund going to be reduced 01:42:20
Senator Partridge - question - how do you add 3.0 FTE without adding any additional funds01:43:41
Senator Peters - question - did the legislature give too much other funding expenditure authority to the Office of the Attorney General since they are absorbing the increases in FTE01:44:05
Senator Peters - question - referring to Page 15 of budget brief - Other Fund Prior Year Recap - Other Fund Expenditure Authorizations that have been fully absorbed so how are you going to absorb additional 3.0 FTE01:46:03
Representative Bartls - question - have these contracted employees been previously adjunct employees and now they are going to be state employees for insurance purposes01:48:10
Senator Tidemann - question - what are the long-term projections of the Law Enforcement Training Fund 01:49:09
Senator Tidemann - question - is the need for an additional law enforcement training class due to turnover or is it from a need for more law enforcement01:51:30
Senator Cronin - question - do technical schools have law enforcement training and should there be classes held at the technical institutes01:53:08
911 Training Budget Center - FY19 Budget request is $0 in general funds, $0 in federal fund expenditure authority, and $228,530 in other fund expenditure authority totaling $228,530 and includes 2.0 FTE. - Page 1801:57:36
Insurance Budget Unit - FY19 Budget Request is $0 in general funds, $0 in federal fund expenditure authority, and $265,130 in other fund expenditure authority totaling $265,130 and includes 3.0 FTE. - Page 2101:57:52
Senator Cronin - question - are there any 911 training funding issues for law enforcement and requested additional information01:58:30
Senator Partridge - question - there was a recommended reduction in staff for the Elder Abuse Program and needed clarification - Page 1202:00:24
Senator Tidemann - question - the Secretary of the Department of Corrections indicated they were running out of space for inmates and asked the Attorney General if surrounding states are facing the same situation.02:02:14
Senator Tidemann - question - do we put people in prison for much less offenses than other states and commented on drug distributers and drug users02:02:38
Senator Tidemann - question - are we going to have to expand the number of prisons02:04:35
Introduction of Students from Gregory, South Dakota02:06:16
Juvenile Justice Public Safety Improvement Act - Unified Judicial System - Page 102:07:00
Secretary Denny Kaemingk, Department of Corrections, made introductions and gave an update on the Juvenile Justice Reinvestment Initiative. Secretary Kaemingk said this was the third year of the (JJRI) and the effort originated when a national report indicated South Dakota was incarcerating more juveniles per capita except for the District of Columbia. A task force was formed in the Year 2014, and the (JJRI) was passed in the legislature in January 2015, and implemented in January 2016. 02:07:15
Secretary Kaemingk, DOC, believes youth should not be incarcerated at the DOC unless they are a threat to others.02:08:58
Greg Sattizahn, Court Administrator, Unified Judicial System, indicated violent juvenile crimes have decreased over the past four years. Youth on probation have also decreased.02:09:31
Youth on Probation and Violations Filed - FY14 to FY17 - Graph - Downward Trend - Page 202:10:30
Reasons Discharged from Probation - Completion Probation - Revoked, Sent to County Detention - Revoked, Sent to Department of Correction, and Revoked, Terminated Chart - FY14 to FY17 - Page 3 02:12:20
In FY17, 96% of youth completed their term of probation, up from 85% in FY14. The proportion of youth revoked to Department of Corrections continues to decrease. Youth that were on probation will be monitored for an additional three years. 02:13:23
Recidivism - Recidivism for the Unified Judicial System is defined as being an adjudicated delinquent while on probation or adjudicated delinquent or convicted of a felony in adult court within one year, two years, or three years after discharge from juvenile probation - Page 402:15:43
Almost 41% of juveniles entering probation in FY14 did not recidivate. Over two-thirds, 68%, of juveniles entering probation in FY17 did not recidivate.02:15:47
Senator Partridge - question - the State of South Dakota is receiving less federal funding and has the effects of Senate Bill 73 been financially positive02:19:06
Representative Howard - question - there is a decline in recidivism and is this an accurate picture what is happening statewide02:22:14
Juvenile Justice Public Safety Improvement Act - Department of Corrections - Page 502:27:05
Ms. Kristi Bunkers, Department of Corrections, Division of Juvenile Services, presented an overview of the Juvenile Justice Public Safety Improvement Act. 02:27:06
New Admissions - New Commitments and Recommitments to the Department of Corrections - Graph - FY14 to FY17 - Page 602:27:15
Ms. Bunkers reported 50% of youth coming to the Department of Corrections came with written findings and they are not coming because of an eligible offense.02:29:15
FY 2017 Juvenile Justice Reform Initiative Fiscal Incentive Diversion Program Submission Summary - By County - Page 702:30:08
Ms. Bunkers indicated $250,004.07 in annual funding was distributed to 26 counties in the diversion program. Pennington County has the most robust program with 600 participants. 02:30:24
Average Length of Stay in Residential Placement (Months) - In-State DOC Paid Group Care, In-State Residential Treatment, and Out-of-State Private DOC Paid - Chart - Page 802:31:41
Ms. Bunkers said research shows longer lengths of stay for low risk kids don't result in positive outcomes.02:32:25
Senator Cronin - question - what is the recidivism rate in Pennington County and why has their diversion program been so successful and requested additional information about the Pennington County diversion program02:33:18
Senator Cronin - question - what is Pennington County doing in their diversion program that other counties are not doing 02:35:10
Senator Tidemann - question - how many people are sent to the Diversion Program - referring to Pages 29 and 30 of the Juvenile Justice Oversight Council Report. Ms. Bunkers responded in FY17 there were 1,475 youth entered the diversion program and 75% of participants completed the program.02:36:24
Senator Cronin commented on Pennington County's Success and requested additional information about the diversion program success rate in every county.02:37:58
Representative Hunhoff - question - is there a best practice sharing of juvenile justice reform and how can successes of the program be promoted statewide02:38:50
Ms. Bunkers, Department of Corrections, responded the oversite committee could have an impact on promoting best practices for the diversion program statewide.02:40:07
Average Length of Stay in Residential Placement (Months) - FY14 - FY17 - Chart - Page 802:40:36
Amount Paid to Providers for Department of Corrections Performance Based Contracts - Chart - FY16 and FY17 - Chart - Page 902:40:45
Aftercare Revocations - Chart - Percent of all Youth on Aftercare - Revoked and Not Revoked - FY14 to FY17 - Chart - Page 1002:41:32
Representative Hunhoff - question - how does the Department of Corrections determine performance-based contract rates with providers 02:42:19
Representative Hunhoff - question - does the Department of Corrections negotiate performance based contracts differently than prior to the Juvenile Justice Reinvestment Initiative02:44:00
Juvenile Justice Public Safety Improvement Act - Department of Social Services - Page 1102:44:32
Ms. Tiffany Wolfgang, Department of Social Services, Division Director of Behavioral Health, presented Juvenile Justice Public Safety Improvement Act.02:44:50
Ms. Wolfgang indicated that DSS is working with UJS and DOC to implement evidence based interventions. Juvenile Justice Reinvestment Initiative Services include Functional Family Therapy, Moral Reconation Therapy, and Aggression Replacement Training - Page 1202:45:16
Senator Partridge - question - is training to change the barriers of thinking a part of Moral Reconation Therapy02:46:39
Budget Over FY18 Budget $5,710,376 and FY18 General Bill Amendment there is a reversion of $867,289 to the General Bill Amendment02:47:27
JJRI Referrals to Services - Chart - Unified Judicial System, Department of Corrections, and Other - FY16 and FY17 - Page 1302:47:50
Ms. Wolfgram indicated providers are going into the communities to educate schools and other community centers. These efforts have resulted in an increase of referrals for services.02:48:57
JJRI Clients Served - FY16 and FY17 - Chart - Increase in Services - Page 1402:49:25
Budget Overview - Juvenile Justice Reinvestment Initiative - FY18 Budget is $5,710,376. The FY18 General Bill Amendment will reduce general funds by ($867,289). - Page 1502:49:42
Representative Hunhoff - question - please explain how the agency decided to compensate providers for programs like Functional Family Therapy and are these rates different than other programs.02:50:38
Key Takeaways - FY17 - Juvenile Justice Reform Initiatives - Page 1602:51:55
Senator Tidemann - question - Budget Overview Slide - is there a general bill amendment coming forward to address the $867,000 reversion02:53:19
Secretary Kaemingk, Department of Corrections, indicated people who try to harm themselves should not be prosecuted and help is available. Secretary Kaemingk said Senate Bill 73 should not criminalize people who want to harm themselves. Help is available for mentally ill people who want to harm themselves and these people should not come to the Department of Corrections.02:55:20
Approval of the January 17, 2018 Minutes - Partridge/Howard02:57:04
Adjourn Wiik/Lake02:57:40
Announcements 02:57:50