Committee on Appropriations A/V — 2018

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Call to Order and Roll Call00:00:03
Department of Social Services00:01:35
Lynne Valenti, Department Secretary presented answers to the questions posed at the hearing on February 5th.00:01:48
Question 1: Functions within the finance office, list of accounting band positions and requirements for the positions.00:02:22
Senator Peters requested the department to provide an organization chart of the finance division.00:03:08
Representative Hunhoff question on 7 FTE in the HSC business office.00:03:42
Laurie Mikkonen, Chief Financial Officer with the department said while some of the accounting functions are done at the central office and others at the HSC business office, the 7 FTE in question are located at the HSC business office. 00:04:00
Question 2: Who is served by the Victims' Services Program, new activities, goals?00:04:50
Representative Hunhoff how many Program Specialists are currently in the program. Secretary Valenti said one.00:08:49
Senator Peters asked what will happen to the VOCA program if the federal funds go away.00:09:17
Secretary Valenti said at this time they do not see the funding going away; however, if the funding did end they would review the program and the need, but without funding, there would be no program. 00:09:35
Representative Hunhoff asked if the federal funding has increased or decreased over time.00:10:00
Secretary Valenti said the VOCA grant has consistently increased with a significant increase in the past year.00:10:15
Senator Peters asked how big is the program, does the state provide any kind of match for the federal funding.00:10:38
Brenda Tidball-Zeltinger, Deputy Secretary for the department said the Victim's Services Unit budget is $8.9 million, a majority of which is federal with some state funds. Each grant has match requirements; however, most are inkind. 00:11:34
Question 3: Clarify your approach for base funding the Eligibility & Enrollment System.00:13:05
Senator Peters asked how the decision was made to go lump sum rather than an appropriation.00:13:36
Ms. Tidball-Zeltinger said most technology projects are typically part of the budget, and spread over several years. 00:14:28
Question 4: What are the administration costs versus the service costs of weatherization funds?00:15:40
Senator Peters requested a breakdown of the LIEAP (Low Income Energy Assistance Program).00:16:46
Question 5: Average length of eligibility for children on Medicaid.00:17:40
Representative Hunhoff asked if the children ever come back on the Program.00:17:51
Ms. Tidball-Zeltinger said they see children move back and forth between Title 19 and CHIP.00:18:22
Representative Hunhoff asked how children qualify for CHIP and or Title 19.00:19:07
Ms. Tidball-Zeltinger said it is primarily income or insurance status.00:19:22
Representative Hunhoff asked if the parents ever qualify for Medicaid.00:20:01
Ms. Tidball-Zeltinger said CHIP is children only.00:20:10
Senator Peters asked how the grant is doing when Congress did not authorize the block grant last fall. 00:20:36
Ms. Tidball-Zeltinger said the continuing resolution that was recently passed did have a 6-year reauthorization for CHIP and extended the additional match through 2019.00:20:56
Senator Peters requested more information on the extended match and other details of this grant. The department was asked to explain the CHIP Program graph.00:21:37
Senator Partridge requested a briefing on the CHIP Program00:21:55
Ms. Tidball-Zeltinger explained the graph: Children's Health Insurance Program (CHIP)00:24:20
Senator Partridge asked how many kids are in Title 19 and how many are in CHIP.00:26:50
Ms. Tidball-Zeltinger reported15,570 in FY17 on CHIP, 66,727 Title 19 Children and 37,300 Title 19 Adults.00:27:55
Question 6: 3-year history of expenditures for the Big Four and Top 25 claimants. (Data on the Top 25 claimants will be provided later.)00:28:40
Question 7: What would be the enhancements to the Health Home request?00:29:23
Representative Hunhoff asked if performance indicators for Health Homes had changed, what qualifies you as a High Performing Health Home.00:29:50
Senator Partridge question on performance indicators for Health Homes.00:30:16
Ms. Tidball-Zeltinger said providers receive a per member/per month payment based on the tier the recipient falls under. Patients with high costs receive a higher per member/per month payment. Health homes are required to provide data on health outcomes, etc. 00:30:32
Senator Peters asked how many people on Medicaid are not participating in the Health Home Program. Secretary Valenti said there is a great deal of data on the department's website.00:32:53
Ms. Tidball-Zeltinger said 75-79% are participating. In order to get more people on the program, more health homes are needed.00:33:23
Senator Peters asked how people qualify for a Health Home.00:34:25
Ms. Tidball-Zeltinger said health home individuals are those with chronic conditions, mental illness or those at risk for another chronic condition. They are identified by claims history and other information.00:34:50
Representative Hunhoff asked if the data was combined behavioral health and medical health. Ms. Tidball-Zeltinger said yes.00:35:47
Representative Hunhoff asked if there are any Native Americans enrolled in health homes, where other federal funding would be available. Ms. Tidball-Zeltinger said approximately one-third of the Health Home population are in an IHS health home. Reimbursement is the same, however the state can reimburse IHS homes at 100% federal funds.00:36:21
Senator Partridge asked for a breakdown of the health homes. Ms. Tidball-Zeltinger said a majority of the Health Homes are medical with approximately10 being behavioral health.00:38:04
Senator Partridge asked about the average age. Ms. Tidball-Zeltinger said a majority of the clients are adults; however, there are children in health homes.00:38:50
Representative Hunhoff asked if pregnant women can be in medical health homes. Ms. Tidball-Zeltinger said they can be if they meet the eligibility criteria.00:41:40
Senator Partridge asked where the department sees the Health Home Program in 10 years.00:42:33
Ms. Tidball-Zeltinger said they will look at helping those that just need their health managed.00:42:45
Question 8: What are the rates for expanding behavioral health providers?00:43:54
Representative Bartels asked at what percent of cost will the new providers be paid.00:44:14
Secretary Valenti responded the new providers will fall into the group that is in the Governor's 3-Year rate plan. 00:44:30
Question 9: Summary Slide that identifies where the funding will be distributed by agency.00:44:53
Question 10: In CPS guardianships, can we get the number of kids that are projected to transition off the program.00:48:08
Question 11: In the Child Support program, can you provide the total amount of current support obligations due and what was collected in FY17? National comparisons.00:48:38
Question 12: Can we get a 5-year history on the Medicare bed days?00:49:50
Representative Hunhoff question on what has changed on voluntary admissions vs. involuntary admissions. Secretary Valenti said the department would follow-up on this information.00:50:13
Representative Hunhoff question on the cost of involuntary admissions.00:50:50
Secretary Valenti said the involuntary admission fee is $600 for the first 30 days, thereafter it averages $19/day.00:51:15
Representative Hunhoff asked who gets the $600. Secretary Valenti said it is deposited in the general fund.00:51:30
Representative Hunhoff asked when the fee was last adjusted. The department will provide this information.00:52:20
Senator Peters asked for the payer mix at HSC. The department will provide this information.00:52:43
Question 13: Can you get the current child care co-payment amount?00:53:27
Senator Nesiba expressed his concern with the reduction in benefits corresponding with an increase in income. It appears to be a work dis-incentive.00:53:47
Secretary Valenti commented on the change made to the chart last year when additional federal funds were available. Discussion followed.00:54:48
Representative Howard asked if the department had the flexibility to tighten up the eligibility requirements. Secretary Valenti said there are federal requirements regarding the amount of co-pay. Changes would require a change to the State Plan as well as a rule change.00:57:17
Senator Cronin asked for the number of participants at the various Child Care Subsidy levels. Secretary Valenti will provide that information but said a significant number of participants are at the 100% of poverty level.01:00:20
Representative Carson question on the requirement that forbids Child Support collections from using the Obligation Recovery Center. Secretary Valenti said federal regulations limit the amount of tax payer and private information they can release.01:02:24
Mr. Nick Wendell, Executive Director of Board of Technical Education, Department of Education, introduced technical school presidents and gave overview and made FY19 budget request for the technical institutes.01:05:45
Successfully Preparing a Workforce for the Future of South Dakota - Page 101:05:47
South Dakota Board of Technical Education purpose is designed to support the work of the state's four technical institutes and create more skilled graduates.01:06:58
List of Board Members - Page 301:07:50
Initial Priorities - Build legislative relationships, strategic planning, public perception, and address affordability. - Page 401:08:47
Technical School Locations - Western Dakota Tech, Lake Area Technical Institute, Southeast Tech, and Mitchell Technical Institute - Page 501:09:37
Mr. Wendell indicated our technical schools are the third most expensive in the United States and affordability is a challenge.01:10:09
By the Numbers - 6,000 students, 2,000 individuals infused into the workforce, 1,200 experts helping guide curriculum, 84% of students stayed in the State of South Dakota last year, and 98% of graduates are employed, continuing their education, or serving in the military. - Page 601:10:35
Existing Strategic Plan - SD Techs Work 2021 - Product, People, and Plant - Page 701:11:45
Thank You - Senate Bill 65, Maintenance & Repair Funding, House Bill 1182, Workforce - Page 8 01:12:44
Lucas Martin, Fiscal Analyst, Legislative Research Council, presented FY19 Budget Request for the Postsecondary Vocation Education, Budget Center, $23,411,445 in general funds, $0 in federal fund expenditure authority, and $182,117 in other fund expenditure authority totaling $23,593,562 and includes 3.0 FTE. - Page 2801:14:12
Expenditure Object Transfers - Transferred $64,735 in general funds, $432,117 in other fund expenditure authority, and 3.0 FTE from Education Resources to Postsecondary Vocational Education. This is a base transfer from personal services to personal services, operating expenses to operating expenses, and operating expenses to personal services. Funds were used for the Board for Technical Education created by Senate Bill 65 of the 2017 Legislative Session. - Page 2901:15:45
Senator Tidemann - question - are the Perkins Funds available for technical institutes students and observed there are no federal funds available01:16:16
Derek Johnson, Bureau of Finance and Management - responded that this federal fund expenditure authority is elsewhere and found in account 123201:17:25
Senator Cronin - question - why is the technical education board still held under the Department of Education01:19:00
Senator Peters - question - there was a transfer budget transfer midyear and why were funds transferred from account 3138 and where did they go 01:19:25
Senator Cronin - question - commented - that under Tab 11 under Department of Education shows midsummer transfer and wanted more details about transaction01:20:16
Senator Cronin - question - why was there a $400,000 difference in funding from what Senate Bill 65 says 01:21:30
Nick Wendell said there were funds in the Department of Education that were transferred to postsecondary career and technical education including a contract manager for Dakota Scholarships.01:22:19
Senator Cronin - question - is the $54,000 a one-time fund transfer01:25:24
Senator Cronin - question - how was the $250,000 transfer from the future funds used01:26:04
Senator Cronin - question - how is the $129,617 from Build Dakota Funds used01:27:37
Representative Hunhoff - question - who is the contractor and what fund is used to pay the contractor and will the endowment continue to fund this contractor and asked specifics about the contract01:28:31
Senator Peters - question - who authorized the other fund expenditure authority from the Department of Education01:29:47
Derek Johnson, Bureau of Finance and Management, gave explanation about midyear transfers.01:31:11
Lucas Martin, Fiscal Analyst, Legislative Research Council said the following were FY19 adjustments. A. Board of Technical Education Adjustment - The Board of Technical Education requested a decrease in other fund expenditure authority of ($250,000) to align the budget with anticipated expenditures. The Governor recommended a fund shift from other fund expenditure authority to General fund expenditure authority. - Page 3001:32:21
1. BOTE M&R and Increased Utilization - The Board of Technical Education requested an increase for inflation of 2% within Post-Secondary Education for various allocations. The BOTE also requested an increase of $1,010,756 to start a 4-year implementation plan to reach 2% of replacement value. - The Governor recommended $223,657 for a 6-year implementation plan to move toward M&R goal of 2% - Page 3001:32:56
Senator Cronin - question - do you have a maintenance and repair list and why are some buildings not on the list and requested additional information01:34:20
Representative Anderson - commented Tab 8 on board papers may have some building evaluation lists.01:35:25
Derek Johnson - commented some buildings at the technical schools are owned by the school districts.01:36:00
Technical Institute Funding Formula - Pages 31-3301:36:50
Representative Hunhoff - question - what percentage of students who start a technical education finish01:37:20
Representative Hunhoff - question - what is the board doing to recruit students and retain students01:39:50
Representative Hunhoff - question - did the Department of Education provide student success centers at the technical schools01:41:30
Senator Nesiba - question - do technical students fill out a FAFSA for financial aid01:42:20
Senator Nesiba - question - do technical schools have access to Dakota Promise Scholarships and does the scholarship program work01:43:25
Senator Nesiba - question - is affordability a challenge to retain students at the technical schools01:43:25
Senator Tidemann - question - how many students are employed while attending technical schools and requested additional information01:44:15
Ann Bolman, President, Western Dakota Tech, Michael Cartney, President, Lake Area Technical Institute, Robert Griggs, President, Southeast Tech, and Mark Wilson, President, Mitchell Technical Institute responded to Senator Tidemann's question.01:44:45
Senator Peters - question - students are not finishing technical school and going into the workforce and are there statistics available01:46:54
Senator Cronin - question - are you planning to raise tuition01:48:16
Postsecondary Vocational Education Tuition Assistance - Budget Center - FY19 Budget Request is $1,831,820 in general funds, $0 in federal fund expenditure authority, and $0 in other fund expenditure authority totaling $1,831,820 and includes 0.00 FTE. - Page 3501:48:44
1. Tuition Buy Down - The agency requested an increase in General Funds of $924,205. This would be an increase for the tuition buy down amount that would cover approximately $15 per credit hour. The Governor did not recommend this request. - Page 3601:49:10
Postsecondary Instructor Salary Enhancement - Budget Center - FY19 Budget Request - $3,000,000 in general funds, $0 in federal fund expenditure authority, and $0 in other fund expenditure authority totaling $3,000,000 and includes 0.0 FTE. - Page 3801:49:40
Senator Cronin - question - were the technical institutes planning an additional buydown even if the Governor did not recommend doing so and are you planning to raise tuition01:50:20
1. Tech Instructors Salary Adjustment - The agency requested a $60,000 in general funds for a 2% salary increase for instructors. The Governor did not recommend this request. - Page 3901:51:15
Senator Peters - question - how do you coordinate with the Department of Labor to provide graduates opportunities to join the workforce01:51:50
Senator Cronin - question - what are the Executive and Deputy Director duties and will there be a reversion since deputy director has not been hired this year01:53:22
Senator Cronin - question - will the contractor or deputy director manage Build Dakota Scholarship Program 01:56:12
Representative Karr - question - students are not able to get in certain programs at Lake Area Technical Institute and should we be expanding these type of programs 01:57:50
Representative Carson - question - where would the institutes be today if investments weren't made over the past 10 years02:01:18
Mr. Wendell indicated that in the Year 2014, Build Dakota Scholarship had 23 industries pay for 50% of tuition and the program requires graduates to work for a business for 3 years. Today there are 90 businesses partnerships participating in the Build Dakota Program.02:03:00
Representative Hunhoff - requested a list of programs at each institution and the number of graduates in each program over the past two years02:04:50
President Mike Cartney, Lake Area Technical Institute, said the four technical schools are ranked #1 in the nation by WalletHub for graduation and retention rates. They are challenged to meet South Dakota workforce needs and said they could expand four times if they could get students through the door.02:05:39
President Ann Bolman, Western Dakota Tech, said affordable housing for students and unreliable transportation are barriers. The technical school is partnering with Belle Fourche high school facility and host evening classes.02:08:25
President Mark Wilson, Mitchell Technical Institute, said the perception of technical education has changed tremendously over the past 15 years.02:12:15
Senator White - question - what impact has dual credit had on technical schools 02:13:10
Mr. Wilson said dual credit has provided students an opportunity to try different things and provides a pipeline to the technical institutes.02:14:00
President Bob Griggs, Southeast Technical Institute, said they are struggling to retain students due to workforce demands. Southeast Tech has had 500 businesses give their prospective and as a result Southeast Tech has changed their admissions process and are now offering evening classes. The institute anticipates increased enrollment.02:16:05
Senator Tidemann - question - will the Executive Director and the Board of Technical Education evaluate and hire institute presidents02:18:51
Senator Tidemann - question - how to we recruit students to enroll in the technical institutes02:20:40
Mr. Wendell indicated there are many students who don't seek a post-secondary education. The technical schools would like to recruit these students from with South Dakota and surrounding states to attend their institutions. 02:21:30
Minutes - Jan 19, Jan18, Jan22, Feb1, Jan 24, Jan 25, 02:23:05
Adjourn - Howard/Carson02:26:25

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