Committee on Appropriations A/V — 2019

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Senator Wiik called the Joint Committee on Appropriations to order.00:00:57
Introduction of Pages00:01:04
Senator Wiik passed the gavel to Senator Kolbeck.00:03:20
Minutes Approval January 23rd - Partridge/Greenfield00:03:25
Minutes Approval January 25th - Post/Greenfield00:03:46
Mr. Jim Hagen, Secretary, Department of Tourism, made staff introductions, gave department overview, and made FY20 Budget Request as recommended the Governor.00:04:50
The theme for Department of Tourism is "State of Great".00:05:59
Secretary Hagen stated this was the 9th year in a row for record state tourism revenue and visitor growth.00:06:36
In FY18, tourism increased 2.5% and gross income was $3.98B. South Dakota had over 14.1 million visitors last year. Approximately $298,000,000 in tax revenue was generated last year.00:07:48
South Dakota was named one of the top places to travel in Forbes Magazine and Fodor's Travel publications.00:09:37
Secretary Hagen said the Department of Tourism does not use any general funds.00:09:57
Secretary Hagen indicated website hits are up. Views have increased 35 %.00:10:00
Senator Maher - question - what does 2,000,000 sessions mean.00:10:32
Representative Karr - question - would you share highlights of the Department of Tourism in a fact sheet and requested additional information.00:10:51
Representative Karr - question - what is the definition of a visitor according to the Department of Tourism.00:11:45
Secretary Hagen said there are several travel, market, and adventure shows that the South Dakota Department of Tourism attends to promote the state. New shows are Chicago, Dallas, Denver and Los Angeles.00:12:39
There will be additional air flights to the Rapid City Airport from California.00:13:10
Representative Koth - question - what does the Department of Tourism do to help businesses promote tourism in the off season.00:13:42
Senator Cronin - question - how are you able to attract visitors from San Francisco.00:16:25
Senator Cronin - question - would the new California flights to Rapid City make it easier for Asian tourists to travel to South Dakota.00:18:50
Representative Gross - question - how do Forbes and Fodor's publications promote South Dakota Tourism.00:19:51
Representative Gross - question - was the article from Forbes and Fodor's publications centrally about tourism in the Black Hills of South Dakota.00:20:45
Secretary Hagen commented the Department of Tourism will bring back Great Places Great Faces television ads in the next few weeks.00:21:24
Department of Tourism published many foreign publications to promote tourism in South Dakota.00:23:00
There are 362,000 action steps that are a part of the Department of Tourism strategic plan and they are on task for accomplishing action steps in the year 2019.00:23:52
Secretary Hagen expressed concern that the South Dakota marketing budget is lacking compared to other surrounding states. Other challenges include the agriculture and ranching economy slump and workforce shortage.00:24:22
Workforce solutions may include recruiting people from the reservations or international visa workers.00:25:38
Senator Maher - question - how are you going to promote workforce from the reservation and Tribal Tourism.00:26:15
Senator White - question - how is the Department of Tourism promoting tribal tourism and indicated out-of-state visitors that attended the Governor's Buffalo Round-up are interested in visiting Native American pow-wows.00:28:08
Representative Saba - question - have you considered promoting tourism through a road show with Native Americans in Europe.00:29:25
Secretary Hagen said the last Bureau of Human Resources questionnaire indicated the Department of Tourism is #1 in job satisfaction. A challenge is retaining employees, getting talented employees to work in Pierre, and properly compensating them.00:30:32
Agri-tourism, Outdoor Adventure tourism, Sports tourism, and Tribal Tourism are all a part of the Department of Tourism strategic planning. 00:32:00
Secretary Hagen (referring to Page 5 Legislative Research Council Budget Brief) shared website and media statistics.00:33:57
Representative Saba - question - is the Global Travel and Trade Division the fastest growing area and how is it impacting the Department of Tourism.00:36:37
Representative Gross - question - how does South Dakota find their niche in the market compared to surrounding states.00:39:48
Secretary Hagen, Department of Tourism, said the department is using creative double exposure photography to set their marketing apart. He also indicated tourists are interested in the Mt. Rushmore, Deadwood, Sioux culture, Laura Ingles Wilder, and places like Custer State Park.00:40:49
Mr. Travis Dovre, Finance Office, Department of Tourism, referred to Legislative Research Budget Briefing Document Pages 6 & 7.00:42:45
Mr. Dovre gave update on FTE Utilization and seasonal employees.00:43:51
Representative Hunhoff - question - would you share where seasonal employees will be stationed at rest stops this year.00:44:51
Senator Nesiba - question - would you give an overview how you receive funding for the Department of Tourism.00:45:25
Senator Maher - question - how do you determine which business tourist business versus a regular business is.00:46:05
Senator Nesiba - question - is the farmer's market considered to be seasonal and subject to the Department of Tourism tax.00:46:54
Senator Kolbeck made a comment on how Department of Tourism tax works in the State of South Dakota.00:47:30
Senator Cronin - question - are all proceeds from tourism tax revenue used in the following fiscal year.00:47:59
Senator Cronin - question - referring to Page 15 Legislative Research Council Budget Briefing00:49:05
Senator Cronin - question - would you explain other fund increases Page 8 Legislative Research Council Budget Briefing Document - Tourism Promotion Tax Reallocation and Marketing and Advertising Expansion.00:49:48
Senator Cronin - question - is the Department of Tourism requesting tourism tax revenue that has been allocated to the Department of Education for the Archeological Research Center and the Cultural Heritage Center be returned for marketing.00:51:35
Representative Karr - question - would you explain Tour Promotion Fund $16,000,000 and what was the $3.2M transfer on Page 8 of the Legislative Research Council Budget Briefing Document.00:52:20
Mr. Patrick Baker, South Dakota Arts Council, met with the Joint Committee on Appropriations and requested an additional 1.0 FTE.00:53:28
Mr. Baker said the South Dakota Arts Council makes a significant return on investment. The $1.36M South Dakota Arts Council Budget had a return of $19.48M from local cash matching funds. In FY18, the South Dakota Arts Council gave 474 grants that affected 111 different communities in the state.00:54:00
Mr. Baker stated the Arts for State Building Program is very successful and celebrated its first decade and promotes South Dakota artwork throughout the state.00:55:50
The number of projects and grants has grown over the past 50 years and staffing is static. A grant specialist is needed to help monitor grant compliance and funding would be supplemented by the National Endowment of the Arts.00:56:57
Senator Maher - question - are grants reviewed annually and is funding given to the same entities year after year.00:58:14
Representative Saba - question - do you have criteria for new FTE to raise revenue for the South Dakota Arts Council.00:59:40
Representative Saba - question - how do you determine salary for new grant writer and gave example of criteria of development director in the private sector.01:00:15
Representative Karr - question - would you share how the South Dakota Arts Council rotates the artwork throughout the Capitol.01:01:55
Representative Karr comment - requested certain types of artwork for the Appropriations Room.01:03:05
Representative Saba - commended Department of Tourism for department's efforts.01:03:55
Senator Wiik shared artwork of Mr. Tom Jones that is in the Legislative Research Council.01:04:30
Senator Kolbeck challenged Secretary Hagen to keep tourists in the State of South Dakota one more day, it would help their department budget.01:05:25

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