The Joint Appropriations Committee met last week for their first summer meeting. The morning was spent listening to a presentation by the USD president and vice president and the dean of the University Center of Sioux Falls on the new model for that campus. In the afternoon letters of intent were discussed and voted on to send to various departments following approval of their budgets during the 2019 legislative session.
The new model at the University Center-Sioux Falls will:
• address gaps in the educational pipeline;
• increase access to postsecondary education in Sioux Falls;
• and correct recent financial challenges.
USD will continue as the lead institution with SDSU and DSU as partner institutions. A Joint Advisory Council of area industry and government is created. All degrees are awarded by partner universities. The focus will be on program offerings with labor market relevance in high-demand field, provide greater postsecondary access to diverse populations, develop associate degrees for maximum flexibility, build innovative, collaborative relationships with other postsecondary institutions, become more student-centered in both programming and services, and target growth to serve more Sioux Falls-area residents. The signature programs will be Associate of Arts in General Studies, Bachelor of Science in Technical Leadership and Associate of Science in Integrated Science.
Financially the program will be self-support through the tuition the students pay. That continues to be a discussion point with the center and the Legislature. The definition of self-support has varied over the years in that the participating universities did not always recognize the indirect that were part of the operations. It is proposed that, under the new model, over costs will be at a rate of 8.74% of total revenue to recognize the costs of USD to provide support. Data from FY13 showed total credits generated was 29,376 with a cost of $233 per credit, to FY18 with 15,818 credits at a cost of $303 per credit. Due to a reorganization of staff under the new model, there is a change of a decrease of 6.5 FTEs with a resulting reduction in salary of $196,977.
Discussion during the presentation included lack of presence of the Board of Regents (BOR), lack of discussion of this new model during the budgeting process, lack of communication between BOR and the Legislature and concern for the financial sustainability of this new model. In addition, there was indication that this same model could be evolving in the West River university center.
The committee endorsed a letter of intent to the BOR requesting a separate budget for this center, reporting requirements to the committee and discussion with the Legislature prior to any action for the west river campus.
The remaining portion of the meeting included the review and passage of letters of intent. Letters of intent set forth a particular view held by the JT Committee of Appropriations (JCA) in approving a department’s appropriation in the 2019 session. While the guidance does not have the direct force of statutory law, it rests solidly on a long-standing tradition of Legislative-Executive relationships in South Dakota and it will be used by the JCA as one basis for the fiscal oversight of the agency and its continued funding.
DSS, DHS, DOH, DOC, UJS and DPS received letters confirming the one-time provider funding enhancements for the FY 2019-2020. SB 180 included increases for all provider groups for the final three months of FY 2019. The intent is that the providers receive these appropriations in conformity with the approved funding.
The Legislature approved SB 173, which provides $5 million in general funds to the DHS to be used for nursing home innovation grants and expedite the scheduled review of the nursing home rate methodology and $1 million in general funds to DSS to be used for primary and prenatal care innovation grants.
The departments must report to the JCA in January 2020 to include:
• grant program outline;
• intended grant outcomes;
• grant application process;
• successful grant award criteria;
• applicant/recipient location and other/or other considerations, grant recipients including project summary, budget summary, and project outcomes;
• and status of nursing home rate methodology review.
DSS and DOH will provide an annual report in November of each year on federal opioid funding to include: dollars expended, grants utilized, and a description for each program or activity receiving opioid funding for the prior, current, and next fiscal year; planned program outcomes, goals, and identified metrics for each program or activity receiving opioid funding; and an update on outcomes, goals, and metric attainment in the prior fiscal year.
The 2019 Legislature approved 1.0 FTE and $77,439 in general funds for the Department of Agriculture accounting manager position through SB 191. It is the intent of the JCA that the DOA complete an analysis and bring forth a proposal to implement the process of billing the boards, commission and councils housed under the DOA for accounting, legal and any other services rendered by DOA.
SB 191 provided $215,000 in general fund appropriations to implement a new family-first initiative program with the Department of Labor and Regulation (DLR). It is the intent of the committee that no more that $15,000 of the funding be used for administering the program. The department is requested to:
• for the recently completed fiscal year, provide list of the awardees, dollar amount, purpose, and intended outcome;
• provide a list by location of the expanded existing classes/programs and increased offering of the classes/programs by providers;
• and develop and report on measurable outcomes for the program consistent with those specified during the 2019 session.
LEAN projects were approved for DSS and BOR. Money was appropriated in SB 191 for $375,000 in general funds for a statewide resource information system. The coordinator for the system must provide an update at the December JCA meeting to include outcomes; goals and or identified metrics; number of calls, emails, texts received, purpose of the type of calls etc. received and the counties/localities that are supported. The JCA is developing a framework for departments to be accountable for the dollars received and expended. This continues to be work in progress to measure outcomes for the resources that are being expended.
If you have questions or concerns, please contact me at Jean.Hunhoff@sdlegislature.gov or call 660-5619.