2013 State of the State Address

Uploaded by SDPBdotORG on 08.01.2013

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>> Stephanie Rissler: Hello,
and welcome to South Dakota Public Broadcasting's coverage
of the 2013 State of the State Address.
We are coming to you from the House of Representatives
in our capital city of Pierre.
I'm Stephanie Rissler.
>> Cara Hetland: And I'm Cara Hetland.
And in just a few moments,
Governor Dennis Daugaard will deliver his third State
of the State Address to a joint session of the 105 lawmakers
who are assembled here today.
>> Stephanie Rissler: Right now we do have the Speaker
of the House, Brian Gosch.
He's taken the podium, which means the Governor is not far
from being down the hall
to deliver his thoughts for the 88th session.
Just some notes, with the new session comes many new faces:
41 new lawmakers are here in Pierre
to begin this year's session.
>> Cara Hetland: Right, and more females this year
than ever here at the capitol.
And we also have a father-daughter pair,
a father-son pair, and Mark Mickelson was elected
to the House of Representatives.
First time in about 20 years since a Mickelson --
the son of former Governor George Mickelson --
has been an elected official in this building.
>> Stephanie Rissler: Yeah,
this April will mark the 20th anniversary of the crash
of that plane in Iowa that took place.
What has happened thus far: At noon lawmakers both
in the Senate and the House were sworn in --
returning and new lawmakers -- an emotional moment for many.
Of course now we're waiting for the arrival
of Governor Dennis Daugaard to really set the pace
for this year's session.
So far we do have several bills that have been introduced.
If you look at the legislative research website,
you can see what some of those bills are.
Right now the House has introduced about 69 bills,
one of those being an appropriation
for mountain pine beetle, to try and combat that battle.
Sixty-three bills have been introduced in the Senate.
So even though we have 40 new lawmakers,
they are hitting the ground running.
And they're here to get to work.
>> Cara Hetland: Oh, and one interesting fact:
After the State of the State Address,
Governor Daugaard will walk across to the Senate chambers
and file his judicial reform legislation.
Joining him will be the Chief Justice David Gilbertson --
will join him in introducing that legislation today right
after he lays out his priorities to lawmakers.
>> Stephanie Rissler: And tomorrow just a note
on programming, as you mentioned the Chief Justice David
Gilbertson, he will deliver the State of the Judiciary Address.
That's scheduled for tomorrow at 1:30.
Of course we'll have it on our website at sdpb.org.
You can watch it on SDPB2.
It's not our main channel, it's our SDPB2 channel.
And all of our coverage
with State House really kicks off this week
with radio filing stories daily.
>> Cara Hetland: Daily stories and all
of our newscast will have regular updates
on our Dakota Midday Program.
At noon everything is online at your convenience:
You can read the scripts, listen to the audio, you can listen
to all of the committee hearings online as well.
Everything is archived in there at sdpb.org.
And don't forget our Twitter and Facebook
where I'll have us updates as well throughout the session.
>> Stephanie Rissler: And one of the new things
that we tested last legislative session,
we decided to go gavel-to-gavel live as it happened.
We are going to continue that.
So you're if able to get our SDPB2, you can watch the House
of Representatives live as it happens gavel-to-gavel.
It begins most days at 2:00 p.m. Central Time.
Immediately following the House
of Representatives coverage we'll bring you the
Senate coverage.
And, Cara, as you mentioned everything happens live online,
whether you want to go and listen to a particular bill
in a committee room or if you want to listen to coverage
in both the House and the Senate,
it's streamed live as they happen.
They are later archived as we talked about.
So you can go and listen to those issues
when it's most convenient for you.
>> Cara Hetland: Right, sdpb.org/statehouse.
Lawmakers are mingling around.
We're waiting for the Governor to come
and deliver his State of the State Address.
Some things that he may talk about:
He will likely provide some details on some
of the initiatives that he talked
about in his 2014 budget address,
he had said that he will give some more specifics.
But again, the Governor always stresses this is his plan,
it's a plan, it is not the plan.
And lawmakers will weigh-in and let the negotiations begin
as they move through some of the issues.
But as you said, mountain pine beetles; he has talked
about expanding the Mickelson Trail and appropriations
for that; remodeling some buildings; and again,
his judicial reform, he'll give some more details on that today
as well in his State of the State.
>> Stephanie Rissler: Some of the issues
as you mentioned will be mountain pine beetle, education.
There's also several million dollars of uncommitted funds --
what that battle will be over those funds we don't know yet.
We don't even know if there will be a battle.
There's lots of ideas that I'm sure all 105 lawmakers have.
We'll have to see where the chips may fall.
Typically governors in the past have given briefings prior
to any type of speech or address.
Governor Dennis Daugaard and his staff have decided
to instead give a prepress briefing following the address,
that way the media can follow up on any issues they feel
that need to be clarified or visited more with the public.
So as we begin today's State of the State Address, Cara and I,
we're really in the dark just as you are at home.
I'm sure the Governor's had a chance to visit with his party
and the Democratic Party to kind of give them a lay
of what he expects to come.
But really, as a South Dakota, as a state, as citizens,
we'll see what the Governor has to say
when he enters the chamber in just a few moments.
>> Cara Hetland: And lawmakers mulling around.
They all come in with their priorities, with their ideas,
with their initiatives.
I know some of the Democrats really want some
of that surplus money -- if you can call it that --
to go toward Medicaid reform.
Some lawmakers are looking for some one-time money
to help boost funding for education.
So there's going to be a lot of different ways to solve some
of the problems and concerns in the state of South Dakota.
>> Stephanie Rissler: It is a full house.
Whether folks are watching from the gallery or on the floor,
a lot of people have come together in the capital city
as we begin our 88th legislative session.
Our new Speaker of the House this year,
Representative Brian Gosch, he's from Rapid City.
He'll be taking over from Representative Val Rausch
who was not re-elected this year.
He's asking everybody to take their seats
and that's a good indication that things are about to begin.
We'll go down to the floor right now for just a few moments
to listen to the speaker.
>> Brian Gosch: I've worn many hats.
For all of us in South Dakota, from being in the Navy,
to healthcare industry, he's a lawyer, he's many other things,
he's now our Lieutenant Governor.
Please welcome Matt Michaels.
>> Matt Michaels: Thank you.
[Applause] Thank you.
Thank you so much, Mr. Speaker.
Ladies and gentlemen, it's a privilege to be up here
and to be with you again at this joint session.
It's an honor for us to continue to be stewards
of this experiment of self-governance.
This joint session will now come to order.
Leading us in prayer today is Reverend Brad Urbach
from the Fort Pierre ministerium.
>> Brad Urbach: We pray.
Holy Father, creator of the heavens and the earth.
Bless the women and men of our House of Representatives
and our Senate as we gather in this legislative session.
Bless as well our Governor and his vision
for the well-being of our state.
Guide our Supreme Court Justices as they ponder important issues
that affect our state.
Grant all those gathered in this place of wisdom from on high.
Guide us, Father, so that
that wisdom will help us make decisions that are responsible
to the needs of our citizens while being responsible stewards
of the resources that our state possesses.
We are grateful for this day and we ask that the noble work
of this capital may be pleasing in your sight.
These things I ask in our Lord's holy name.
>> Please rise for the pledge of allegiance.
I pledge allegiance to the flag of the United States
and to the republic for which it stands,
one nation under God indivisible
with liberty and justice for all.
>> Secretary, please call the role.
>> Adelstein; Begalka; Bradford; Brown; Buhl; Ewing; Frerichs;
Heineman; Holien; Hunhoff; Jensen; Johnston; Jones;
Kirkeby; Krebs; Lederman; Lucas; Maher; Monroe; Novstrup; Olson;
Omdahl; Otten; Peters; Rampelberg; Rave; Rhoden;
Soholt; Sutton; Tidemann; Tieszen;
Van Gerpen; Vehle; Welke; White.
Mr. President?
>> Thank you.
The clerk will call the role.
>> Representative Bartling; Bolin; Cammack; Campbell;
Carson; Conzet; Craig; Cronin; Dryden; Duvall; Ecklund;
Erickson; Feickert; Feinstein; Gibson; Greenfield; Don Haggar;
Jenna Hagar; Hajek; Hansen; Hawks; Hawley; Heinemann;
Heinert; Hickey; Hoffman; Hunhoff; Johns; Kaiser; Killer;
Kirschman; Kopp; Latterell; Lust; Magstadt; May; Mickelson;
Miller; Munsterman; Nelson; Novstrup; Olsen; Otten; Parsley;
Peterson; Qualm; Rasmussen; Ring; Romkema; Rounds; Rosum;
Russell; Schaefer; Schoenfish; Schrempp; Sly; Soli; Solum;
Stalzer; Steele; Stevens; Tulson; Tyler; Verchio; Werner;
Westra; Wick; Wink; Wismer; Speaker Gosch.
Mr. Speaker, quorum is present
>> Brian Gosch: Thank you, Madam Clerk.
The joint session does have a quorum of both bodies.
We're going to take little bit of a personal time here
and welcome you all, but also welcome you
to a greater family of public service.
This is a small state but it's also one of family, of ties.
As they say we're all related just a couple
of generations down.
One of the things that my wife and son and I enjoyed
through our legislative session is becoming very good friends
with our governor and his family.
And they have in the last few years included us
as part of their family.
At this time I would very much want us all to recognize,
though, the First Lady, who is not only a woman
of immediate family as a grandma and soon to be a grandma again,
but one who views the people of the great state
of South Dakota as her family.
The Governor asked if I would be his partner in public service,
but really she is that partner.
In the last two years she has worked tirelessly for the people
of the great state of South Dakota.
She has been using her professional background
and ensuring that all people know how to love
and be involved in reading.
She's read in over 200 schools, over 19,000 third and fourth
and fifth graders across the state;
so many that our staffers can memorize
and have memorized the books that she's read.
She cares about our future because she is part of it.
She sees what happens with children in need
and has led a task force on infant morality.
She chaired this work group
and the governor will speak a little bit about this.
But coming up with critical recommendations
that will indeed reduce and have already reduced the number
of children that have been dying before the age of one.
She cares about our health and keeping and focusing
on promoting the awareness both
of breast cancer and heart disease.
She wants us to achieve and our children to be involved
in science, and technology, and engineering, and mathematics,
and has attended and encouraged many people to go
to Scrubs camps, which are camps for high school kids interested
on a hands-on introduction to healthcare.
She has opened up, truly, the people's house, their mansion,
to tours and understanding
that really it is a gift for everyone to know.
She is a giver, she is a public servant
and when you elected the governor
and when you elected me, you elected her.
Ladies and gentlemen,
please recognize First Lady Linda Daugaard.
You know, Linda gave me signal to cut it off
but I've been married for 25 years and I only answer
to one higher authority.
[Laughter] Nice try.
Thank you so much for all you do.
Madam Secretary, you have a motion.
>> Senator Olsen moves that a committee of three on the part
of the Senate and a committee of four on the part
of the House be appointed
to escort the honorable Dennis Daugaard, Governor the State
of South Dakota to the Rostrum.
>> Brian Gosch: All those in favor
of that motion signify by saying "aye."
>> Aye.
>> Brian Gosch: Those opposed "nay".
Motion carried.
President announces the committee to be comprised
of Senators Brown, Olsen, and Frerichs,
and of the House Representatives Lust, Cronin,
Hunhoff, and Bartling.
Ladies and gentlemen of the legislature, congratulations
to you all, but especially to those of you I see out here
who have just taken your first oath of office.
It is a momentous day, a day that really comes
from our Constitution.
The oath that you took to support the Constitution
of this great state came from our Constitution.
And as such, you are stewards of the Constitution
of the institution created as the historian John Lauck relates
that our framers wanted to be comprised of people like you --
citizens who promoted the common good over self-interest
with indeed an impetus and passion to encourage citizens
to preserve and protect and govern our precious republic.
As a matter of fact, on October 1, 1889 our Constitution,
when it was enshrined and adopted by the citizens
of that time, was approved with a preamble
that I recommend you keep in the front of your legislative book.
Our constitution begins this way: We,
the people of South Dakota, grateful to almighty God
for our civil and religious liberties,
in order to form a more perfect
and independent government establish justice,
ensure tranquility, provide for the common defense,
promote the general welfare, and preserve to ourselves
and to us our posterity the blessings of liberty.
We do ordain and establish this constitution
for the state of South Dakota.
The same constitution requires at the beginning
of each session our legislature hear
from the governor providing information concerning the
affairs of the state
and recommend the measures he considers necessary.
I'm indeed privileged to have Dennis Daugaard as a friend,
but more importantly to be part
of our leadership of this nation.
I've known the governor for a long time.
And you will agree with me that he is entoiled and continues
to toil to improve our great state.
And indeed as a product of hard work and commitment,
he personifies the principles that our founders envisioned
of selflessness, of promoting the common good
for all South Dakotans,
and indeed the most passionate advocate for our great state
where the motto is "Under God the people rule."
Sergeant at Arms will you please announce the governor?
>> Lieutenant Governor and members of the legislature,
the honorable Governor of the State
of South Dakota, Dennis Daugaard.
>> Thank you very much.
Thank you very much.
Please be seated.
Thank you.
[Applause] Okay, that's enough.
Thank you.
Please be seated.
Thank you.
[Applause] Thank you very much.
Okay. Be seated.
Thank you.
Thank you very much.
Thank you.
Now, those of you keeping track
of how long my speech will be it has just now started
and does not include the Lieutenant Governor's generous
introductory remarks about my wife as I wrote them.
[Laughter] And I want you to know
that this will be the shortest State
of the State speech I have given.
Huh? Okay.
[Applause] No, thank you.
It's good to have you back and I want
to welcome you all to Pierre.
We're all here because South Dakota's voters, our friends,
and our neighbors sent us here with their votes
and we're here to represent them.
They elected us because they believe that we share --
their values and their priorities for South Dakota.
You and I -- the legislature and the Governor, are stewards
of this state government.
Stewardship is defined as careful
and responsible management
of something that's entrusted to one.
And the people of South Dakota have entrusted their state
government to us.
And they're counting on us to be good stewards.
This isn't our state government, it isn't our capital building,
it isn't our $4 billion budget,
it belongs to all the people of South Dakota.
And as our state seal says, "Under God the people rule."
The people have entrusted this state government to our care
and we must operate it in their best interests
by applying the values that they hold.
This past election our voters told us
that they value structurally sound budget processes,
a fiscal management, a balanced budget.
They also told us they don't want higher taxes,
even to fund important government services
that they support and we know they support.
As good stewards we need to act carefully and responsibly
to build a stronger South Dakota.
That means we must think of the long term,
not just the short term, and make decisions
for the next generation.
Let me open today with a story.
Our state capital building where we are today is 103 years old.
When plans for the construction
of this building were being made our state leaders began
with a frugal decision: Rather than design a new capital
from scratch, they hired the same Minneapolis firm
which had just designed the Montana state capital.
We saved thousands of dollars
by adapting the Montana state capital architectural drawings
to our own.
In fact, today one book calls our capital
and their capital fraternal twins.
Speed ahead a few years.
In Montana the capital rotunda floor,
which is in part comprised of glass prisms, had been at risk
to collapse and had to be completely replaced.
Of course, our Bureau of Administration here
in South Dakota took great interest in this
because our capital rotunda has that same kind of floor
with that same kind of glass prisms.
And analysis showed that our floor was inadequately
reinforced as well.
We took action last year.
And if you were here last summer, you might have seen some
of the construction taking place on the first floor.
State work crews added quarter-inch thick steel plates
to the underside of the floor panels with laser cutouts
for each of the glass prisms.
These plates were welded to reinforce steel beams.
The new underside of the floor was painted
and the plaster was recast
to match the former appearance of the floor.
That floor, which could have become a risk and a liability,
doesn't look much difference now than it did a year ago
or even hundred years ago,
but the floor is structurally sound now
for the next one hundred years.
That's good stewardship.
It isn't as attention getting as a new program,
but instead of initiating something new
that we can't afford or can't maintain, we're taking care
of what we already have.
We're being good stewards.
We're reinforcing the floor.
Of course, the best example
of good stewardship is what we did together two years ago
to achieve a structurally balanced budget.
I'm strongly committed to maintaining
that structural balance.
Some states are still struggling to achieve balance.
Last Friday the National Association
of State Budget Officers sent out its weekly news review.
Let me give you some of the bad news
that other states are still facing.
Connecticut acted three weeks ago
to eliminate their FY13 budget deficit of $252 million.
Their tax revenues are coming in lower
than the overly optimistic budget revenue estimates
which they'd adopted.
They're forced to cut education,
cut tourism, cut social services.
They're also borrowing money and using some of their reserves.
That's right now.
That's this year's budget.
Delaware's FY13 budget is at least $50 million short.
Delaware's a state with a population about like ours.
Temporary tax increases -- which were imposed in response
to the recession --
were supposed to expire starting next year.
Now they'll probably have to be extended.
In Georgia tax collections declined
by one percent last month.
Ours went up, theirs went down.
And FY13 revenues in Georgia are coming
in below adopted revenue estimates.
State agencies have been instructed to cut 3%
from their appropriated budgets right now.
Louisiana will need to make $165 million in midyear budget cuts
to balance this year's budget.
Maine's governor ordered $35 million in midyear spending cuts
to balance this year's budget.
Massachusetts' current budget gap is $540 million.
Minnesota's deficit is $1.1 billion.
Mississippi is short.
New Jersey is short.
So are New York and Vermont.
Illinois, Kentucky, and others face enormous
pension shortfalls.
In Kentucky alone, if their revenue grows by 3%,
every bit of that growth will be consumed
by the pension demands -- nothing for education,
nothing for Medicaid, nothing for other state services.
Among the states there are bright spots.
And South Dakota is a comparative bright spot.
Because we have contained our spending
and adopted conservative revenue estimates --
and I want to thank you all for doing this.
I want to thank everyone across our entire state
for the sacrifice necessary to bring our expenditures
down to the revenues we were receiving.
Thank you all for your selflessness.
Our current year's budget is running better
than we projected, providing funds
for one-time projects in FY13.
As other states are looking where to cut,
we can look "Where shall we spend these dollars?"
As I discussed last month,
I believe that good stewardship would employ one-time funds
to improve our structural soundness
by eliminating a liability, building or improving an asset,
securing an asset, or endowing a program for the future.
I've offered ideas for some of that one-time spending
and I'm looking forward to hearing some
of your ideas as well.
Over the past two years our state agencies have undertaken
dozens of projects and initiatives
to reinforce the floor of state government
and to be good stewards of our tax dollars.
I'd like to share a few examples of those.
As we discussed last month, the Department of Social Services
and the Bureau of Administration have been working together
on a plan to deal with the dilapidated buildings
at the Human Services Center in Yankton.
These buildings have fallen into disrepair
and become a liability to the state.
If you agree, work will begin this year to restore some
of the most historically significant structures while
others will be demolished.
It is long past the time for us
to be good stewards of this property.
Our Department of Agriculture's investment of $6 million
to fight the mountain pine beetle is paying off already,
as we have slowed the spread of this epidemic.
Our efforts have been particularly successful
in Custer State Park where state crews, inmates,
and contractors have removed more
than 100,000 pine beetle infested trees.
If you agree, we'll invest still another $2 million next year
to partner with counties
on further beetle suppression efforts throughout the
Black Hills.
In May, the Department of Labor
and Regulation instituted a new program to help those
on unemployment for more than twelve weeks
to find a job quickly.
The program requires participants
to be actively searching for work, honing old skills
or learning new ones, taking advantage
of intensive personal services with local staff.
Since the program began,
three out of four participants are off the unemployment rolls.
Continued tourism promotion has brought record numbers
of visitors to South Dakota
and has grown this important industry.
That success is due in no smart part to the Tourism Tax
that the industry imposed on itself several years ago
to fund promotion efforts.
Much of this tax is paid by visitors from out of state,
and I strongly support the industry's effort this year
to make that tax permanent.
Our Department of Health continues
to be a national leader
in promoting the importance of immunization.
South Dakota consistently has among the highest immunization
rates in the nation for children entering kindergarten.
And for the past two years we have led the nation
in overall flu vaccination rates.
The Department of Education and the Board
of Regents are working together to redesign remediation courses
so that high school students
who need help can complete remediation before they
enter college.
Under the old system, incoming college students spent time
and money during their first semester on remediation classes,
and that setback led to dropouts.
The new system uses the ACT test
to identify students while they're still in high school
and then offers them a shorter and more targeted remedial class
so they're ready when they enter college.
The Department of Environment
and Natural Resources has been working.
They've continued to be a good steward of our environment,
making South Dakota only one of seven states in the nation
to meet all federal air quality standards and one
of only a few states implementing all national
primary drinking water standards.
Our air and water is clean.
The Department of Transportation has our state highway systems
pavements and bridges in as good a shape as they've ever been,
based on long-utilized criteria
for evaluation of their condition.
We are working with the Education Enhancement Funding
Corporation to refinance the state's tobacco bonds,
which were issued ten years ago as a result
of the Master Settlement Agreement
with tobacco companies.
The refinancing is a prudent step that will mean more money
into the Education Enhancement Trust Fund
and also a larger distribution from that fund
to support education in South Dakota.
And speaking of trust funds,
I'm pleased that our voters approved Constitutional
Amendment O, which protects the principal
of the Cement Plant Trust Fund and makes it structurally sound
for future generations.
The Department of Social Services has been recognized
by the federal government as being the best in the nation
in Medicaid administration accuracy.
More than any other state we protect
against fraudulent claims
and we make accurate eligibility determinations.
DSS has also cut wait times
for inpatient substance abuse treatment,
down from 30 days to 2 days.
And the department's implementation of the findings
of last year's Medicaid Solutions Work Group are already
saving the state half a million dollars a year.
Our Department of Corrections is doing good work.
It's achieved level four certification by the Council
of Juvenile Correctional Administrators.
In 2011 we were the first state in the nation to do this.
And last year we maintained this certification for a second year.
I've required our juvenile facilities to be certified
by these national performance-based measures.
And I'm proud that DOC has reached this high standard.
Our Department of Veteran Affairs this year will begin
construction of a new veteran's home in Hot Springs,
including energy efficient construction
and a woodchip boiler.
As the greatest generation of veterans from World War II
and the Korean War are replaced
by Vietnam-era veterans entering their retirement years,
we have a new generation
of veterans returning from the front lines.
Now more than ever we need a state veteran's home
that can serve our state's veterans in the decades to come.
Last year you know I had the opportunity to join a Department
of Defense trip to Kuwait and Afghanistan
to visit South Dakota's troops.
And seeing the bleak landscape of Afghanistan and the desert --
extreme desert conditions --
made me appreciate even more the sacrifice that every member
of our military makes for our nation.
That's why I'm proud that the department helped veterans
obtain over $110 million in benefits last year.
Let's take a moment now to thank our veterans
for all they've done for us.
All veterans -- all current and former service members
of Regular Armed Services, National Guard, and Reserve,
please stand and be recognized.
Veterans, please stand.
I also want to update you on several ongoing efforts
that began sometime during the past couple of years.
The Lieutenant Governor made mention
of Linda's Infant Mortality Task Force.
Two years ago I announced an effort
to reduce infant mortality in South Dakota led by Linda
and the Department of Health.
And following up on one
of the task force's key recommendations,
the state has distributed more than 500 Safe Sleep Kits
to families who do not have a safe place
for their babies to sleep.
Last year I also proposed the South Dakota Workforce
Initiative, South Dakota Wins.
And I was pleased that the legislature approved every
aspect of that proposal.
This package of 20 initiatives is focused
on developing the qualified workforce
that will underpin our economic growth over the next decade.
We have increased the state's capacity
to train welders and machinists.
I directed economic development grants to purchase machinery
to establish a new welding program at Mitchell Tech,
adding 18 new training slots this year.
In addition, we funded the development
of a distance learning --
an innovative new program at Lake Area Tech --
to deliver online distance training in welding
and precision machining.
And we've expanded the welding program
at Mike Durfee State Prison in Springfield
to train 32 more inmates in this skilled trade.
I've also asked the Governor's Office of Economic Development
to redirect some community development block grant dollars
to workforce training activities.
Since implementing this change, eight grants totaling
over $1 million have provided funds for training
over 300 workers in jobs,
including certified nursing assistance,
training for commercial driver's licenses, and others.
Another aspect of South Dakota Wins is improving the
availability of healthcare providers in rural South Dakota.
Access to healthcare is important to the quality
of life in our rural areas.
Last session you passed bills
that are already making a difference.
The Recruitment Assistance Program has placed physicians,
physician's assistants, nurse practitioners, and dentists
in seven small communities.
The Rural Health Facility Recruitment Assistance Program
has helped place 60 more health professionals in 35 communities.
We're also beginning a program
that will place third year med students in rural settings
such as Milbank, Mobridge, Parkston, Platte, and Winner.
In addition, the Primary Care Task Force met this year
and a smaller oversight committee will continue
to monitor implementation of these efforts.
I want to stop and thank Senator Brown, Senator Sutton,
Representative Hawley, and Representative Magstadt
for their participation on this important task force.
Last year we also redoubled our efforts to market Dakota Roots,
a successful program that Governor Rounds created
to invite former South Dakotans back home to work.
Through a focus campaign using social media,
we had a record number
of new job seekers enter the Dakota Roots program.
And last year alone this program brought 536 South Dakotans back
home to take a job here.
We have also begun work on the new South Dakotans program
which partners with South Dakota companies
to recruit skilled out-of-state workers into South Dakota.
The program's gotten off to a slower start than I'd hoped
and we've expended less than 10% of the funds.
But it's beginning to show results.
So far businesses from across South Dakota -- 35 of them --
have enrolled in the program, listing over 250 job openings.
And they've successfully attracted 55 out-of-state
workers who've moved to South Dakota or are in the process
of moving to accept hard-to-fill position that we couldn't fill
after 30 days in South Dakota.
I'm hopeful that as more businesses use that program,
the success will grow.
Our workforce development efforts could not be more
important because South Dakota continues to have great success
in attracting out-of-state business
and growing in-state businesses.
In fact, the Governor's Office
of Economic Development aided 80 different companies
that were expanding in South Dakota last year.
Almost a year ago we announced the decision by Bell Brands
to build a cheese manufacturing plant in Brookings.
This is the largest value added agg project
in our state's recent history.
Bell Brands is investing $100 million dollars
in construction costs, which is well underway in Brookings
and at full capacity it will employ 400 South Dakotans.
We're seeing a resurgence of the financial services industry
in Sioux Falls: Capital One added 400 new jobs in 2012;
Twin City Federal created still another 200.
We are also welcoming new companies
that will service the oil and gas sector in the west,
including Pipeline Plastics in Belle Fourche and W.L. Plasics
in Rapid City, with each company adding 40 jobs.
An expansion of Adam's Thermal Systems
in Canton retained 600 jobs and added another 50 jobs.
An expansion of Baldwin Filters in Yankton will add
up to 70 jobs over the next three years.
It should be no surprise that South Dakota's economy continues
to grow while other states struggle.
The Small Business
and Entrepreneurship Council put South Dakota number one
on its business policy index based on 46 factors.
The Dow Jones weekly newspaper, <i>Barron's</i>,
named South Dakota the best-run state in America
for our sound financial management.
And our state has ranked in the top three in categories
such as low estate and local tax burdens;
best business tax climate; highest average credit ranking;
and best state for young people.
[Applause] Yeah.
[ Applause ]
Just so I'm clear, Charlie, I don't know what their definition
of "young people" is, but I'm defining young people
as anyone under 65.
[Laughter] And we're in there, buddy.
One continuing challenge
to our economic development effort is the contractor's
excise tax.
Although our tax burden overall is favorable,
this tax imposes a unique cost up front
on new construction investment.
Over the past several years we've tried several approaches
to mitigate this problem,
including the Automatic Refund Program that expired at the end
of last month and the Discretionary Grant Program
that was rejected by the voters.
I know there are still a concern about this tax
and about the adequacy
of our state's economic development programs
and I welcome a discussion with the legislature this year
about how we should move forward.
I need your help and your ideas.
Another good example
of our leaders working together has been
in the area of oil and gas.
This year I convened two work groups
and I know the legislature did likewise,
the first to explore our potential for oil development
and the second to examine the areas
where preparation may be needed in response to development
in South Dakota and in North Dakota.
At the same time,
the legislature formed an interim committee
to study potential legislation to deal
with these important issues.
Although our oil and gas production may not reach the
level of our friends in North Dakota,
the work of the legislature, the Department of Environment
and Natural Resources and others will put South Dakota
in a better position to capitalize on our potential.
If we can't pull oil out of our ground,
let's help North Dakota do so with services
and products in South Dakota.
Another initiative I launched almost two years ago is the
Better Government Initiative.
We all have our lingo.
Better Government aims for less regulation,
more openness, and more efficiency.
This isn't glamorous, but it's important
and we made progress this year.
Let's talk about less regulation.
Conversely, the proliferation of laws and regulations.
One hundred years ago this month
in 1913 Governor Robert S. Vessey stood right here
where I'm standing and gave his State of the State Address.
He said this as part of his State
of the State Address one hundred years ago:
"It is my conviction -- and in it I am not alone --
that the tendency of very many legislative bodies is toward too
many rather than too few new laws.
And I again offer the oft-repeated statement
that there is a demand for the reduction and curtailment
of the amount of legislation biennially passed
by the legislature and placed among our laws."
Governor Vessey was right, and certainly the governor
and the state government agencies also have a tendency
toward more laws as well.
But we must push back.
That's why I'm proud that our Better Government Red Tape
Review had another strong year in finding obsolete
and unnecessary statutes and rules that can be eliminated.
Last year, we eliminated 177 sections and over 26,000 words
from the statutory code and the administrative rules.
This year, we will propose eliminating 650 sections
and more than 78,000 words.
And I want to applaud the folks at the Departments of Health,
Transportation, Revenue, Environment
and Natural Resources, Public Safety, Agriculture,
and Human Services for their work this past year.
Better Government took our Red Tape Review a step further this
year by conducting an exhaustive review of executive orders.
Many executive orders are signed by governors
without a sunset clause, and technically remain enforced long
after their purpose has been served.
I'll be rescinding over 100 executive orders,
dating back as far as the administration
of Governor Archie Gubbrud.
And we're going to examine other executive orders as well.
The second aspect of Better Government is more openness.
Open Government had a banner year in 2012 with the formation
of the Open Government Task Force,
which Attorney General Jackley and I convened this summer.
Although there have been major changes toward more openness
over the last decade, there's always room to improve.
We're grateful for the participation
of Senator Novstrup, and Representatives Bolin and Wismer
on this work group, and I hope you will give the Open
Government bills favorable consideration this session.
The third component of Better Government is the implementation
of e-Government.
You may have heard me say this in the past,
but it bears repeating,
in our digital age state government's motto should be
"Online, not standing in line."
For example, the Department
of Revenue has installed self-service terminals
throughout the state to make it easier for citizens
to renew their vehicle license tags.
The Bureau of Human Resources has moved
to an entirely electronic system for announcing job openings
and accepting applications.
And Game, Fish, and Parks has released a mobile app
that allows you to buy your hunting or fishing license,
or reserve a camping site on your smartphone.
In the past year, the Bureau of Information
and Telecommunications has worked with agencies
to complete 22 different e-Government projects,
and they have another 40 more in process.
These efforts will make government more efficient
and more accessible to our citizens.
That's what good stewardship is about:
We run state government efficiently
to benefit the people we serve.
Another taskforce worked hard in 2012 on criminal justice.
A major expense to our state is corrections,
and I'd like to take a few moments to talk
to you about that today.
Thirty-five years ago, we had fewer than 550 inmates
in our prison system; today we have six times that many.
In fact, South Dakota has a higher imprisonment rate
than any other state in our region.
Per capita we lock up 75% more men than North Dakota
and four times as many women as Minnesota.
Not surprisingly, the growth
in our prison population comes with a price tag.
Our general fund spending on adult corrections has more
than tripled during the last 20 years.
You know, when I learned about South Dakota's imprisonment rate
and how much higher it was, I wondered about it.
It honestly surprised me.
And I first doubted the data.
I said, "This can't be right.
They must be counting differently somehow."
Then when the data was proven to be comparable I wondered, "Well,
maybe our public safety is better.
More bad guys locked up, less crime," I thought.
Unfortunately, that isn't the case, either.
Our public safety is no better than places
with lower imprisonment rates.
In fact, if you look over the past 10 years,
17 states have lowered their imprisonment rate.
And during that same time,
all 17 of them also lowered their crime rates.
In fact, the crime rate in those states has fallen twice as fast
as the crime rates in South Dakota.
Our approach isn't better.
If our state policy does not change,
South Dakota's prison population will grow by more
than 900 inmates in the next decade.
That's on top of the current population of about 3,600 men
and women -- an increase of 25%.
We'll need to build a new men's prison and a new women's prison.
The path we are on will cost us an additional $224 million
over the next decade, about $100 million
in increased operating costs for those two new prisons
that will cost us about $125 million.
Is this the best way to spend the taxpayers' money?
Is this the best way for us to improve public safety?
As good stewards of our state government it's our obligation
to carefully consider these questions.
That's why this past July I joined Chief Justice Gilbertson
and your legislative leadership
in forming the Criminal Justice Initiative Work Group.
Top criminal justice leaders and stakeholders from both parties
and all three branches of government --
as well as law enforcement, treatment providers,
prosecutors, and defense attorneys --
all had seats at the table.
I want to thank Speaker Gosch, Senator Bradford,
Senator Tieszen, Senator Holien, Senator Lucas,
and Representative Sly for their hard work as work group members.
The charge to this work group could not have been simpler:
One, improve public safety; two, hold offenders more accountable;
three, give us a better return
on our criminal justice spending.
Now, the workgroup did not have to reinvent the wheel.
The 18 members themselves had more than 250 years
of collective legal, law enforcement,
and legislative experience, and then they drew on input
from more than 400 stakeholders across the state
and a respected Council of Advisors.
The workgroup also looked to the experiences of other states.
In recent years, more than 20 states --
many of them very conservative states like Texas, Kentucky,
South Carolina --
have undertaken what they call "justice reinvestment."
Justice reinvestment focuses resources
on criminal justice tools that are proven to work.
It focuses resources on evidence-based practices --
not based on anecdotes, not based on intuition,
not based on what we think will work, but which has been proven
to work elsewhere and the evidence shows works.
It focuses resources on evidence-based practices
that have been proven in application.
Other states have demonstrated that justice reinvestment works,
and the workgroup unanimously embraced that concept
as the foundation for its recommendations.
Every state is different, and the work group made it clear
that South Dakota data and South Dakota values need
to drive justice reinvestment in South Dakota.
The final report of the work group,
which the legislators received last November,
makes 18 recommendations and I'd
like to mention three of them today.
One of the recommendations is about alternative courts.
South Dakota has fewer drug courts than any other state
in the country, but the drug courts we do have produce
impressive results: Fewer than 20% of the graduates
of South Dakota drug courts and DUI courts
over the last five years have committed new felonies.
That is a remarkable success rate because these offenders,
these offenders are repeat offenders.
They're not first-time law-breakers
who simply need a wake-up call; these are usually people
with serious addictions to drugs
or alcohol who've committed a number
of crimes in recent years.
Getting 80% of them back on the right track is a real success,
and the budget I outlined for you last month contains funding
for expansions of two existing alternative courts
and adds two more.
Drug and DUI courts may be expensive compared
to routine probation, but they're a bargain compared
to the costs of imprisonment.
By holding offenders more accountable
and by giving them one more chance to avoid prison,
alternative courts are changing behavior
and improving public safety.
A second recommendation of the workgroup report was
to implement Hawaii's HOPE program here in South Dakota.
The HOPE program is a lot like our 24/7 Program, but it works
with those abusing drugs, rather than alcohol.
The system works because of swift and certain sanctions.
Each morning, participating offenders must call
into an automated drug testing hotline,
which will inform them whether or not they've been selected
that day to come in for a drug test.
Failing to show for their drug test will trigger automatic
jail time.
Failing the drug test will trigger automatic jail time.
Hawaii has used the HOPE program on hundreds of meth addicts,
and has seen a remarkable degree of success: The offenders
in HOPE have been 55% less likely to be arrested
for a new crime and they're 72% less likely to use drugs.
This success has led to several other similar programs
across the nation, including states like Texas and Oregon.
And initial results indicate that swift
and certain sanctions deter crime
and save correctional dollars.
Here in South Dakota, we'd like to begin this program
with one urban pilot project and one rural pilot project.
And if these pilots are successful,
we can implement the program statewide.
The final work group recommendation I'll discuss
today deals with increased supervision
of offenders within the community.
More than 80% of those admitted to prison
in South Dakota each year are convicted of non-violent crimes.
I'll say that again: 80% of persons admitted to prison
in South Dakota each year are convicted of nonviolent crimes.
Prison is an expensive place to change offender behavior,
and studies have shown
that prison is not the effective place to treat those with drug,
alcohol, and mental health issues.
Sanctioning those offenders
in other ways will be less expensive and more effective --
less expensive and more effective --
than doing so in prison.
For that to work, though, we need additional treatment
and supervision capacity.
We can't send more probationers or parolees
out into the community without more court service officers
and probation officers to supervise them.
The work group recommends, and my budget proposes,
funding to build that capacity.
Investing those dollars today will save millions
in prison costs.
Now, this set of proposals -- and I've just mentioned three
of them -- this set of proposals is not about being soft
on crime, it's about being smart on crime.
If implemented, the recommendations
of the final report are estimated
to save our state $200 million in averted construction
and operating costs over the next decade.
More importantly,
these recommendations will hold offenders more accountable
and make our state safer.
What more could we want?
Save money, make offenders more accountable,
and make the state safer.
It's a win-win-win.
We aren't relying on speculation or wishful thinking, either.
As I mention, these recommendations are not based
on intuition, they're not based
on what we hope might work as a trial.
Data matters, and the data prove
that justice reinvestment has worked in states
across the country: In Texas, they've saved $2 billion
and 17,000 prison beds;
in Connecticut probationer re-arrest rates have been
reduced by 11% and the state has been able to close one
of their prisons, saving more than $3 million a year;
in Maryland offenders under a new intense supervision program
are 38% less likely to be arrested for new crimes.
Being smart on crime works.
Our state faces a clear choice: Down one path, we can continue
to build prisons and allow corrections
to consume an ever-increasing proportion
of taxpayers' dollars; the alternative is
to follow the path blazed by almost two-dozen states
across the country, a path that makes us safer and one
that will save our state millions of dollars.
I support that path, and I'm not alone.
The proposed legislation you will consider has been endorsed
by the Sheriffs Association,
endorsed by the Police Chiefs Association,
by victims' advocates, the States Attorneys Association,
judges, treatment providers, by the counties,
by our State Attorney General, by legislators,
and by the Chief Justice of our Supreme Court.
Following the State of the State today,
I will join Chief Justice Gilbertson
and legislative leaders in the Senate Chamber
as we file the South Dakota Public Safety Improvement Act.
As our nation's capital continues to struggle
with gridlock and partisanship, South Dakota is again going
to be an example of how our government leaders can use
common sense and shared values to work together.
[ Applause ]
Thank you.
I have two more proposals I'd like to talk to you
about today before my closing remarks --
first, about our unique opportunity
to create a new state asset at Blood Run.
Long before white settlers came to what is now South Dakota,
a number of Native American tribes gathered along a winding,
wooded creek to trade, bury loved ones, and establish bonds
of peace and friendship.
Rolling hills, broad floodplains,
rock-covered burial mounds,
and steep riverside bluffs mark the area --
one of the oldest sites
of long-term inhabitation in America.
In 1970, the National Park Service designated this peaceful
place southeast of Sioux Falls
as the Blood Run National Historic Landmark
because of its significance to our shared history.
This year, I will propose legislation
to make this site South Dakota's 13th state park.
As the first new state park since 1973,
this unique location will provide new educational
and outdoor recreation opportunities for our citizens.
And I invite you to join me in supporting this new state park.
The second proposal I'd like to describe is about spouses of men
and women in the military.
I mentioned earlier my trip to Afghanistan and Kuwait.
And again, seeing our troops overseas is a reminder
of the sacrifices they make to protect us all.
And it's not just these brave men and women
who make sacrifices, their families sacrifice as well.
They pay a price.
As we know, just as we have military men and women overseas,
there are other servicemen and women serving much closer
to home -- here in South Dakota.
Many of them are stationed at Ellsworth Air Force Base.
My proposal today -- my last proposal today --
is for these families.
Thirty-five percent of military spouses in the workforce are
in professions that require professional licensure
or certification.
When a military family is transferred to our state,
that family should not lose earning power
for an extended period while a spouse seeks licensure
in South Dakota.
I'll be proposing a Professional Licensure Portability Bill
for military spouses.
This bill will streamline the process
so that a military spouse with a license or certificate
in another state can easily transfer into South Dakota.
Nearly half our sister states have approved similar
legislation, and I hope you will vote
to have South Dakota join those states.
Before I close, I'd like to visit one other topic --
the fiscal situation of our federal government.
I know most legislators were here last month
when I last spoke of this, but it bears repeating for those
of you who were not here, as well as for viewers
and listeners who did not hear the budget speech.
Moreover, because of last week's congressional action,
I can also update you on this situation.
The federal government's financial situation is
very significant.
Can you advance the slide there?
Federal fiscal year 2012 ended last September 30.
For that year, revenue was about $2.4 trillion.
We spent about $3.5 trillion.
The deficit for the year, as you can see, is $1.1 trillion.
And this is the graph I showed you last month,
showing the deficit.
The sequester cuts, which were scheduled
to take effect last week would have reduced federal spending
by about $120 billion a year.
The cutout area on the blue bar shows how the spending would
have been cut by the sequester.
The cutout on the red bar shows how the cuts would have reduced
the deficit.
Look at the size of those cuts in relation
to income and expenses.
The impact shown is the entire sequester, not just the part
of discretionary spending, but also the military cuts as well.
These so-called "drastic" cuts that everyone wanted
so desperately to avoid are just a sliver
of what we need to face.
And we couldn't even face that.
We postponed those cuts until March 1.
Who knows what will happen on March 1.
Look at the green bar.
What about revenue?
Another way to reduce the deficit is to increase revenue.
And in the months and weeks leading up to last week,
there was heated partisan debate.
All the Sunday news programs had partisan debate
about this, raising taxes.
Most of the debate surrounded whether higher incomes should be
taxed at a higher rate.
In the end, Congress adopted legislation --
and the President signed it --
that creates a higher marginal rate in 2013, the year we're
in right now, for individuals earning over $400,000
and couples earning over $450,000.
Taxes on capital gains will also be higher this year.
Taxes on virtually all other income will remain
at the lower levels established in 2001, 2003, and 2010.
Will that solve the problem?
What will that do for us?
Let's take a look.
The increased taxes on higher incomes will reduce the deficit
by $600 billion over ten years, or about $60 billion a year.
But that's not the only tax increase.
Another tax increase will impact the deficit.
Three years ago, as a response to the recession,
payroll taxes were temporarily reduced by 2%.
That reduction expired last week.
The resulting increase
in payroll taxes will reduce the deficit, depending upon
who you ask, by somewhere
between $95 billion and $115 billion.
I'm just going to call it $100 billion for simplicity.
The revenue bar has now been lengthened
and the deficit bar has been shortened to show you the share
of the deficit bridged by the tax changes on top
of the deficit, which would have been bridged by the expenses.
Look at the deficit that remains.
Remember -- this isn't the federal debt;
this is just the deficit for one year.
And the red bar really is shorter than it should be.
And the spending bar is shorter than it should be
because those cuts shown were not enacted.
They were postponed to March 1.
If they take place, this is what would happen.
Remember the analogy I used in the budget address --
cut off the zeros from all these numbers.
In 2012 our nation had an income -- pretend it's your child --
they had an income of $24,000, they're spending $35,000.
And their credit card debt was $163,000.
Imagine that's your child.
What would you think of that situation?
The new tax law changes have given us a little more income,
so now instead of making $24,000 your child's making $25,600.
I mean, it's a good step, but it's still a long way
from what we need to do.
If all of the sequester cuts take effect on March 1,
our expenses will be cut to $33,800 a year from the $35,000.
So instead of an $11,000 gap that your child has,
they have an $8,200 if the sequester cuts take place.
And that's a big "if."
And we've done nothing at all to reduce our credit card bill,
which was $163,000 last month.
Now it's $164,000 a month later.
And at this rate, by the end of the fiscal year,
it will jump up to $172,000.
Now, I'm not trying to be an alarmist and I'm not telling you
that I have the answer.
Still, I think that as good stewards of our state,
we need to understand the scale of this problem.
We need to think about what this means for our future,
and what it may mean for the dependability
of federal funds upon which our state, our school districts,
and other local governments depend.
As you can see, these are challenging times
for South Dakota and for our nation.
Our economy continues to recover,
but the federal government is placing more burdens
on our state.
We continue to support our troops overseas, even as here
at home we faced floods, fires, and drought.
It isn't an easy time to be here in Pierre.
I suppose it never is.
But our economy is strong, our budget's balanced,
our state is structurally sound because of the good stewardship
that we've shown these past two years, and even more so because
of the good stewardship of dozens of governors
and thousands of legislators who have come before us.
[ Applause ]
We have not forgotten that this government belongs
to the people.
We've remembered our South Dakota values of self-reliance,
persistence, frugality.
And we've shown our nation that good stewardship, strong values,
and a little common sense can lead to a stronger budget,
a stronger economy, and a stronger South Dakota.
That's why I'm optimistic about our future.
I know that in South Dakota we have always done what it takes
to overcome adversity and emerge into greater prosperity.
Let's be good stewards this session.
Let's be courageous and creative
in finding solutions while showing great respect
to our colleagues and our constituents.
Let's get to work.
[ Applause ]
>> Stephanie Rissler: And that will wrap up the 2013 State
of the State Address given by Governor Dennis Daugaard,
his third State of the State Address
since becoming the Governor of South Dakota.
He began the speech indicating this could be his shortest State
of the State speech.
He ended it with some positive reinforcement to our lawmakers,
encouraging them to get to work, also saying that we are dealing
with challenging times and the federal government continues
to put burdens upon South Dakota.
But the good news is because of good stewards
from previous legislatures, previous governors,
South Dakota is in a good place.
We have a balanced budget.
And if we continue to work on that issue
of being good stewards to the taxpayers
that sent the lawmakers here,
South Dakota will have a stronger economy
and we will be better off in the long run.
Right now the Governor is exiting the House
of Representatives.
Delivering his speech we have a joint assembly
of the legislature, senators, and representatives here
to listen to what the Governor had to say.
Not a whole lot of new news given today.
A few issues or proposals that he hopes to bring
up during this legislative session,
but much of the beginning he talked
about how things have been going on over the past year.
He provided some updates since lawmakers left Pierre in March.
He talked about some improvements that need
to be done at our state capital building.
He gave some history on our 103 state house --
of course, our building in Pierre,
our state capital building.
He talked about some of those improvements.
But the judicial system seemed to take center stage today.
There was no mention of education,
a lot of issues relating criminal justice.
He talked about a work group,
and from that work group there are three things
that he wants this work group to really focus on.
It's going to be improving public safety,
making defenders accountable for their actions, and a return
on the criminal justice spending.
A variety of individuals participating in the work group.
Of course our Chief Justice, David Gilbertson, the Governor,
Speaker of the House Brian Gosch.
From the Pine Ridge area, Jim Bradford, a Democrat.
From the Mission area, Senator Larry Lucas, another Democrat.
So a wide group of folks coming together
for the Criminal Justice Work Group.
And from that, we probably will see some proposed legislation
coming through.
One of those is a program called HOPE,
which the Governor says is being used in Hawaii
when drug offenders -- when they are prosecuted and they need
to get straight, they have to call into an automated system
and that automated system tells them whether they had they need
to come in and do some type of a test.
If they fail to show up, it's automatic jail time.
One of the things that the Governor talked about,
80% of those in our prison system are
from nonviolent crimes.
Prison is an expensive place to get clean,
yet the Governor feels with some of those proposals coming
from the work group it will be more efficient to take care
of our crowding prisons,
which is another thing we're going to hear about.
Within the next decade,
$224 million additional dollars will be needed
to handle the growing number of prisoners going
into our state system.
The need of a new prison, both for our females
and our males is something that is also going to be expected.
So what the Governor really talked about is an update as to
where things have been over the last year and how we need
to move forward as a state.
What are some of the those issues
that state lawmakers could tackle today to put South Dakota
in a better place, whether it's five years
or ten years down the road?
We're going to have some follow-up interviews now.
We'll go ahead and begin that.
I understand Cara Hetland is already
on the floor with a member.
>> Cara Hetland: I am, Stephanie.
Thank you very much.
And Senator Billie Sutton is joining me now
on the Senate floor for a reaction.
But just a minute, we need to get a page --
you're in our camera shot.
That's all right.
Now you can see us and Senator Billie Sutton is here.
Thanks so much for joining us.
And your reactions to the State of the State Address and some
of the proposals that the governor laid out?
>> Billie Sutton: I got to give the Governor quite a bit
of credit, especially with the criminal justice initiative.
You know, adding a couple more drug courts, you know,
increasing community involvement.
I think it's a step in the right direction.
And I, you know, looking at it right now it looks
like something that I'll be able to support
and hopefully many other legislators will also.
You know, there's a lot to the bill.
So we got to dig through a little more.
But it seems to be a step in the right direction.
I'm glad we're looking at more of an investment to try to cut
down the costs because we all know how expensive it is.
I also, you know, like making Blood Run a state park.
I think that's a good thing as well.
You know, so I think there were some very good things
that we saw.
I would have liked to see maybe some more discussion
about education, even though, you know,
the ballot measure didn't pass to, you know,
raise the sales tax, I don't think that means
that the public is done having the conversation
about funding education.
You know, I think from the people that I've talked to
and a lot of constituents, there's still concern out there
that we need to take at look at long-term funding, you know,
for education and as well as taking a look
at economic development.
But I think this is going to be a really good session
to come together as a legislature
and have some really good discussions about education,
and Medicaid, and economic development.
So I really look forward to working with other leadership
to have those discussions.
>> Cara Hetland: You know, last session education was
in the forefront of conversations.
And is it all about funding, or is there different kinds
of conversations that need to be had about education
and some kind of reform?
>> Billie Sutton: Yeah, I don't know.
I think the concerns I've heard is mostly about the funding.
You know, with House bill one, two, three, four going down,
which, you know, had a -- Governor's reform bill --
with that going down, I think that kind
of stopped some discussions with reform, but now that's not
to say that some of those won't come back by themselves,
you know, because it was a pretty inclusive bill.
You know, it had four or five different portions
that were all separate in their own right.
So some of that could come back and maybe it will.
But discussions I've had with legislators and constituents,
that funding for them is still at the forefront.
Just to make up for, you know,
the cuts that were made a couple years ago,
especially where our revenues have increased quite a bit.
>> Cara Hetland: And your own personal legislative priorities
this year include what?
>> Billie Sutton: Well, I'm the Appropriations Committee and so
that takes up a lot of our time.
So, you know, my priorities mostly include dealing
with the budget.
And, you know, I think one-time money is going
to be a big conversation this year just because there's a lot
of it available and it has been over the last couple years,
and that kind of stems from our revenue projections.
So, you know, I think that will be pretty important
to discuss that.
And so most things I'll be dealing
with will be budget-oriented and hope to work
with all the members of the committee to do the best we can.
>> Cara Hetland: All right.
Senator Sutton, thank you so much for joining us today.
And we'll go back to Stephanie Rissler.
>> Stephanie Rissler: All right.
Thank you, Cara.
We are now joined by Senator Tim Rave from Baltic.
The new Assistant Majority this year, welcome.
>> Tim Rave: Thank you.
Thanks for having me up.
>> Stephanie Rissler: First thing, obviously your thoughts
as the Governor delivered the 2013 State of the State?
>> Tim Rave: Well, I thought it was just a really good overview
of the past two years.
You know, he touched on how we've been good stewards
of the state and really balanced the budget and put us
in a really good position going forward financially
and give us the opportunities
to do some different things this year, especially as he touched
on the criminal justice reform package.
And it's going to have some costs associated
with it, some one-time costs.
We also talked about the Yankton buildings and the pine beetles,
which are -- you know, the pine beetles are just a huge concern
some of us east river don't think about every day
but west river, it's a huge concern for those of us who go
to the Black Hills on a pretty regular basis.
So, yeah, just -- I mean, just really kind
of a great overview I thought.
>> Stephanie Rissler: Now,
you sit on the Senate Education Committee, there was not a lot
of discussion if any about education;
your thoughts on that?
>> Tim Rave: Well, you know,
certainly last year was all education, all the time.
And then of course we had all education on the ballot.
And I think just maybe in light of some
of those ballot initiatives and the way they came out,
I suspect he may have been just, you know,
maybe a little reluctant to even have those battles this year.
You know, but I don't think
that that means there won't be anything education.
I think, again, as it always has been
in the 11 years I've been here, a hot topic.
And, you know, like, personally I'm going
to bring a bill that's going to deal
with the scholarship portion of some of the package
that we had last year that I think has a lot of support but,
you know, that gets wrapped up in that package and is lost.
So I'm looking forward to bringing that.
And I think you'll see other members bring other pieces
of education platform and also some education funding,
obviously, will come up as well.
>> Stephanie Rissler: My final questions for you and kind
of touched on it, the whole issue of the criminal justice.
The Governor talked about our increasing number of prisoners,
an additional $224 million may be needed;
do you foresee criminal justice being a big issue this session?
>> Tim Rave: Yeah, I think it's going
to be actually the centerpiece of what we're going
to start talking about.
It took up a full, I think, one-third of the speech today.
And, you know, when you're talking
about adding 900 prisoners on top of the 3,600
that are already in prison and that's a 25% increase.
I mean, we have to do something.
And, you know, I think we've got a great working platform
to start with, with what the committee brought forward
this year.
So I look forward to having those discussions.
And I think we're just going to come out with some great stuff.
>> Stephanie Rissler: All right.
Thank you for joining us.
Senator Tim Rave from Baltic.
We'll now throw it back down to Cara.
>> Cara Hetland: Thank you, Stephanie.
And joining me now is Julie Bartling,
the Assistant Democratic Leader in the House
of Representatives from Gregory.
Thanks for being here.
Some things that were kind of omitted
from the Governor's State
of the State Address, let's start there.
>> Julie Barling: Yes.
I was a little bit concerned that he did leave out the parts
that are really quite important: Education, Medicaid funding,
and pieces about economic development --
those are all issues that come before us every year
and he didn't address those.
And I don't know if that was just done simply
because he really related to them in his budget address
or if it's such that he's going to leave a lot of that
to the prerogative of the legislature to work on some
of those issues and to hopefully enhance some our funding
and growth in those areas.
So I personally look forward to working not only
with the Executive Branch, but with the --
across the aisle and the House and the Senate
to see what we can do for more education, Medicaid funding,
and then advance economic development.
>> Cara Hetland: And it's all about finding the dollars,
the necessary money available for those programs.
>> Julie Bartling: Absolutely.
But as the Governor said, there's about $26 million
that has fallen per se to the bottom line
and that he's leaving that a little bit
to the legislature to deal with.
And I think there's a lot of interest on parts
of all legislators to do what we can
because certainly those areas
of our budget have been hit extremely hard.
And in my opinion, our most vital resource and our growth
in economic development begins with our children.
>> Cara Hetland: It's been a while, though,
since you've had some spending money to allocate, right?
>> Julie Bartling: Yeah, it's been a few years.
You know, and South Dakota weathered the recession really
quite well, you know,
considering what's happened around the country.
And so having that money only after a few years, you know,
to fall to the bottom line
and to be there is quite extraordinary
and it's the resiliency of our state.
And I believe we as legislators need to take that and look
at what our constituents have wanted,
especially during our campaigns.
And we need to work for that
and do what is right for South Dakota.
>> Cara Hetland: Your reaction
to the judicial reform legislation?
>> Julie Bartling: I'm pleased with it.
I've been out of the legislature the last couple years,
but I did hear about the committee
that was working on that.
And that is something that has been needed,
is criminal justice reform.
There are probably parts of the bill
that not all legislators will like
and not all people will like,
but it sure takes a huge stride forward in alleviating the cost
of our criminal justice system.
Certainly, you know, the violent offenders will still be dealt
with as appropriately but the nonviolent offenders, you know,
we need to find ways to help rather than to hold things down
and let those offenders get back into society, and be productive,
and save South Dakota and the citizens a lot of money.
And we'll be able to do that.
I'm excited about the bill.
>> Cara Hetland: Representative Bartling,
thanks so much for joining us today.
And we send it back to Stephanie Rissler.
>> Stephanie Rissler: All right, thank you Cara.
I'm now joined by Senator Corey Brown.
He's from the Gettysburg area.
Thank you, Senator, for joining me today.
Just quickly your thoughts on what you heard?
>> Corey Brown: You know, it kind of struck me
because I thought back to two years ago and the tension
that kind of surrounded the legislature
as we were facing pretty big budget issues.
And as he comes in to give his State of the State today,
I think the atmosphere is certainly much more relaxed.
And I think you can tell both the Governor
and the legislators are looking forward to really trying to work
on some positive legislation for South Dakota this next year.
>> Stephanie Rissler: Let me ask you about the gas and oil issue
that the Governor brought up.
He made the comment, "If we can't drill it here,
let's help our friends up in North Dakota and provide them
with some tools and resources."
I'm wondering what you think about that?
>> Corey Brown: I think that's actually a brilliant strategy.
And I think to some degree we've already begun doing that;
it's just a natural consequence.
I have no doubt that at some point we're going
to see some oil development here in the state, it's a matter
of how long that's going to take.
So given some of the shortages that they have up there,
I don't know why we as South Dakota wouldn't want
to put ourselves in a position to be able to provide some
of those things to our neighbor to the north.
>> Stephanie Rissler: Last, I know you were influential
or at least you helped with some of the health issues.
The Governor talked about South Dakota Wins
and how we've really been able to provide
or improve the quality of healthcare in our rural areas.
As you mentioned before, you kind of helped with making
that possible; your thoughts as you listened
to him talk about that today?
>> Corey Brown: Well, you know, I was coming
from the small town of Gettysburg.
I was certainly honored and excited to be a part
of the effort this summer to talk
about our healthcare workers in rural communities.
It's a reality across this nation
that it's not just rural communities, but if you look
at the potential shortages of doctors and PAs and nurses
across the entire country, it's pretty alarming.
And then you throw in a rural factor on top of that,
we as a state are going to need to do some very specific things
and have a committed attitude in order to be able
to staff our rural and small town hospitals and clinics.
And so I see this as a good step forward.
I'm also pleased to see that one of the follow-ons
to that effort was that the Governor wanted
to create an oversight committee which is going
to continue the work that was already started this year
and push these issues forward
and we're able to accomplish them.
>> Stephanie Rissler: All right.
Well, I wanted to thank you for joining us, Senator Corey Brown
and our newly-elected President Pro Tem over in the Senate.
So congratulations.
>> Corey Brown: Thank you, Stephanie.
>> Stephanie Risller: All right, we're going to continue.
We've got about one more interview
that we're going to do here.
Rarely do we ever get to visit with some
of our newly-elected state lawmakers,
but we have invited one of those new faces to come on in.
Representative Mark Mickelson, thank you for joining us today.
>> Mark Mickelson: Yeah, I'm glad to be here.
>> Stephanie Rissler: As I was telling our viewers,
rarely do we ever talk to our newly-elected members
so I'm glad you were able to come visit us.
What did you think about what you heard today?
>> Mark Mickelson: Well, I wish there were more states
like South Dakota and our country wouldn't have the
financial mess we're dealing with.
So proud to be here and proud the way this state's been run
and I'm glad the Governor and the legislature are continuing
to run it in a financially responsible manner.
>> Stephanie Rissler: As a new member of the 88th legislature,
what are some of those issues
that you are going to follow closely?
>> Mark Mickelson: Well, the part that caught my attention --
other than the main part of the Governor's remarks --
were his remarks about workforce development and the funding
that he made available to expand the welding program in Mitchell,
expand the welding program in Watertown,
expand the welding certification program at the prison.
And then also some training money that he made available
to certify individuals so that they frankly could have a better
skill set and get a better job, be more productive,
and help the employers out at the same time.
So that is an area that I have a keen interest in
and I'll be paying a lot of attention to it see
if and when I can help.
>> Stephanie Rissler: Sometimes we'll see new lawmakers
introduce legislation, sometimes they sit back and kind of wait
to see how things turn out;
any idea if you'll be introducing anything yet?
>> Mark Mickelson: Well, I will be honest with you, another part
of the Governor's remarks is there's 105 people
that come here to legislate
and they all think they have a lot of good ideas.
We probably have plenty of laws.
So there are some issues that I care deeply about.
My thoughts won't necessarily be new and the issues aren't new,
so I'm going to take in a fair amount
of what's already happening with respect to the issues
that I care deeply about and then figure
out whether there's an appropriate place for me
to get involved as a sponsor.
I have been approached on what I will consider a very relatively
minor -- potentially very noncontroversial --
issues by several constituents
and I'm evaluating those right now.
>> Stephanie Rissler: All right.
My last question before we say good-bye.
I want to talk to you about your father,
former Governor George S. Mickelson.
What were your thoughts today as you were being sworn in?
>> Mark Mickelson: Well, it's a great question.
My memories of my dad in Pierre were of him as a legislator.
I was not living in Pierre when he was here.
And I used to come out and visit him
when he was a state legislator
in the '70s representing Brookings County.
And the desks have not changed; a lot of it's the same.
And, you know, I'm kind of glad.
You know, I looked at the Mickelson sticker
and it's Lincoln and Minnehaha County
and it's kind of a new day.
And I'm glad to be here.
And I will certainly bring the upbringing that he
and my mother had with me and the values they instilled
to bear as I'm making decisions here in Pierre.
>> Stephanie Rissler: Well, it's a pleasure to meet you,
sir, and good luck to you.
>> Mark Mickelson: Thank you very much.
>> Stephanie Rissler: All right.
And of course that is Representative Mark Mickelson
from Sioux Falls.
That will wrap up South Dakota Public Broadcasting's coverage
of the 2013 State of the State Address.
Just a reminder, this kicks off SDPB's coverage of State House.
Everything can be viewed, seen, looked at online at sdpb.org.
And don't forget live gavel-to-gavel coverage
of the House of Representatives starting at 2:00 p.m. on SDPB2
and of course, the Senate will follow.
And look for all of those wonderful radio news stories
as they happen.
For all of us with South Dakota Public Broadcasting,
I'm Stephanie Rissler.
We appreciate you being with us.
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