2021 S.D. Legislature: Appropriations Committee to preview ‘22 budget

This week sets the stage for the budgeting portion of our next legislative session. As I write this article, we are looking forward to a meeting of the Joint Committee on Appropriations this Monday at which we will cover some of the issues that have been brewing over the summer.  

Issues being covered include a review of what has been done to plan for future cleanup work on the Big Sioux River as well as what will be done to control future contamination of the Big Sioux River Watershed. We will also receive the Committee report from the Board of Regents as to issues concerning the function of institutions under the control of the Board of Regents. That includes:

• The possible consolidation of administrative functions within the Universities as well as across multiple universities;

• Whether there is a duplication of program offerings;

• A review of academic majors with low enrollments and low numbers of graduates;

• A review of activities outside of the core mission of the university system which should be teaching, learning, and research;

• A review of the operations and functions of the central office of the Board of Regents;

• A review of the viability of the university centers; and

• Any other possible cost-effective measures that might be considered.  

This is long overdue when we see how far universities have strayed from their original purpose, and it’s long overdue when we compare the salaries of those within the universities to all other state employees. Each community that is home to a university will want to defend the existence of those institutions as well as every dollar that is spent there. However, we are stewards of the tax dollars and tuition dollars that are placed in those coffers.  

We will also review issues associated with the Human Services Center as well as the costs associated with community support providers across the state. This information is part of the policy discussion that is important for long-term management of these services.  

And this week the Governor’s Budget Address will be the first that the Legislature will hear about spending plans for the upcoming year. The question all South Dakotans should be asking is “Why doesn’t the Legislature compose its own plan for expending the revenue received by the state?” When I served as Speaker Pro Tem, I asked, on behalf of the entire legislature, that each agency would provide to me by the end of August that agency’s budget request for the upcoming year. It was for the very reason that the Legislature is essential to the long-term planning process for state government. I did receive a response from a couple of agencies, but it appeared that the other agencies were cautioned against disclosing their budget requests and I never did receive any further agency information.  

Over the decades in South Dakota the power of shaping policy and making budgeting decisions has shifted to be nearly exclusively the province of the Governor’s office. That has resulted in an imbalance of the expenditure of revenue. What I mean by that can be shown in this example. This past year we paid our South Dakota Supreme Court Chief Justice $148,000, while at the same time we paid two of our university presidents a base pay of $391,000 – a quarter of a MILLION dollars more. At the same time, the Supreme Court functions with a very small staff whereas the universities have no fewer than 10 or more administrators who earn far more than the Chief Justice, not to mention the large number of support staff for each of those university positions. I’m not focusing on just the universities, but it is one of the glaring examples that shows why the Legislature should be involved in budget planning which, ultimately, shapes policy.

As we go into the next election cycle, I ask all voters to be well informed as to those who will ask to serve as your elected leaders. Ask them the hard questions about whether they truly understand policy planning for the various agencies, whether they support limited government and what that looks like, and whether they intend to strike that appropriate balance between the Legislature and the Governor’s office.  

As always, feel free to contact me (steven.haugaard@sdlegislature.gov) with questions or comments. You can also go to www.sdlegislature.gov to listen in on the meetings or to see what else is happening in state government.