Governor Dennis Daugaard gave his State of the State Address to lawmakers on Tuesday. Here is a rundown of the highlights.
You can find the entire address archived here.
Education
Governor Dennis Daugaard wasted no time getting to the biggest issue of the 2016 legislative session, namely education funding. He tackled the issue at the top of his State of the State address.
Daugaard says South Dakota must act to increase teacher pay and overall education funding. He says the low teacher pay has led to a critical teacher shortage. Daugaard says the incoming pipeline of teachers won’t meet the needs over the coming years. According to the governor, the problem can’t be fixed unless teacher salaries are increased. Daugaard proposes a one-half cent sales tax increase to boost education funding.
“South Dakota’s average teacher salary is just over $40-thousand. I’m recommending we set a target average of $48-thousand five hundred. That would be our goal. At that level South Dakota would be competitive with surrounding states and we would no longer be 51st in the Nation,” says Daugaard.
Daugaard says high student achievement requires high quality teachers, and the only way to attract top tier teachers is to offer competitive wages.
“We all want what’s best for our children. We want to provide them with a quality education and we know that requires a strong workforce of great teachers. This is the year. This is the year to get out of last place. This is the year to act. Let’s join together this year to strengthen our schools and keep our promise to the next generation, says Dauaggard.
His proposal must receive approval from state legislators who begin the 2016 legislative session this week.
One South Dakota Educator says she’s giddy following the governor’s proposal. South Dakota Education Association President Mary McCorkle says it won’t be easy but she is optimistic the work can be done to see education funding increased appropriately in South Dakota.
“I think we have to focus on the future. We have to focus on attracting teachers, to retaining those teachers, and to helping them to build their profession. And, the Governor’s plan will begin that process, and we’re very optimistic,” says McCorkle.
While some Democrats expressed a need for a bigger increase to teacher salaries, some in the GOP question if increasing taxes is the right solution. There are lawmakers on both sides of the isle who say they support Governor Dennis Daugaard’s plan to increase money for education. Two members of the Blue Ribbon Task Force say the governor is making adequately funding schools a priority. Both lawmakers anticipate some changes to the governor’s initial plan.
Governor Dennis Daugaard wants to increase the sales tax by half of one percent to generate millions of dollars for education. He says schools can use the money to increase teacher pay, and the state can implement a mentoring program among other tools.
State Senator Deb Soholt co-chaired the Blue Ribbon Task Force.
"I just have to say that I’m extremely pleased and very excited about what the Governor had to say in the State of the State about the Blue Ribbon Education Task Force work, but then also more specifically about the proposals that he’s bringing forward that are just so important to ensure that we have great teachers in the classroom for our kids," says Soholt.
Soholt says some of the plan’s nuances are different than the Blue Ribbon Task Force recommendations. She says the plan is likely to change as lawmakers consider school funding.
The governor’s proposal shows a sales tax increase of one half of a cent generates about 107 million dollars. He wants 40 million of that to go to property tax relief. The millions left and 19 million dollars from a pension levy produce a final numbers of more than $86 million dollars for schools.
Democratic State Senator Billie Sutton says the dollar amount should be higher.
"At the end of the day, what that means for our plan is that it’s going to cost $122.5 million dollars. Again, that’s $122.5 million dollars is what we view the target as. In order to fund that, we are proposing a one penny sales tax with removing the sales tax on food," says Sutton.
Sutton says that plan can generate up to $130 million dollars, which allows them to include suggested programs for recruiting and retaining teachers. He says Democrats also want to change the student-to-staff ratio the governor’s plan uses to allocate money to schools. He says that change specifically benefits small schools.
Sutton and other Democrats say they agree with Republicans that the governor set the right tone by focusing on education funding.
Medicaid Expansion
Governor Daugaard says the state will benefit from expanding Medicaid under the Affordable Care Act. Daugaard says the move could save the state money and increase healthcare coverage for those in need. But he adds that he will only support Medicaid Expansion if it can be done in a way that doesn’t draw down the state’s general fund. He says the state can end its support if the Affordable Care Act is changed or repealed
“I would support, and I hope that you would pass, trigger language that if the Federal Government changes the deal, South Dakota would withdraw from the program. If a Republican President and a Republican Congress would be elected in 2016, the federal health care law could be repealed entirely. Regardless—regardless of if the federal funding goes away, so should the program. But even in that case, however, I am optimistic that our efforts to fix the I-H-S issue, and the improvement in Native American Health Care, would remain. Even if the Affordable Care Act is repealed entirely.”
Daugaard says state officials should know by the end of this month whether South Dakota’s plan to expand Medicaid is acceptable to the Federal Government.
Governor Dennis Daugaard says the expansion of Medicaid to cover a broader swath of state residents will not only help the working poor but also Native Americans. Daugaard says the federal government has a treaty obligation to pay for the healthcare of Native people. He says when the federal government fails to fulfill that obligation the cost falls to the state. He says expanding Medicaid will save state funds that are now going to support Native health care.
“If this plan is adopted the new relationships between HIS and Healthcare providers will allow Native Americans to get better healthcare. IHS will be able to use telehealth to get better primary care. If a Native America is available for Medicaid the state will no longer bear half of this expense for this treaty obligation. This deal makes sense for South Dakota,” says Daugaard.
Daugaard says there are things about Medicaid expansion he doesn’t like. But he says South Dakota Legislators owe it to the people to take a hard look at the advantages. Some GOP Lawmakers have expressed opposition to the proposal while many Democratic leaders are in support.
Spearfish Canyon State Park Proposal
Part of Spearfish Canyon may become a new state park under a proposal by Governor Dennis Daugaard. The governor says the new park would include 72 acres in the middle of the Canyon near the historic town of Savoy.
“My hope is to establish Spearfish Canyon State Park in the northern Black Hills. The proposed state park would contain iconic natural features in the canyon. Including Roughlock Falls, Spearfish Falls, Spearfish Creek, Little Spearfish Creek and fishing ponds,” says Daugaard.
Governor Dennis Daugaard says a plan is underway to transfer the land from Barrick Gold Company and federal government to the state of South Dakota. He says the Spearfish Canyon Foundation is helping to fund the purchase of private land in the agreement.
Daugaard says South Dakota US Senator John Thune is backing the proposal. He is asking state lawmakers to support the land transfer as well.
Corruption Response and Transparency
Governor Daugaard says he’s disappointed at recent accusations of financial wrongdoing in state government and he’s working on changes. The governor is telling lawmakers he wants to improve what he refers to as internal controls. He says greater diligence would help reduce or avoid issues like the accusations of financial abuse that surround the Mid-Central Education Co-op in Platte. The Secretary of Education ended the Co-Op’s administration of the Gear-Up college preparedness program for Native American students.
“Like every South Dakotan, I am disappointed and disheartened when I learned about financial wrongdoing. I’m also frustrated of the necessarily slow pace of criminal investigations; and like you, anxious to know the whole story. When a situation like this arises, it is important to handle it in an upfront and forthright manner—and that’s what I’ve tried to do. First, we report to law enforcement and request an investigation. Second, do everything possible to aid in that investigation. Third, share that information with the press and the public as soon as the investigation allows. And finally, invite audits and reviews to determine areas to improve, and act quickly to implement those recommendations.”
Daugaard says the state’s transparency ratings are improving, but he says government can do better when these situations arise.
Prison Reforms
Governor Dennis Daugaard says recent reforms to the correctional system have reduced the prison population in South Dakota. He says the changes are saving millions of dollars. Daugaard says the Public Safety Improvement Act adopted by the state legislature in 2013 is using alternative forms of punishment rather than prison. He says new programs like Drug and DUI courts are working. Daugaard says it will take a few more years to see the full impact of the reforms.
“The early data is promising and I’m hopeful these reforms will save the state money, hold offender accountable and make south Dakota an even safer place,” says Daugaard.
Governor Daugaard says the changes to the Juvenile Justice system are also reducing the number of young people placed in detention. He adds the new statutes seek alternative sentences for young people who get in trouble. He says the changes include new ways hold youth accountable and to reward positive behavior.
VA Home Opening
South Dakota will open a new Veterans’ Association home in Hot Springs this week. The project has been in the works since the Legislature approved the facility three years ago. Governor Dennis Daugaard says officials cleared several hurdles to make the new building a reality.
“Many of you were here in 20-13 to support construction of this new home, and no, it has not been easy. Our first request for federal grant support was denied. Then, even as we overcame that initial setback, bids for construction were millions of dollars beyond architectural estimates, and available funds. The Lieutenant Governor, and the South Dakota Department of Veterans Affairs, spent many hours considering alternate design, and working with the VA. After months of long meetings, the federal VA agreed to extend the state’s grand, giving us time to reduce the cost of the project, without additional state funds.”
Daugaard says the first veterans will move into the home on Wednesday January 13th. He says a grand opening and public tours will take place this spring.
Lawmakers now consider all of the Governor’s proposals as they begin the 2016 legislative session in Pierre.
