SIOUX FALLS, S.D. (KELO) – South Dakota Gov. Kristi Noem gave her annual budget address on Tuesday and said the state has a tighter budget than what they anticipated for.
The governor proposed increases of 1.25% for state aid to public K-12 schools, healthcare providers and state government employees, as well as large cuts to departments like the Board of Regents, South Dakota Public Broadcasting and others.
These are only Gov. Noem’s recommendations. Legislative appropriations committees will vet all departments and vote on a budget during the upcoming legislative session.
The proposal includes eliminating over 60 FTEs across various departments. The governor also recommended adding at least 69 FTEs throughout the state agencies.
An FTE, or full-time equivalence, is an accounting term used for the expected number of employees or full-time hours needed to complete a certain job. This usually correlates with the number of employees, but not always.
Below is a breakdown of the proposed cuts and increases to state departments and programs. To read every proposed line item, read the attached documents.
State aid, higher education, Board of Regents
Board of Regents
The proposed budget has a suggested BOR cut of $11.4 million in general state funds.
This includes a $4,300 cut for bond payments, and a $296,000 cut from the Digital Dakota Network (DNN), but adding an additional FTE. DDN is a video conferencing system used by state facilities, local government and K-12 education.
The governor also suggested a $9.1 million cut from general funding for maintenance and repairs.
Among the recommendations is also an increase of $300,000 and one FTE for the emergency medical residency program.
KELOLAND News reached out to the Board of Regents for comment on the budget proposal. A BOR representative said they are still reviewing the proposal, but are “committed to working closely with the governor and state leaders to find solutions that minimize the impact on our students, faculty, and staff.”
Technical College
Cybertechnology funding could see an increase of $2.8 million from “other” funds. The governor suggested a decrease of $900,000 in other fund expenditure authority to pay off bonds for the Precision Agriculture building at South Dakota State University.
State Aid for Higher Education
The budget suggests increasing state aid for general education by $14.6 million. Special education state aid has a recommended increase of $7.7 million.
For tech schools, the governor proposed an increase of $442,00 for tech college formulas and $135,000 in bond payments. A $824,000 decrease in maintenance and repairs for tech schools was also suggested.
Education
Under education, there is a proposed increase of $4,052,000 in general funds in certain areas, and a $2,055,000 decrease in others.
The governor suggests increasing the education savings account by $4 million, which includes three additional FTEs.
Nearly $22,366 could be moved from federal funds to general state funds for the Federal Medical Assistance Percentage program, as well as the enhanced FMAP program.
South Dakota Public Broadcasting advertising may be cut by $28,000, the TeachInSD website by $76,000 and dual credit programs by $922,000.
The state library has over 12 FTEs up for consideration in the budget, as well as a cut of over $1 million from state funding and almost $1.4 million from federal funds.
Federal fund expenditure authority could see a decrease in $42.3 million in federal funds, but may add three FTEs.
Health, Human and Social Services
Health Services
Under health services, the governor suggested adding two more FTEs to the Office of Child and Family Services and $231,000 in federal dollars, as well as three FTEs for forensic testing and $331,000 in other funds.
The proposed budget includes $370,000 from state funds, $330,000 in federal funds and $40,000 in other funds for the Sioux Falls One-Stop. A total of $74 million would go toward health services in the building, which also houses state departments for human services, labor and regulation, corrections, education and more.
Human Services
Human services would receive a $176,000 increase in state funds and $225,000 in federal funds for the Sioux Falls One Stop. Social services have a recommended increase of $1.2 million from the state and $655,000 from the federal government.
Enhanced and Standard Federal Medical Assistance Percentage has a proposed combined total increase of nearly $44 million from the state for human services, most of which will be transferred from federal dollars to the state. That combined total FMAP dollars for social services is $48 million.
Social Services
The governor recommends adding 10 FTEs for social service aids and $517,000 from the state and $91,000 from federal funds.
Food programs for social services could see an increase of $1.2 million.
Twenty-seven FTEs who help with Medicaid expansion would be cut under the budget proposal, as well as $1 million from state and $1 million from federal funds.
Legislature, judicial system, elected state offices
Legislature
Two additional FTEs for auditor positions in the Legislature, with a $319,000 increase in general state funds, are proposed in the budget. The salary budget for the Legislative Research Council would also increase by $172,000 from state funds.
Judicial System, Attorney General
The governor also proposed adding an FTE for an attorney to the third circuit court and a $107,000 increase, as well as one FTE inmate prosecutor and one FTE consumer protection investigator for the attorney general’s office.
Secretary of State
An additional FTE for an elections worker and in business services were among the recommendations for the secretary of state’s office.
Remainder of State Government
Executive Management
The state employee salary pool has a recommended increase of $6.8 million in state funding, $2.9 million in federal funding and $7 million in other funds. The state employee’s health insurance pool’s recommendation is an increase of $3.1 million from the state, $1.3 million in federal funds and $2.7 million in other funds.
Statewide internal controls could see an increase of two FTEs, cybersecurity could see three more FTEs and two more financial systems analyst FTE under the proposed budget.
Department of Revenue
Two FTEs may be lost from the Watertown and Mitchell Department of Revenue field offices, as well as one FTE from 605 Drive Efficiencies.
Department of Labor and Regulation
Within the Department of Labor and Regulation, the governor suggested adding one FTE to handle the state digital opportunity capacity grant and $965,000 in federal funding. The DLR’s division of banking could see three additional FTEs and $1.4 million in other funds. The board and commissions for DLR could also see two more FTEs and $454,000 in other funds. The career-ready program may lose six FTEs and $600,000 in other funds.
