Governor talks about theories for spending 1-time funds

• Gov. Dennis Daugaard

Gov. Dennis Daugaard

Talk about it

PIERRE — When governors and other public officials and legislators speak of “one-time” revenue, they’re typically referring to windfalls of money that weren’t expected and aren’t likely to recur, at least not with any certainty, such as from government settlements, public refinancing, and unclaimed wealth left behind by bank customers.

One of the challenges, in turn, has been finding one-time ways for the Legislature to budget those funds. In his budget recommendation this month, Gov. Dennis Daugaard laid out his philosophy and produced a list of projects that he wants to be funded.

Daugaard’s four general purposes for spending one-time revenue are to:

* Eliminate liabilities;

* Build or improve an asset;

* Secure an asset; and

* Endow a program for the future.

With those in mind, Daugaard recommended $9.7 million in state general funds and $4.7 million in other funds for nine sets of special projects, using one-time funding in the fiscal 2014 budget that starts July 1.

State lawmakers will consider the proposals in the 2013 legislative session that opens Jan. 8.

Those include $4 million for what the governor has labeled as outdoor heritage projects. They are extending the George S. Mickelson hiking and biking trail to Mount Rushmore; building a theater and visitor center complex at Custer State Park; and developing the historic Blood Run nature area south of Sioux Falls.

Another $2 million would be earmarked for additional efforts in the Black Hills to suppress mountain pine beetles that are killing the forests.

There would be $2 million appropriated for rehabilitating the Ross shaft in the old Homestake gold mine at Lead, so that more excavation can take place and the mine can be further converted into the Sanford underground laboratory.

The governor wants to send $1 million to the state’s railroad trust fund, which is used for making low-interest loans to rail projects.

Two perennial recipients of one-time funding are tax refunds for low-income and elderly persons ($500,000) and reimbursing healthcare professionals such as doctors and dentists for tuition ($208,800).

Other one-time funds would be distributed in the amounts of $4 million for replacement of Clover Hall at the South Dakota State Fair in Huron; $500,000 for conservation grants to farmers and ranchers for best-practices techniques to protect soil, water and habitat; and $215,000 for demolition of three buildings and construction of a new maintenance building at the STAR Academy near Custer for troubled youths.

Daugaard also wants to use more than $12.3 million of state general funds for special appropriations for projects in the remaining months of the 2013 fiscal year that runs through June 30.

The biggest chunk is $6 million for weatherizing two historic buildings at the State Human Services center in Yankton and demolishing many of the other decaying buildings on the campus.

Daugaard said he’s personally visited every building that would be affected by the project.

Forest fires during 2012 created red ink in the state’s wildlands fire suppression account, which is the typical method for managing the program, and the governor is requesting $4 million to cover those costs.

The Daugaard administration is proceeding toward construction of a new Veterans Home in Hot Springs. He is recommending $1.3 million of state general funds and appropriating $23.6 million of federal aid and nearly $14.8 million from other funds for the project.

Remodeling the wildland fire center at Rapid City, as part of the move from the airport complex to the old Game, Fish and Parks building, would receive $500,000 under the governor’s plan.

The Department of the Military would get $355,000 to purchase land from the city of Sioux Falls for expansion of its training and equipment site.

Federal funds would be used for the Department of the Military to spend $650,000 for construction of a motor pool building next to the National Guard readiness center in Sioux Falls.

The annual water-systems omnibus bill would use nearly $17 million of other funds and $200,000 of federal funds for its list of public projects.

And $100,000 of other funds are sought by the governor for constructing housing at the State Fair for inmates to stay while working on projects at the fairgrounds.

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