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Featured Issues

Calls for Raiding the Funds, Short-Sighted
Major fluctuations hit annual Returns

Legislators (my opponent among them) who continue to call for raiding the Trust Funds for immediate payouts, sacrifice the reliability and the solvency of the Funds. The current volatility of the financial market (evidenced by a 14% return in FY 07 followed by a 6% loss in FY '08) reinforces our responsibility to follow the prudent counsel of the Investment Office, one of the country's best. Their long-term recommendations are based on objectives of assuring essential annual payouts and maintaining the purchasing power for future generations. The annual payouts, this year totaling $43 million, range from 4%-5% and are set by either law or by Constitution. I differ with my opponent who continues to call for raiding the funds by taking out more than the recommended percentage.

Throughout our history, beginning with the Permanent Trust Fund (School and Public Lands,) in 1889, South Dakota citizens have created trust funds to provide continuous annual revenue from one generation to the next. Because of that historic commitment created in 1889, $8.8 million was paid to the K-12 school districts; $1.95 million to the Board of Regents in 2008 from the Permanent Trust (market value $169 million). The Sioux Falls School District received $1.4 million in 2008.

Over 100 years later, three additional trust funds were established by the voters to provide revenue for enhancement of education and health.

Dakota Cement Trust Fund (market value $251 million) provided $13.2 million in revenue to the State's general fund. Created with the proceeds from the sale of the State's cement business, some of these dollars are helping to fund the SD Opportunity Scholarships.

Education Enhancement Trust Fund (market value $384 million) provided $15.5 million in revenue. This was funded primarily by the tobacco settlement.

Health Care Trust Fund (market value $102 million) provided $3.9 million. This was funded by the Federal government through a long term care provisions. (Market values as of June 30, 2008. Numbers and percentages are rounded)





South Dakota's Education is on trial…and taxpayers, you're paying the entire bill
After presiding over House Education committee for 6 years, it was a strange experience to sit in the Hughes Co. Courthouse one day last September to watch from the gallery as education in South Dakota was on trial.

The education funding lawsuit began in Hughes Co. Circuit Court in early September and has now ended with the decision in the Judge's hands. At issue is whether the State's education funding violates Constitutional requirements. The plaintiffs are a small group of parents and students whose attorneys' fees are currently being paid by almost 100 school districts and the SDEA. (Sioux Falls is not funding the lawsuit.. The Defendants are the State, the Department of Education and Secretary Melmer, the Board of Ed, the Governor, and the State Treasurer. The Attorney General's office is defending the State and ultimately, you the taxpayers.

The day I attended, Secretary Rick Melmer was on the stand for the Defense testifying that we were meeting our Constitutional requirement as he outlined the success of South Dakota's students—

In 2008 state testing, (DakotaStep), 76% of all SD students were proficient or advanced in Math, up from 59% in 2003; 84% of all SD students were proficient or advanced in Reading, up from 71% in 2003. Statewide 2008 ACT scores increased to 22 with 77% of all seniors taking the test; national average was 21.1. Our high school graduation rate is 88% and we lead the nation in the percentage of high school grads continuing their education. South Dakota ranked 5th in the National Rank of Academic Achievement, a report card published by the American Legislative Exchange Council. (www.alec.org)

Announcement of these achievement levels should be a time for celebration for students and teachers; and gratitude to the taxpayers that invest over $1 billion annually in our K-12 schools. Instead, as the attorneys for the plaintiffs interrogated the Secretary, it became a day full of indictments against the State, against local control, and ultimately, against you the taxpayer for not spending enough. The Secretary, who has been both teacher and administrator, consistently testified that school and community leadership are the key elements of educational excellence. Without that leadership, additional resources do not translate into higher student achievement.

As I listened to the Secretary describe the key elements of the Department of Education's mission: student learning, leadership, service, I thought what a shame to divert their attention away from kids to this lawsuit! I've been privileged to work with these educators over many years. I know they have dedicated themselves and hundreds of millions of federal and state tax dollars partnering with teachers and administrators to improve student achievement and opportunities. Their work has resulted in significant improvement in student learning. Now, how many in the department, who would like to be concentrating on learning, leadership, and service, have needed to redirect their focus to defend the state taxpayers against this lawsuit. What lost opportunities!!!

And taxpayers, you are paying for it all—the plaintiffs' legal fees with education dollars from school districts and the State's defense. All this money; all this time; all this energy is being expended to demand more money from you, the taxpayers. While we will not know the Judge's decision for a few months, losses in court cases in other States have resulted in significant tax increases and loss of local control.





Richness of Opportunity
I left the campaign trail the first part of this week to resume my legislative duties. I am chairing the Agency Review for the Department of Tourism and State Development. The legislature does an extensive review of each department in state government every 10 years. An essential part of that review is public comment. Because not everyone can come to Pierre, this year our legislative committee came to the public. We met Monday, September 15 in four locations—Sioux Falls, Aberdeen, Chamberlain, and Rapid City to take public comments regarding the work of the Department. We were so appreciative to have so many members of the public attend and testify at our hearings. You are never quite sure how many people will come so we were scheduled to meet from 10 until 2 hoping to accommodate most everyone's schedule. We began at 10 and because there were so many waiting to testify, we actually took our first break at 2:30, finishing after 3. We then met Tuesday in Pierre to continue public hearings and to summarize comments from around the State.

Great partnerships, ongoing support, strong relationships, and the "richness of opportunity" were the overriding themes from the public from across the State regarding their work with the department. From Secretary Benda to all of his management team, the public was extremely positive in their evaluation of the department's personnel and the professionalism and the strong working ties they have with the department. Sioux Falls Development Foundation leaders spoke of the positive effects of "consistent marketing" from the Department and testified that approximately 60% of their leads come from the Department. Along with many others, they suggested expanding the Dakota Roots program which has resulted in over 600 former South Dakotans "coming home" to work in the State. Commenting on workforce development, the new President of the Foundation, Slater Barr reminded us that, "the timing is critical." People need to know now about the quality of jobs available in South Dakota.

The Department is responsible for all facets of economic development and many felt that blending tourism, the arts, and history with economic development has encouraged everyone to appreciate the connection among all these vital facets of South Dakota life. As one person stated, "it has made us think differently." Rather than just focusing on their area, each now attempts to find possibilities and opportunities working with each other. People may come to South Dakota as a tourist but are intrigued, not only by the scenery, but by the art, or the history, or the economic opportunities.

The Arts Council was very well represented from opportunities in the A+ schools to the South Dakota Symphony. There was so much excellent testimony as to the impact of the Arts Council on individual South Dakotans that I won't attempt to mention everyone participating as I might leave someone out. We appreciate citizens coming from all over the State to share their stories and their support.

The success of our affordable housing programs (less than 2% default) and suggestions for expansion of the programs; the great historical treasures within our state; the new research infrastructure bringing in scientists and new product opportunities; the expansion of the biotech industries—these are all enhanced by their work with this department. It truly does represent—Great faces, great places, and great people!



Evolving the Study of Physics
What is it that brings together Dr. Frank Calaprice, a Princeton University physics professor; Dr. Barbara Szczerbinska, a Dakota State University physics professor, originating from Poland; Grey Hamilton; a 2008 Red Cloud High School graduate; and Sarah McMahon, a 2008 West Central graduate?

The answer is the Deep Underground Science and Engineering Laboratory (DUSEL) / Sanford Lab at Homestake, a shared passion for physics, and scientists who believe that their role as teacher is critical for the future of science.

As a participating scientist in the April DUSEL planning session in Lead, Dr. Calaprice initiated the idea of having South Dakota students join Italian students at a summer school at Princeton and then at the Gran Sasso Lab in Italy. Collaborating with Dr. Szczerbinska and Kevin Forsch, the Governor’s policy adviser, they made it happen for two very impressive young grads. Next summer, thanks to a grant from the 3M Corporation, 10 South Dakota seniors or college freshmen will participate in this month-long study at Princeton, Sanford Lab at Homestake, and the Gran Sasso National Lab in Italy. Worldwide scientists see the Deep Underground Science and Engineering Lab as “transformational” in the study of physics. We in South Dakota see these types of relationships created because of the DUSEL as equally “transformational.”

While some of us may see the DUSEL as the rebirth of a once prosperous mining community, enthusiastic scientists see the Sanford Lab at Homestake and the DUSEL as the center of a revolution of the “new physics of the universe.” (deepscience.org) As Dr. Frank Calaprice stated, “Physics is not done; it’s alive.” And he believes there are new “transformational” discoveries to be made deep underground in the Black Hills of South Dakota. These scientists and 3M absolutely believe that our students and teachers must be part of that revolution!