PRISONS, PROPERTY TAXES & CUTTING SPENDING: LAWMAKERS LOOK AHEAD TO NOEM’S BUDGET ADDRESS

PIERRE, S.D. (Makenzie Huber / South Dakota Searchlight) – Lawmakers expect South Dakota Gov. Kristi Noem to present a lean budget proposal Tuesday due to lower-than-expected revenues and an end to federal pandemic-era stimulus cash.

Several are keen to hear Noem’s plan to fund the proposed $825 million men’s prison south of Sioux Falls. The recently released guaranteed maximum price is $256 million more than what state lawmakers have set aside for the project over the past few years.

“We’ve thrown a lot of money at that project over the last two sessions I’ve been involved with,” said incoming Senate Majority Leader Jim Mehlhaff, a Republican from Pierre. “At some point, we should’ve thrown enough at it to get it done.”

The governor’s budget address kicks off the annual legislative budgeting process. Lawmakers will consider Noem’s budget proposals when they convene for the annual legislative session on Jan. 14.

Tuesday’s speech will also provide an opportunity for the governor to highlight her accomplishments during her last six years in office before she’s expected to resign in January. President-elect Donald Trump picked Noem as his Homeland Security cabinet secretary pick in November. She’ll hand the reins to Lt. Gov. Larry Rhoden during the legislative session if she’s confirmed by the U.S. Senate.

Noem will present the budget address at 1 p.m. CST from the House of Representatives at the Capitol in Pierre. South Dakota Public Broadcasting will carry the speech live.

Fiscal experts anticipate lower-than-projected state revenues for the current fiscal year, which started in July. South Dakota is on track to see negative sales tax revenue growth this fiscal year.

“That makes it difficult to do much new, and the hope is that there’s funding available to adequately fund the core priorities of the state,” said Sioux Falls Republican Rep. Tony Venhuizen, who serves as vice chair of the House Appropriations Committee. Those core priorities include education, Medicaid, state employee salaries and public safety.

Democratic Senate Majority Leader Liz Larson, of Sioux Falls, said she recognizes the lack of “wiggle room” to achieve priorities outside those responsibilities.

The prison project could be a dominant topic during the legislative session — not only the funding but also discussions about the location, which has been opposed by neighboring landowners and is the subject of a lawsuit. Incoming Senate President Pro Tempore Chris Karr, R-Sioux Falls, said unanswered questions and logistics “still up in the air” need to be addressed before the Legislature moves forward. Mehlhaff said he’s open to a bonding discussion if funds aren’t available.

Waiting any longer will increase project costs, said Will Mortenson, who was House majority leader during the last legislative session.

“Anybody who wants to bring an objection to this has to have an alternative site ready to present,” said Mortenson, a Republican from Fort Pierre. “This is a clear and present need for the state. We can’t sit around with indecision for too long.”

The new prison would largely replace the existing penitentiary in Sioux Falls, parts of which date to 1881.

A tight budget could also complicate discussions of potential state funding for local property tax relief, which some lawmakers campaigned on. Though the state and cities rely mostly on sales taxes, counties and school districts depend on property taxes.

“Only serious property tax proposals will include where the money comes from,” Mortenson said. “The state doesn’t spend a dime of property tax revenue and we’ll certainly not force a property tax cut on the backs of our schools and counties.”

Mehlhaff said he’d prefer to discuss and study revenue and government funding at all levels in the coming year to better understand the state’s tax structure and how to alleviate property tax burdens before passing legislation. If there’s one-time money available outside of Noem’s proposed budget, he’d like to give some relief to county governments.

“As this session goes on and we get a proper picture of what one-time money is available,” Mehlhaff said, “we might have some different ideas of where they can go to do the most good for South Dakotans.”

 

ELLSWORTH AFB TEMPORARILY MOVING 17 PLANES AND 800 PERSONNEL TO NORTH DAKOTA

ELLSWORTH, S.D. (South Dakota Searchlight) – Seventeen planes and 800 people will temporarily transfer to Grand Forks Air Force Base in North Dakota to accommodate a runway construction project at Ellsworth Air Force Base in South Dakota, the Air Force said Monday.

The transfer of B-1B Lancers and personnel is expected to begin this month and last about 10 months. The runway construction is one of many projects at Ellsworth to prepare for the B-21 Raider, a new long-range strike bomber under development for the Air Force by Northrop Grumman. The B-21s will eventually replace the B-1s at Ellsworth.

“The runway construction at Ellsworth is a key milestone in ensuring we’re ready to receive the B-21 Raider,” said Col. Derek Oakley, the commander of the 28th Bomb Wing at Ellsworth, near Rapid City.

Residents around Ellsworth will notice more construction traffic, the Air Force said, and locals in North Dakota’s Red River Valley will notice an increase in military vehicle freight and air traffic.

Earlier this year, several of Ellsworth’s B-1 bombers relocated to Dyess Air Force Base in Texas. The arrival date of B-21s at Ellsworth is expected “in the mid-2020s,” the Air Force said.

 

U.S. SENATE DEMOCRATIC LEADER URGES THUNE TO CONDUCT TRADITIONAL CONFIRMATION PROCESS

WASHINGTON, D.C. (Jennifer Shutt / States Newsroom) – Senate Democratic Leader Chuck Schumer sent a letter to incoming Republican Leader John Thune on Monday urging him to move nominees through the traditional confirmation process, including committee hearings and floor votes.

The letter is likely a response to President-elect Donald Trump urging Senate Republicans to recess the chamber for at least 10 days next year so he can make recess appointments, getting around the Senate’s role confirming nominees. Republicans will be in the majority when the new Congress convenes in January, taking over from Democrats.

“As we transition to the 119th Congress, Senate Democrats stand ready and willing to work with Senate Republicans to provide advice and consent as we evaluate all of the incoming president’s nominations,” Schumer wrote in the one-page letter. “In particular, we commit to working in a bipartisan fashion to process each nominee by reviewing standard FBI background-investigation materials, scheduling hearings and markups in the committees of jurisdiction, and considering nominees on the Senate floor.”

Thune, who GOP senators elected to replace Mitch McConnell next year as their leader, hasn’t committed to recessing the chamber for the time needed to allow Trump to appoint nominees single-handedly, but has repeatedly encouraged Democrats not to slow down the process.

“What we’re going to do is make sure that we are processing his nominees in a way that gets them into those positions, so they can implement his agenda. How that happens remains to be seen,” the South Dakota Republican said in mid-November.

“Obviously, we want to make sure our committees have confirmation hearings, like they typically do, and that these nominees are reported out to the floor,” Thune added. “But I’ve said this and I mean it — that we expect a level of cooperation from the Democrats to work with us to get these folks installed. And obviously, we’re going to explore all options to make sure they get moved and they get moved quickly.”

Narrow path for nominees

Trump’s nominations have received mixed reaction from GOP senators with some, like Florida Sen. Marco Rubio who will likely become secretary of State, receiving widespread praise, while others have received lukewarm receptions.

For example, Trump’s first nominee for attorney general, former Florida Rep. Matt Gaetz, withdrew eight days after Trump said he wanted him to lead the Justice Department amid widespread concerns from Republican senators about allegations of illegal drug use and paying for sex.

Republicans will have a 53-seat majority in the Senate once the next session of Congress begins on Jan. 3, meaning any nominee can lose the support of three Republican senators and still secure confirmation on a party-line vote with Vice President-elect J.D. Vance breaking the tie.

Democrats may vote for some of Trump’s nominees if they believe they’re qualified, but are unlikely to support the more controversial picks, like TV personality and former U.S. Pennsylvania Senate candidate Dr. Mehmet Oz, who Trump says he will tap to lead the Centers for Medicare and Medicaid Services.

With such narrow margins, centrist Republicans like Maine’s Susan Collins, Kentucky’s McConnell and Alaska’s Lisa Murkowski, could have influence over Trump’s Cabinet, unless the chamber allows recess appointments.

Checks and balances

Schumer wrote in his letter the Senate’s role confirming nominees should be respected regardless of who holds the Oval Office or which political party controls the chamber.

“In our system of checks and balances, the Senate plays a vital role in ensuring the President appoints well-qualified public officials that will dutifully serve the American people and honor their oaths to the Constitution,” Schumer wrote. “Regardless of party, the Senate has upheld this sacred duty for generations and we should not and must not waver in our Constitutional duty. We look forward to joining you in these efforts as soon as possible once the Senate and its committees are organized in January.”