Appropriations committee advances multiple funding measures, preserves state library budget

The Joint Committee on Appropriations on the morning of its public hearing advanced several bills to the floor, including an amended motor vehicle technology fee, an appropriation for airport terminal improvements and a revised plan that preserves much of the State Library’s services, while tabling two grant requests.

Why it matters: The committee’s decisions move several funding measures toward final consideration by the full Legislature and resolve questions about where fee and grant dollars would be held and how ongoing costs will be covered. Lawmakers pressed agency officials for details on long-term funding and operational oversight before voting.

The committee opened consideration of a proposal to impose a motor vehicle technology fee, Senate Bill 45. Representative Ryan Moore moved to advance SB 45 with Amendment 45B, which removes a proposed separate “motor vehicle technology fund” and instead directs the $2-per-transaction fee into the existing motor vehicle fund. Mike Howdieshell, Cabinet Secretary of the South Dakota Department of Revenue, told the committee the fee is intended to support operations and ongoing maintenance for the state’s new motor vehicle system and to help fund e-title implementation that Senate Bill 131 would require. Howdieshell said the motor vehicle fund is appropriated annually through the general appropriations act and that placing the fee into that fund would allow the department to manage those ongoing costs. The committee approved the amendment and later recorded a due-pass recommendation on SB 45B (15 yeas, 3 nays).

The committee then took up Senate Bill 56, which would authorize the Bureau of Finance and Management to pay leased rental obligations to the South Dakota Building Authority and make an appropriation; Amendment 56A was adopted. Committee discussion noted that if the bill failed, the ongoing budget would be affected by about $5 million in recurring costs, and members were urged to identify offsetting cuts if they opposed the measure. The committee gave SB 56A a due-pass recommendation (18 yeas, unanimous consent).

Lawmakers advanced Senate Bill 132A, an appropriation to support airport terminal improvements and expansion, after adopting Amendment 132A that changed a dollar amount in the bill. Supporters highlighted needs at Rapid City and Sioux Falls and discussed using the appropriation to support other airports around the state. The committee moved SB 132A with a due-pass recommendation (14 yeas, 4 nays).

A substantial portion of committee time was spent on House Bill 1041B, legislation that was amended to preserve most services at the State Library after the Department of Education reallocated funds and identified federal match opportunities. Representative Sue Jorgensen, who moved the amendment to HB 1041, said the revision would retain many digital reference services, interlibrary loan, summer reading supports and the Libby app while reducing other areas.

Joe Graves, Secretary of the South Dakota Department of Education, told the committee the department’s changes allowed the state to secure about $1.4 million in federal funding and preserve key services. Graves said the amendment would retain roughly 17 full-time positions statewide, keep most databases used by libraries and maintain interlibrary loan and summer-reading support, while acknowledging approximately $800,000 in remaining cuts. He also said oversight would remain in the Department of Education, with the state librarian reporting through existing DOE structures after the proposed change reduced the State Library Board’s role. Representative Jorgensen moved a due-pass recommendation on HB 1041B; the committee approved the measure (16 ayes, 2 nays).

The committee also considered infrastructure grants. Senate Bill 195, an appropriation for public transportation grants, was moved to the table and will not move forward at this time. House Bill 1163, an appropriation for a veterans skilled-trades center, was likewise tabled. Representative Derby led discussion and amendments on Senate Bill 95, a proposal to appropriate county rural access infrastructure funds; the committee substantially reduced the dollar amount in an inclusive amendment, then moved SB 95C with a due-pass recommendation (18 yeas).

Votes at a glance: - SB 45B (motor vehicle technology fee, amendment adopted): Committee action — due pass to the floor; recorded tally: 15 yeas, 3 nays. Amendment removed a separate technology fund and directed the $2-per-transaction fee into the existing motor vehicle fund. - SB 56A (payment of leased rental obligations to the South Dakota Building Authority): Due pass to the floor; tally recorded as unanimous consent with 18 yeas. Committee discussion noted ~ $5 million ongoing impact if not approved. - SB 132A (airport terminal improvement grants, amended): Due pass to the floor; tally recorded 14 yeas, 4 nays. Amendment adjusted the appropriation amount. - HB 1041B (revised State Library funding and board changes, amended): Due pass to the floor; tally recorded 16 ayes, 2 nays. Amendment preserves most digital services, interlibrary loan, summer-reading supports and retains roughly 17 FTEs while relying on federal match (~$1.4 million) and leaving approximately $800,000 in cuts. - SB 195 (public transportation grants): Tabled. Vote tallies were recorded in the roll call but not summarized in the committee transcript excerpt; outcome: tabled. - HB 1163 (veteran skilled-trades center grants): Tabled. Outcome: tabled. - SB 95C (county rural access infrastructure funds, amended to a lower amount): Due pass to the floor; tally recorded 18 yeas.

What lawmakers pressed agencies to clarify - Fund flow and transparency: Several members asked whether placing a dedicated fee into the general motor vehicle fund would risk the funds being “blurred and buried.” Mike Howdieshell said operational controls and the annual appropriation process would govern expenditures. - Ongoing vs. one-time costs: On SB 56A, committee members emphasized the $5 million ongoing cost and asked where cuts would be found if the item failed. - Oversight for the State Library: Representative Muckey asked who would oversee library activities if the State Library Board’s functions were reduced; Joe Graves said the state librarian (George Seaman) would continue to operate under DOE supervision and that typical departmental oversight structures would apply.

Context and next steps: Measures the committee gave due-pass recommendations will proceed to the full Legislature for further consideration. Tabling removes measures from immediate consideration, but sponsors may seek to revive them later. Committeemembers repeatedly stressed the need to identify offsets for ongoing costs before final passage.

Sources: Committee hearing transcript and committee roll-call minutes. Direct quotes in this article are attributed to speakers who addressed the committee on the record.