Committee defers decision on $3.22 million request for veteran skilled-trades center

Representative Tim Goodwin introduced House Bill 11-63, asking the Joint Appropriations Committee for $3,218,777 in general funds to construct and equip a veteran skilled-trades center near Hot Springs, S.D. The committee deferred action on the bill.

The bill’s proponents described the project as a workforce-development and veteran-support initiative. David Gates, founder and president of Veterans Helping Hands Project (a 501(c)(3) cited in testimony), said the center would provide transitional job skills to veterans coming out of rehabilitation and asserted the project would reduce veteran suicide by giving participants work and purpose. “As soon as we put a hammer in Logan’s hands, he changed,” Gates said, describing two veterans he said his organization had assisted.

Gates and Representative Goodwin said private fundraising and donated land have already contributed to the project. Goodwin said organizers have raised “3 and a half million” dollars in a mix of pledges and cash and that 10 acres of land have been donated; Gates added that the group had raised about $3.5 million and that some local entities, including the South Dakota Home Builders, support the effort. Proponents described the long-term plan as including housing and ancillary services statewide, and one witness referenced an overall program concept approaching $20 million when later housing phases are included.

Brandy Meissner of the Bureau of Finance and Management testified in opposition, citing the project’s use of one-time general funds and concerns about unclear local contributions and long-term operating costs. Meissner asked whether future phases and ongoing expenses had reliable funding sources and recommended opposing the bill absent clearer commitments.

Committee members asked detailed questions about the fundraising (whether amounts were pledges or cash in hand), ownership and status of the donated land, the origin of the cost estimate, and how project costs were calculated. Gates said the project’s $3.2 million line-item came from current material and labor estimates assembled for the building, classrooms, kitchen and equipment; he said some material prices were about three months old. He identified the operating entity as Veterans Helping Hands Project (EIN stated in testimony as 82-4820103).

Because the committee received no second on an initial procedural motion, the chair announced the committee would defer action on HB 11-63. The transcript records the outcome as “defer[red] action on 11 63.” No floor or final funding vote on the bill occurred at this hearing.

Proponents said the center will target veterans exiting rehab programs and emphasized prevention of suicide and provision of vocational skills. Opponents urged more specificity about local match, long-term operations, and the risk of using general funds to subsidize what some state officials view as private or donor-led projects.

The committee did not reach a decision on funding during the hearing; Representative Tim Goodwin and Mr. Gates said they would provide further documentation on donors and land deeds to committee members.