SFY2021 South Dakota Budget Overview Presentation to the JCA

The Interim Joint Committee on Appropriations (JCA) met for the last time on Monday Jan 13 co-chaired by Senator John Wiik (R-Big Stone City) and Representative Chris Karr (R-Sioux Falls), to continue preparing for the Ninety-fifth Session of the Legislature.

The Bureau of Finance and Management presented information on Fiscal Years 2020 and 2021 budget adjustments as recommended by Governor Noem in her Budget Address to the Legislature on Dec 3 2019. The presentation included details on updated one-time and ongoing revenue estimates, special appropriations, Fiscal Year 2020 supplemental appropriations, ongoing general fund proposals, and Fiscal Year 2021 budget recommendations.

Highlighted budget items related to healthcare providers:

FY2020 General Fund Expense Reductions

• DSS: Decrease of $8.5M due to decrease in medical services, child care direct assistance and utilization changes
• DHS: Decrease of $2.7M the main reduction is $2.2M from the nursing home budget due to utilization

FY2020 General Fund Increase

DOH: Increase of $210K to provide mental health training and an awareness campaign for suicide prevention

​FY2020 Special Appropriations

$5M for the construction of a new USD Health Science Building

$869K Healthcare Recruitment Assistance funding to recruit medical professionals to rural communities

FY2021 General Fund Recommended changes:

• DSS/DHS: $3.8M Mandatory inflation (FQHCs, RHCs, Cross Over Claims)
• DSS: $3.7M Meth prevention and treatment services
• DHS: $1M Assisted Living rate tiers
• FMAP: Medicaid rate change 42.61% to 41.88% a savings to DSS $3.8M and DHS $2.7M

Members of the Interim Committee on Appropriations in addition to Senator Wiik and Representative Karr, committee members include Senators Brock Greenfield (R-Clark), Jack Kolbeck (R-Sioux Falls), John Lake (R-Gettysburg), Ryan Maher (R-Isabel), Reynold Nesiba (D-Sioux Falls), Jeff Partridge (R-Rapid City), Margaret Sutton (R-Sioux Falls), and Jim White (R-Huron), and Representatives Hugh Bartels (R-Watertown), Randy Gross (R-Elkton), Taffy Howard (R-Rapid City), Jean Hunhoff (R-Yankton), Lance Koth (R-Mitchell), Sue Peterson (R-Sioux Falls), Doug Post (R-Volga), and Michael Saba (D-Hartford).