- Gentlemen, start your drones: Judge’s ruling opens door for commercial use
- Soldier who hid, bragged about not saluting flag to be punished — in secret
- ‘Maverick’ of the seas: ‘Top Gun’ school for U.S. ship officers to launch
- Putin declares Sochi Paralympics open amid Ukrainian protest
- ‘In Jesus name, we pray’ sparks ire at Ohio council meeting
- Navy’s first laser weapon ready for prime time; drone killer to deploy this summer
- Billionaire backer: Rick Santorum ‘needs to be heard’ in 2016
- Obamacare fallout: 49 percent pessimistic; 45 percent ‘scared’
- DHS accused of holding U.S. citizen at airport, using emails to pry into her sex life
- Seattle socialist: Minimum-wage discussion skewed by ‘right-wing’ GAO analysis
SD Senate passes bills to fund development program
PIERRE, S.D. (AP) - The South Dakota Senate voted unanimously Tuesday to approve Gov. Dennis Daugaard’s plan to use a windfall in unclaimed property payments to finance the state’s new economic development program.
The bill will use $30 million from unexpectedly large receipts of unclaimed bank accounts and other abandoned assets to finance the Building South Dakota Fund, which provides loans and grants for housing, workforce education and infrastructure that support development projects. The measure will support the development fund for three years.
Senators on Tuesday also approved a companion bill, which will use any state budget surpluses to support the development fund after the unclaimed property money runs out in three years.
The development fund generally could not spend more than $10 million a year.
The two bills, which next go to the House, change the financing of much of a major economic development program passed by the Legislature last year.
The 2013 law seeks to attract large projects by refunding all or part of the state sales tax paid by projects costing more than $20 million. But the contractor’s excise tax paid by such projects would go into the Building South Dakota Fund, which also would get money from the two bills passed Tuesday by the Senate.
After the unclaimed property money has been spent, budget surpluses could be used each year to replenish the development fund, said Sen. Corey Brown, R-Gettysburg.
Any surplus revenue at the end of each year would first be used to make sure the state’s total reserves equal 10 percent of the prior year’s general spending, Brown said. Any surplus left after that would be placed in the Building South Dakota Fund, which could not exceed 1 percent of the prior year’s budget. That would build the development fund to about $15 million in the next few years, he said.
Senate Democratic Leader Jason Frerichs, D-Wilmot, said he supports the measures because they essentially provide that the state’s budget reserves should be 10 percent of annual spending. Lawmakers in recent years have debated how large the budget reserves should be, he said.
TWT Video Picks
Taxpayers must pay the freight for over-budget train projects
- Kim Jong-un calls for execution of 33 Christians
- Rand Paul wins 2014 CPAC straw poll, Ted Cruz finishes a distant second
- Bill Clinton cashes in on struggling nonprofit hospital
- EDITORIAL: As jobs vanish, Obama wants more of same
- Stolen European passports on Malaysian Airlines Boeing 777
- Obama engages in Ukraine diplomacy from Fla. resort as Russia digs in
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- PRUDEN: Likening Putin to Hitler on Ukraine shows Hillary's shaky grasp of history
- Bill Clinton poses for photo with Bunny Ranch prostitutes
- Russias Putin nominated for Nobel Peace Prize
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again