Greetings from your State Capitol. Last week was a wonderful week in Pierre, welcoming guests from District 8, including Horizon Health and members of the Madison community, as well as government classes from Sioux Valley and Lake Preston. There was a lot going on for bill activity in both the Senate and the House.
The soft economy and meeting our budget obligations are a big hurdle for the Legislature. On Wednesday, the Appropriations Committee adopted revenue numbers so the Legislature can finalize our balanced budget before the session adjourns. The committee set the projection to $2.46 billion in ongoing dollars slightly more dollars than originally estimated. This is the first time since 2010 that we have dealt with declining revenue.
A big debate in the Senate in Week 5 was SB 100, which allows firearms on the campuses of technical colleges and public universities, including DSU and SDSU. In committee, the NRA supported the bill, and opponents included the presidents of the regental schools and the student federations. A primary concern from opponents was that there were no requirements for guns to be locked and secured to avoid theft, and research spaces like Mad Labs or clean rooms were restricted, where no foreign objects were allowed to be used to prevent contamination for research. Ahead of a floor vote on SB 100, the bill sponsor, NRA, and universities reached an agreement to allow students and staff to exercise their Second Amendment rights safely, and the bill passed with 32 Republican and 1 Democratic yes votes.
I have heard from many across District 8 that property taxes are too high, and I agree. On Thursday, Gov. Larry Rhoden and a group of lawmakers unveiled their plan for property tax relief.
As part of SB 216, the proposal would only allow up to a 3% increase in taxable value on owner-occupied homes during the next five years. Only home improvements that are worth 60% of a homes value can be factored into assessments. The proposal will also increase the income limits for the states assessment freeze program. I plan to dig deeper into the proposal and learn more about the estimated savings for District 8 and the potential impact on school districts. Let me know if you have thoughts and ideas on the Governors proposal.
Thursday, the Senate came up with a vote short to provide incentives for data centers that want to invest in South Dakota. We will take the issue up again on Tuesday. Nearly every state offers an incentive to attract data centers. South Dakota is uniquely situated to be a hub for these centers.
They do not require a massive workforce, they need minimal public infrastructure, and they would increase local tax bases. South Dakota has one massive data center right now, and it has been a boon for the school district and county while reducing the tax burden on property owners there.
It is conservative and common sense to attract businesses here with a small carrot to get a huge return. These businesses are not drawn here because other states are offering better incentives. This means South Dakota will not lose anything with a rebate program. But without it, we will never realize the future growth of the states economy in a sector President Trump has made a priority of fostering growth.
Ahead of us in Week 6, the Senate will be busy as we finish hearing all Senate bills before our crossover day deadline in Week 7, when all proposals need to pass to the House or be defeated.
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