State employee raises in play as budget writers project extra $18.8 million

PIERRE — South Dakota budget writers on Tuesday accepted revenue targets that they said could put state employee raises in reach.

The Joint Committee on Appropriations voted unanimously to approve estimates for this budget year and the next one that freed up millions of dollars.

With that additional revenue at their disposal, appropriators on Monday night said they could fund additional projects in the current budget year and look to boost state employee salaries, education funding and Medicaid provider payments in the next one.

The extra $18.8 million projected for the budget year that runs July 1 through June 30, 2019 would be welcome, advocates said. Some shared their budget requests Tuesday.

More:State employee raises possible as budget writers propose revenue targets

Eric Ollila, executive director of the South Dakota State Employee Organization, said the group wanted appropriators to budget $6.2 million in general fund dollars to give state employees a 1.7-percent cost of living adjustment. He said the group would also like to see additional general fund dollars be used to fund the state health plan.

The requests come after state employees saw their salaries remain flat in the current budget year with increased expenses for their health insurance plans.

"If we come out of this session with the same results as last session, I'm certain we'll be seeing increased employee turnover and that harms the effectiveness of state government," Ollila said.

Gov. Dennis Daugaard, as well as members of the appropriations committee, indicated that boosting employee pay would be a priority. 

Rep. Jean Hunhoff, R-Yankton, presented the new projections for state revenue Tuesday morning and pointed out that the state was projected to hit a landmark next year, bringing in more than $1 billion in sales and use taxes.

"We’re seeing some positive things happen in South Dakota but we’re taking a conservative approach," she said.

State appropriators will weigh the funding requests, as well as those brought forth by other state departments and agencies, as they craft a spending plan for budget year 2019. They are set to present their budget proposal in March.

Follow Dana Ferguson on Twitter @bydanaferguson, call 605-370-2493 or email dferguson@argusleader.com